| [May 16, 2006] |
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Aradyme Reports Financial Results for Three- and Six-Month Periods
OREM, Utah --(Business Wire)-- May 16, 2006 -- Aradyme Corporation (OTCBB:ADYE) today announced revenue of $265,736 for the three-month period ending March 31, 2006 compared to $229,299 for the three-month period ending March 31, 2005. The company also released six-month fiscal 2006 revenue of $467,891, compared to prior year six-month revenue of $256,099. These increases in revenue result from the completion of payment milestones on the company's customer data migration/conversion projects.
"Although the total revenues recognized in the three- and six-month periods were lower than expected due to customer delays in project schedules and changes in project scopes, we are pleased with the progress we continue to make in showing revenue growth over the prior year periods, and in securing an important new alliance with Syscon Justice Systems," said James R. Spencer, chief executive officer of Aradyme. "Throughout the first half of this fiscal year, we have been actively engaged in expanding and building relationships with current and new strategic allies, and groups of potential customers who are recognizing the value and benefits of our products and services, and we expect to begin announcing some of those relationships in the weeks and months ahead."
Highlights
Financial and other highlights from the three- and six-month periods include:
-- Second quarter revenue of $265.7 thousand increased 31% from revenue of $202.2 thousand for the first quarter of fiscal 2006, and increased 16% from revenue of $229.3 thousand for the second quarter of fiscal 2005.
-- Six-month revenue of $467.9 thousand grew 83% compared to revenue of $256.1 thousand for the comparable six-month period in fiscal 2005.
-- Net loss for the three-month period ended March 31, 2006 of $644,533 decreased from a net loss of $722,175 in the prior quarter, but increased from the net loss of $598,828 reported in the comparable three-month period from the prior year.
-- Net loss for the six months ended March 31, 2006 of $1,366,708 decreased from a net loss of $1,412,291 in the comparable six-month period ended March 31, 2005.
-- The company secured a contract with Syscon Justice Systems Ltd to provide data migration and conversion solutions to the State of Nevada Department of Corrections. This contract represents a significant contract to provide our solutions in an entirely new market, with a strategic ally that is recognized as a world leader in offender management software.
Additional Financial Results
Total operating expenses for the quarter ended March 31, 2006 were $904.8 thousand, compared to $908.0 thousand in the prior quarter, and compared to $785.9 thousand in the comparable quarter of fiscal 2005. These operating expenses include wage-related costs to support the delivery of our solutions to customers under current contracts. However, a significant part of our total expenditures are directed to the further development of the proprietary technical resources owned by the company, and to the expansion of our marketing and sales activities in an effort to further the commercialization of our technologies and services.
Outlook
During this past year we have continued to prove and refine our business model, and are confident that the large-scale projects we have completed in the past two quarters will assist us in our sales efforts to accelerate our push to profitability. In the months ahead, we plan to continue our focus on developing repeatable, predictable and sustainable revenues through leveraging and expanding our strategic ally and customer base, as well as protecting and enhancing our corporate assets through the protection of our intellectual property. We continue to actively pursue a mix of sales opportunities that will allow us to generate shorter-term revenues while continuing to cultivate longer-term opportunities in both the public and private sectors. We expect these revenue opportunities to mature through the end of this fiscal year and continue into the next fiscal year.
About Aradyme Corporation
Aradyme Corporation (OTCBB:ADYE) is a data management company that provides world-class solutions in data migration/conversion, data integration and application development. These solutions are made possible through a mix of proprietary next-generation database technologies, methodologies and experience that enables customers to simplify their data management efforts and substantially increase the quality of their data. By leveraging the company's dynamic-schema database management system, which has been in development for more than 25 years, customers are able to bypass the limitations of traditional database technology and achieve greater flexibility in data handling. For more information about Aradyme, call 801-705-5000 or visit the company's web site at http://www.aradyme.com.
This release contains forward-looking statements. Forward-looking statements are not guarantees of future revenues, sales, agreements, events, growth or results. Forward-looking statements are subject to risks and uncertainties outside Aradyme's control. Actual events or results may differ materially from the forward-looking statements. For a discussion of additional contingencies and uncertainties to which information respecting future events is subject, see Aradyme's annual report on Form 10-KSB for the fiscal year ended September 30, 2005, and other SEC reports.
