SOURCE: Labwire, Inc.

December 05, 2006 09:00 ET

Labwire Files Third Quarter Report, Revenue and Earnings Increase Year to Date

HOUSTON, TX -- (MARKET WIRE) -- December 5, 2006 -- 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 interim financial report for the period ended September 30, 2006.

For the quarter ended September 30, 2006, Labwire reported gross revenue of $778,959, compared to gross revenue of $695,137 in the third quarter of 2005, an increase of 12.1%. The Company experienced growth across all of its business segments, including: (i) employee screening services, which increased $21,874 in the third quarter of 2006 over the same period in 2005; (ii) canine security and surveillance, which generated $58,998 in the third quarter of 2006 compared to zero revenue during the same period in 2005; and (iii) management services, which generated $2,950 in the third quarter of 2006 compared to zero revenue during the same period in 2005.

For the nine months ended September 30, 2006, Labwire's gross revenue was $2,735,907, compared to $1,729,261 during the same period in 2005. This represents an increase of $1,006,646 or 58.2%.

For the quarter ended September 30, 2006, Labwire reported gross profit of $263,334, compared to gross profit of $272,550 in the third quarter of 2005, a decrease of $9,216 or 3.4%. For the nine months ended September 30, 2006, Labwire reported gross profit of $953,058, compared to gross profit of $655,525 during the same period in 2005, an increase of $297,533 or 45.4%.

For the quarter ended September 30, 2006, operating expenses were $286,945, compared to operating expenses of $234,868 in the third quarter of 2005, an increase of $52,077 or 22.2%. For the nine months ended September 30, 2006, operating expenses were $909,858, compared to operating expenses of $746,663 during the same period in 2005, an increase of $163,195 or 21.9%.

For the quarter ended September 30, 2006, the Company reported a net loss of $31,077, compared to net income of $35,872 during the third quarter of 2005, a decrease of $66,950. For the nine months ended September 30, 2006, net income was $21,058, compared to a net loss of $97,243 during the same period in 2005, an increase of $118,302.

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