Power2Ship reports revenue increase for 2005 fiscal year

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Power2Ship Inc., a logistics Web-based collaborative marketplace for the freight transportation industry, filed its audited financial statements for the fiscal year ending June 30, in which its consolidated gross revenue increased to about $9.3 million from $2.1 million during its prior fiscal year.

Further, with estimated revenue of $8.2 million for the first quarter of fiscal year 2006 fueled by increases in revenue from its MobileMarket technology and acquisitions, Power2Ship says its annual revenue run rate is more than $32 million.

“In addition to our top line growth, our quarterly gross profit has risen dramatically from approximately $80,000 during the first and second quarters of fiscal 2005 to approximately $550,000 during the fourth quarter and to an estimated $700,000 for the quarter ended September 30, 2005,” says Richard Hersh, Power2Ship’s chairman and chief executive officer. “This has cut our current monthly cash deficit to less than 50 percent of what it was during the first half of fiscal 2005. We continue to pursue a growth strategy of utilizing our patent-pending MobileMarket technology to penetrate logistics markets and to provide solutions for the Homeland Security market.”

Power2Ship also reported that Commodity Express Transportation, its wholly owned subsidiary, had taken over an unnamed van carrier operation located in North Carolina. This transaction is expected to add as much as $3 million in annual revenue with minimal additional overhead expense, Hersh says. “This transaction enables the company to leverage its current operations and moves us that much closer to breaking even,” he says. “We are looking at other acquisition candidates to fuel MobileMarket.”

For more information, go to www.power2ship.com.