Oct. 23, 2009 (PR Newswire) --
WEST PATERSON, N.J., Oct. 23 /PRNewswire-FirstCall/ -- Interactive Systems Worldwide, Inc. (Pink Sheets: ISWI) provided the public with a corporate update on a variety of subjects.
Financial Condition:
The Company's operations currently do not generate positive cash flow and the Company will have to generate greater revenue or obtain other financing in order to continue its operations after 2009. The Company is in preliminary discussions with a party in an attempt to ameliorate this situation but no assurance can be given that such discussions will result in additional financing for the Company or the terms and conditions on which any such financing might be provided. During the fiscal year that ended on September 30, 2009, the Company took a number of steps to improve its cash flow including negotiating a three-year extension to the contract of its major partner; securing the continued cooperation of several key employees to defer their salaries; the relocation of GIG's UK office to smaller and less expensive space; and the subleasing of some excess space in the Company's West Paterson, NJ offices. Management's priority has been, and will continue to be, to address the Company's liquidity issues and management continues to explore opportunities in that regard. No assurance can be given, however, that the Company will be able to solve its liquidity needs or become cash flow positive in the near future.
Transaction Volumes:
ISWI announced the quarterly transaction volumes (i.e. the "Turnover" and the "Hold") associated with the wagering services provided by Global Interactive Gaming Ltd. ("GIG"), the Company's wholly owned UK subsidiary, for the three month period ended September 30, 2009. The Turnover for this quarter was (GBP)2,843,877. This represents a 19.0% increase over the Turnover for the comparable period last year of (GBP)2,389,830. The Turnover, also called "Handle", is the sum of the amounts wagered under the GIG's service agreements with business partners for its "integrated" solution. The Hold for this period was (GBP)166,224. This represents an 18.3% increase over the Hold for the comparable period last year of (GBP)140,546. The Hold, also called "Gross Win," is the amount retained by the business partners after all winning wagers have been paid.
The Company had previously announced (in August 2008) that it had ceased filing its SEC financial reports for an indeterminate time period due to the Company's lack of financial resources and the anticipated expenses associated with the preparation, independent auditor review and filing of these reports. In January 2009, the Company instituted a program of providing transaction volume on a quarterly basis. The purpose of these disclosures is to provide the investment community with some ability to track the progress of the Company's operations despite the Company being delinquent in its SEC financial reporting.
Also provided are the historical transaction volumes associated with previous quarterly periods commencing with January 2007, which corresponds to the launch of the Company's "integrated" product into live operation (see table below). This data is also available on GIG's website (www.gigltd.com), by clicking "Transaction History" on the Press and Contacts page. GIG's website can also be accessed indirectly from the Company's website (www.isw.com). The website Transaction History will be updated with the last quarter's transaction volume, reported today, shortly. All figures are unaudited.
In the "integrated" solution, GIG's personnel use the SportXction® software to manage certain in-run betting opportunities on behalf of its business partners, who then accept related wagers utilizing their own gaming system. The Turnover and Hold figures below are not directly indicative of GIG's revenue because the fees payable to GIG pursuant to the agreements with its business partners may include a combination of both a revenue share and a monthly minimum. The figures below do not include other sources of revenue for GIG or the Company, such as license fees, software charges, etc. Sports wagering is seasonal. Meaningful comparisons can only be made between comparable periods (year-to-year), not consecutive periods. In addition, some major sports events are not held annually, but are only held only every 2 or 4 years.
GIG Integrated Solution Historical Transaction Volumes
Quarter Ending Turnover Hold Hold %
(GBP) (GBP)
March 31, 2007 1,741,370 46,617 2.68%
June 30, 2007 2,919,954 164,799 5.64%
September 30, 2007 2,579,414 139,396 5.40%
December 31, 2007 4,182,782 217,659 5.20%
March 31, 2008 4,107,835 262,173 6.38%
June 30, 2008 4,354,811 275,430 6.32%
September 30, 2008 2,389,830 140,546 5.88%
December 31, 2008 3,498,132 145,229 4.15%
March 31, 2009 4,603,369 263,045 5.71%
June 30, 2009 5,365,092 278,599 5.19%
September 30, 2009 2,843,877 166,224 5.84%
Totals since Jan 2007 38,586,457 2,099,718 5.44%
Note: All currency figures are in British Pounds Sterling
Sales, Marketing and Development:
In July 2009, the Company announced that it had decided to seek reseller certification from certain hardware providers in order to be able to offer a more competitive and comprehensive IT Solution for its customers, where appropriate, and to be able to pursue "targets of opportunity" that may present themselves from time to time. As a result of this initiative, the Company has recently received a (GBP)380,000 purchase order from a major gaming company for computer equipment. Since the Company is a reseller of such equipment, its revenue is a small percentage of the amount of the purchase order.
Under the leadership of GIG's newly hired Business Development Director, Gareth Humphreys, the Company continues to market the SportXction® Sports Wagering System in those jurisdictions where sports wagering is legal. The Company is in an advanced stage of discussions with several European gaming companies to add additional bookmaking partners to the UK service it provides through GIG. No assurance can be given that agreements with these gaming companies will be signed, or if signed, how long it will take for the Company's services to begin to be utilized in a live environment or how much revenue will be generated for the Company thereby.
About Interactive Systems Worldwide, Inc.
Interactive Systems Worldwide, Inc. (ISWI.PK) has designed, developed and patented a proprietary software system, the SportXction System, which enables play-by-play wagering during the course of live sporting events. ISWI, through its wholly owned subsidiary Global Interactive Gaming Ltd. (GIG), operates the SportXction® System in the U.K., in conjunction with established media and traditional wagering partners. The system can accept wagers from the Internet, handheld wireless devices, interactive televisions, and standalone kiosks. The system can be used for any live broadcast event.
Contacts:
Interactive Systems Worldwide, Inc.
Bernard Albanese
Chief Executive Officer
Phone: 973-256-8181
FORWARD-LOOKING STATEMENTS: The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements, including, but not limited to, whether and when the Company might be able to provide transaction volumes for future quarters and whether or not the Company will obtain the cash resources or financing necessary to continue its operations beyond 2009 and the terms and conditions of any such financing. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. Readers should carefully review the risks described in documents the Company has filed with the Securities and Exchange Commission, including Annual Reports, Quarterly Reports and Current Reports on Form 8-K.
SOURCE Interactive Systems Worldwide, Inc.