ARADYME CORP. AND SUBSIDIARY
Consolidated Balance Sheets
March 31, Sept. 30,
ASSETS 2006 2005
------------ ------------
(Unaudited)
CURRENT ASSETS
Cash $ -- $ 84,485
Accounts receivable, net of
allowance 262,646 335,499
Prepaid expenses 36,000 68,288
------------ ------------
Total Current Assets 298,646 488,272
------------ ------------
PROPERTY AND EQUIPMENT, NET 166,165 138,313
------------ ------------
OTHER ASSETS
Prepaid license fees 89,912 78,662
Deposits 21,580 21,580
------------ ------------
Total Other Assets 111,492 100,242
------------ ------------
TOTAL ASSETS $ 576,303 $ 726,827
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
CURRENT LIABILITIES
Cash overdraft $ 7,729 $ --
Accounts payable 147,668 134,147
Accrued expenses 480,084 347,940
Notes payable - related party 105,781 100,794
Notes payable 115,256 499,896
------------ ------------
Total Current Liabilities 856,518 1,082,777
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock: 1,000,000 shares
authorized of $0.001 par value,
0 shares issued and outstanding,
respectively -- --
Common stock: 50,000,000 shares
authorized of $0.001 par value,
32,229,546 and 25,229,546 shares
issued and outstanding, respectively 32,230 25,230
Additional paid-in capital 7,645,237 6,209,794
Accumulated deficit (7,957,682) (6,590,974)
------------ ------------
Total Stockholders' Equity (Deficit) (280,215) (355,950)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 576,303 $ 726,827
============ ============
ARADYME CORP. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended For the Six Months Ended
March 31, March 31,
-------------------------- ------------------------
2006 2005 2006 2005
------------ ------------- ------------ ------------
REVENUES $ 265,736 $ 229,299 $ 467,891 $ 256,099
OPERATING EXPENSES
Wages and
payroll taxes 691,795 560,851 1,425,161 964,026
Contract
services 64,286 90,447 112,355 321,237
Rent 37,378 22,159 60,711 37,832
Depreciation and
amortization 18,585 7,844 36,153 15,923
Other operating
expenses 92,777 104,621 178,483 157,053
------------ ------------- ------------ ------------
Total
Operating
Expenses 904,821 785,922 1,812,863 1,496,071
------------ ------------- ------------ ------------
LOSS FROM
OPERATIONS (639,085) (556,623) (1,344,972) (1,239,972)
OTHER INCOME
(EXPENSE)
Interest expense (5,448) (2,313) (21,736) (132,427)
Loss on disposal
of assets -- (39,892) -- (39,892)
------------ ------------- ------------ ------------
Total Other
Expense (5,448) (42,205) (21,736) (172,319)
------------ ------------- ------------ ------------
NET LOSS $ (644,533) $ (598,828) $(1,366,708) $(1,412,291)
============ ============= ============ ============
BASIC LOSS PER
SHARE $ (0.02) $ (0.02) $ (0.05) $ (0.06)
============ ============= ============ ============
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING 31,367,324 24,201,063 28,838,887 23,832,510
============ ============= ============ ============
ARADYME CORP. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
For the Six Months Ended
March 31,
-------------------------
2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(1,366,708) $(1,412,291)
Adjustments to reconcile net loss to net
cash used by operating activities:
Depreciation and amortization 36,153 15,923
Loss on disposal of assets -- 39,892
Common stock issued for services -- 96,000
Common stock issued for line of credit -- 20,000
Warrants issued for line of credit -- 107,787
Changes in assets and liabilities:
Decrease (Increase) in accounts
receivable 72,853 (133,374)
Decrease in prepaids 21,038 4,399
(Increase) in deposits -- (20,578)
Increase in accounts payable and
related party payables 13,522 42,278
Increase in accrued expenses 132,145 119,938
(Decrease) in interest payable (11,030) --
------------ ------------
Net Cash Used by Operating Activities (1,102,027) (1,120,026)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (64,005) (60,024)
------------ ------------
Net Cash Used by Investing Activities (64,005) (60,024)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related-party notes payable 370,000 --
Payments on related-party notes payable (370,000) --
Proceeds from notes payable 100,000 96,459
Payments on notes payable (268,625) (44,464)
Cash overdraft 7,729 --
Common stock issued for cash 1,300,000 964,120
Offering costs (57,557) --
------------ ------------
Net Cash Provided by Financing
Activities 1,081,547 1,016,115
------------ ------------
NET (DECREASE) IN CASH (84,485) (163,935)
CASH AT BEGINNING OF PERIOD 84,485 265,259
------------ ------------
CASH AT END OF PERIOD $ -- $ 101,324
============ ============
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