HALO Technology Holdings (OTCBB: WARP) a holding company for established enterprise software companies, announced results for the year ended June 30, 2005.
During fiscal 2005, the Company executed a complete reorganization plan which included the replacement of the entire board of directors with three world-class executives, and the reduction of staff in legacy operations. The Company also implemented a new strategic plan which calls for the acquisition and operation of profitable enterprise software companies. The first step in this strategy was completed in January with the acquisition of Gupta Technologies. In July, the Company completed its second acquisition, Kenosia Corporation, and in so doing became a true technology holding company.
"We are pleased with our accomplishments during fiscal 2005. We have worked tirelessly to transform what was a money-losing, struggling software company into a true technology holding company that is firmly on the path to creating significant shareholder value," said Ron Bienvenu, Chief Executive Officer of HALO.
"As we enter the second quarter of fiscal 2006, we have now acquired, or agreed to acquire, a total of seven companies, each of which have generated between 40% and 90% of their revenue from recurring maintenance contracts, for a combined purchase price of less than 3.5x trailing twelve month EBITDA. We continue to seek new opportunities to add great companies to the HALO family, but our shareholders should know that we will do so in a disciplined manner, pursuing acquisitions we expect to be accretive. We also secured a $50 million debt facility to refinance existing debt and which will be used to help fund future acquisitions, thereby reducing dilution for shareholders. We remain completely focused on returning long-term value for our shareholders by generating strong increases in operating cash flow and earnings per share."
For the twelve months ended June 30, 2005, the company reported revenue of $5.1 million and a net loss attributable to common stockholders of $22.9 million.
HALO Technology Holdings owns and operates a portfolio of enterprise software companies. HALO's strategy is to acquire private and public companies with a focus on profitability, product quality, customer satisfaction and retention, and stable growth. The Company uses a combination of debt and equity for its acquisitions, as well as leveraging the balance sheets of target companies, to minimize dilution to its shareholders. The Company is pursuing additional acquisitions that will contribute to a strong increase in operating cash flow and earnings per share. For more information, please visit www.halotechnologyholdings.com.
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