SOURCE: Labwire, Inc.

March 20, 2007 09:00 ET

Labwire Files 2006 Annual Report

HOUSTON, TX -- (MARKET WIRE) -- March 20, 2007 -- Labwire, Inc. (PINKSHEETS: LBWR), a leading provider of employee screening solutions and canine security and surveillance services, is pleased to announce that it has filed its annual report for the year ended December 31, 2006.

For the year ended December 31, 2006, Labwire reported gross revenue of $3,701,742, compared to gross revenue of $2,665,264 for the year ended December 31, 2005, an increase of $1,036,478 or 38.9%. The Company experienced growth across all of its business segments, including: (i) employee screening services, which increased $378,525 for the year ended December 31, 2006 over the same period in 2005; (ii) canine security and surveillance, which generated $626,622 for the year ended December 31, 2006 compared to zero revenue during the same period in 2005; and (iii) management services, which generated $31,331 for the year ended December 31, 2006 compared to zero revenue during the same period in 2005.

"2006 was a good year for Labwire," commented Mr. Dexter Morris, Chief Executive Officer of Labwire, Inc. "Some of the highlights of 2006 include total revenue growth of nearly 40%, the addition of five new employee screening solutions clients, growth of more than $600,000 within canine security and surveillance services, and the overall expansion of available services as a result of an agreement with a leading provider of background screening solutions. Top line growth was excellent and bottom line growth should improve as we retire startup costs and fully implement contracts signed during 2006. We are excited about 2007, particularly as we complete audited financials for fiscal years 2005 and 2006 as part of the process and in preparation of becoming a fully reporting company."

For the three months ended December 31, 2006, Labwire reported gross revenue of $965,835, compared to gross revenue of $936,003 in the fourth quarter of 2005, an increase of $29,832 or 3.2%.

For the year ended December 31, 2006, Labwire reported gross profit of $1,311,983, compared to gross profit of $1,278,678 for the year ended December 31, 2005, an increase of $33,306 or 2.6%. For the three months ended December 31, 2006, Labwire reported gross profit of $358,926, compared to gross profit of $623,153 during the same period in 2005, a decrease of $264,227 or 42.4%.

For the year ended December 31, 2006, operating expenses were $1,178,327, compared to operating expenses of $987,822 for the year ended December 31, 2005, an increase of $190,505 or 19.3%. For the three months ended December 31, 2006, operating expenses were $268,469, compared to operating expenses of $241,159 during the same period in 2005, an increase of $27,310 or 11.3%.

For the year ended December 31, 2006, the Company reported net income of $73,793, compared to net income of $274,859 for the year ended December 31, 2005, a decrease of $201,066. For the three months ended December 31, 2006, net income was $52,734, compared to net income of $372,103 during the same period in 2005, a decrease of $319,368.

About Labwire, Inc.

Labwire, Inc. is headquartered in Houston, Texas and 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. For additional information about Labwire, Inc., please visit www.labwire.com.

Forward-Looking Statements

This press release contains "forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Contact Information

  • Contact:

    S.D. Torrey Hills Capital, Inc.
    James Macdonald
    Investor Relations
    (858) 456-7300