SOURCE: Labwire, Inc.

August 14, 2008 15:20 ET

Labwire Announces Financial Results for First Quarter of 2008

HOUSTON, TX--(Marketwire - August 14, 2008) - Labwire, Inc. (PINKSHEETS: LBWR), a leading provider of employee screening solutions and canine security and surveillance services, announced that Moore and Associates has completed its review of the financial records and results for the quarter ending March 31, 2008 and is pleased to report the following results:

1) Total Revenue of $879,997 vs. $1,167,976 in 2007. Management had previously projected this decline due to the acquisition of its largest client by a non-client London based company. Labwire has negotiated the return of this business (see Labwire release May 15, 2008 "Labwire Signs Alliance") and has already begun the transition of this business back to Labwire (see Labwire release June 30, 2008 "Labwire Completes First Conversion") and expects the returning business to actually grow significantly as it returns.

2) Gross Profit improved to $417,289 vs. $373,688 in 2007. This represents a $43,601 increase or a 11.67% improvement. Most importantly, gross margin improved to 47% from 32% in 2007. This encouraging trend is indicative of the addition of the OTI business and management's focus on adding high margin business to its contracts and capturing revenue for its technology services.

3) Operating Expense: Most operating expenses were flat or down except Payroll Expense which increased to $239,393 vs. $127,072 in 2007. The increase was attributable to the addition of OTI, one-time severance packages, and cost of living adjustments.

"The 1st quarter net income of $7,297 represents another in a string of profitable quarters for Labwire," stated Marlin Williford, CFO. "We improved margins and absorbed some further overhead restructuring of OTI. This gives us a good foundation to build on as we anticipate revenue growth to resume in the second half of the year."

Dexter Morris, Labwire Chairman and CEO, provides the following insight into business activity for this year: "We are pleased with our revenue numbers; we experienced a $550,000+ revenue short fall for the quarter with this business transaction, but were able to increase our base business by more than $250,000, allowing Labwire to have significant revenue and a profitable quarter. To accomplish this and raise our gross margins at the same time is rewarding for management and we are looking forward to more growth and profitability in the second quarter."

About Labwire

Labwire, Inc., Headquartered in Houston, TX, provides secure and compliant employee drug screening and background checking services to Fortune 500 corporations via the Labwire™ Platform. Labwire™ is a proprietary, web-based application that streamlines the complex regulatory and record management activities associated with employee screening, delivering accurate timely results while eliminating service calls and paper trails. This comprehensive solution to managing employee screening services is the most efficient and cost-effective platform in the industry.

Safe Harbor Provisions:

Certain oral statements made by management from time to time and certain statements contained in press releases and periodic reports issued by Labwire, Inc., (the "Company"), as well as those contained herein, that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Management's Discussion and Analysis, are statements regarding the intent, belief or current expectations, estimates or projections of the Company, its Directors or its Officers about the Company and the industry in which it operates, and are based on assumptions made by management. Forward-looking statements include without limitation statements regarding: (a) the Company's strategies regarding growth and business expansion, including future acquisitions; (b) the Company's financing plans; (c) trends affecting the Company's financial condition or results of operations; (d) the Company's ability to continue to control costs and to meet its liquidity and other financing needs; (e) the declaration and payment of dividends; and (f) the Company's ability to respond to changes in customer demand and regulations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When issued in this report, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are generally intended to identify forward-looking statements.

Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) changes in the regulatory and general economic environment; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Company's revenue and/or cost and expenses, such as increased competition, lack of qualified marketing, management or other personnel, and increased labor and inventory costs; (iv) changes in technology or customer requirements, which could render the Company's technologies noncompetitive or obsolete; (v) new product introductions, product sales mix and the geographic mix of sales.

The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this advertisement are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, governmental approval processes, the impact of competitive products or pricing, technological changes, and the effect of economic conditions.

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