SOURCE: PlanGraphics, Inc.

April 05, 2007 18:37 ET

PlanGraphics, Inc. Reports September 30, 2005 End of Year Results

FRANKFORT, KY -- (MARKET WIRE) -- April 5, 2007 -- PlanGraphics, Inc. (PINKSHEETS: PGRA) announced today that it has filed its annual report on Form 10-KSB for the year ended September 30, 2005. The financial results include:

--  Revenues of $6,839,575 in 2005 down from 2004 revenues of $7,827,923
--  Operating loss of $747,527, which includes goodwill impairment of
    $450,000, as compared to an operating loss of $775,103 in 2004
--  Net loss of $375,764 in 2005 versus a 2004 net loss of $989,583
The audit report includes a "going concern" statement.

The revenue decline was mostly attributable to liquidity issues of the Company affecting its ability to service projects with in-house or subcontractor staffing. Operating losses were primarily the result of the reduction in revenue coupled with increased costs related to subcontractor versus employee labor.

The Company reported a total of approximately $475,005 of non-recurring gains from the sale of its interest in Jobview and from the termination of the capital lease for its Frankfort facility decreased the overall space leased by the Company under the new agreement.

The Company's backlog of work decreased to approximately $5.5 million at December 31, 2006, versus about $14 million at October 31, 2005. The decrease in backlog and assignments is attributable to the drawdown of multi-year contracts including the New York City Department of Environmental Protection and several of the large World Bank China projects, the transfer of the Guangzhou project to a US based business partner and the reduction of project scope with a state government client. Delays in the completion of several competitive awards also hindered backlog replacement with new contracts.

The Company expects revenue for fiscal year 2006 to decrease from 2005 levels and to be in the range of $3.9 to $4.2 million. In addition, the Company expects to report a net loss and additional impairment of goodwill. The Company did make progress during 2006 in further reducing its total operating costs and expenses.

Also during fiscal 2006, the Company:

--  Continued to experience liquidity issues caused in part by its efforts
    to manage prior year accounts payable and by the cessation of work for
    a public sector client.
--  Entered into revised factoring agreement that reduced the monthly-
    required transaction amount from $500K to $350K and increased the
    percentage of each invoice immediately paid from 80% to 85%.
--  Continued to explore a wide range of options for achieving shareholder
--  Sold $500,000 of Series A preferred stock to address working capital
    needs that as of February 17, 2007 is redeemable at the request of the
    purchaser. The purchaser also received a warrant to acquire common
    stock which could result in a change of control of the Company and a
    diversification of the business.
--  Obtained approximately $2.3 million in new contract awards including
    Washington DC Office of the Chief Technology Officer, Fairfax County,
    VA, Genutec Business Solutions and San Francisco Department of
    Telecommunications and Information Services. (DTIS)
For 2007, first quarter revenue is expected to be in a range of $1.3 to $1.5 million with net income under $100,000. Based on first quarter results, management estimates that annual revenue for 2007 will be in a range of $5 to $6 million with minimal net income.

During first quarter 2007, the Company:

--  Continued to experience liquidity issues.
--  Retained the services of Gilford Securities to advise on restructuring
    and leveraging the assets of the Company.
--  Obtained approximately $1.1 million in new work including: extensions
    to the San Francisco DTIS, Fairfax and New York City Department of
    Environmental Protection projects.
--  Released Xmarc version 7.0 and extended maintenance and usage
    agreements with all current customers and Value Added Resellers of
    Xmarc and STEPs.
For a complete discussion of PlanGraphics' results, see the financial statements and annual report filed on Form 10-KSB filed with the Securities and Exchange Commission.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including levels of backlog, anticipated results for fiscal years 2006 and 2007, including estimated revenue and net income amounts. These forward-looking statements involve risks and uncertainties and actual results could differ materially from those predicted in any such forward-looking statements. Factors that could cause actual results to differ materially from those contained in forward-looking statements include, without limitation, the company's ability to continue as a going concern, the company's liquidity constraints and ability to obtain financing and working capital on favorable terms, the continued acceptance of the company's work products, increased levels of competition, technological changes, the company's dependence upon subcontractors, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to, and does not currently intend to, update these forward-looking statements.

PlanGraphics, Inc. is a full life-cycle systems integration and implementation firm providing a broad range of services in the design and implementation of information technology in the public and commercial sectors. PlanGraphics' experience with spatial information systems and e-services capabilities provides a critical discriminator among other IT consulting and integration firms. PlanGraphics has headquarters in Frankfort, Kentucky, and regional offices in Maryland and Colorado. On the Web:

Contact Information

  • Contact:
    Fred Beisser
    Senior Vice President - Finance
    Tel: (720) 851-0716
    email: Email Contact