Press Release

SOURCE: Axium Technologies, Inc.

Tuesday, October 9, 2007

 

Axium Technologies releases strong preliminary results for third quarter of 2007

 

PASADENA, CA, September 9, 2007 -- Axium Technologies, Inc. www.axiumtech.net (PINKSHEETS: AXGI) announced preliminary third quarter 2007 sales of $1.2 million, up from zero in the third quarter of 2006 and a 150% increase over the second quarter of 2007. The Company also expects to report profitable results for the third quarter of 2007.

The Company expects to post final and complete results for the third quarter of 2007, as well as results for the first and second quarter of 2007 by the end of October 2007. The delay in reporting the financial results for the first two quarters was due to accounting translation issues revolving around its South Korea-based R&D center. Those issues have been resolved and the Company expects to release future financial reports on a timely basis.

"We are very pleased with third quarter 2007 and year-to-date results and expect our performance to be even stronger in Q4 as our two core products, Graffiti Detection System and Maximum software, gain strong sales momentum from numerous police departments and DVR manufacturers. We will begin to recognize our high gross margin software revenue in October which will drastically improve our profitability," said Mr. Won Soo Chung, the CEO of Axium Technologies.

 

ABOUT AXIUM TECHNOLOGIES INC.

Axium Technologies, Inc. is a leading provider in surveillance security systems software and hardware. The company maintains its corporate presence in Pasadena, CA and its Research and Development Facility in South Korea.

The Company's primary products include MAXIMUM Surveillance Software, which is the key solution providing interoperability for numerous digitalized security and surveillance products from diverse manufacturers. The Company's Digital Video Recorders (DVRs) and Network Video Products (NVPs) are targeted at the Security and Surveillance segment of the gaming industry. The Company's newest product "Tagger Trap " is a state of the art graffiti detection product, which detects and alarms local police of graffiti activity. The estimated cost of graffiti clean up in North America is projected at $1.0 billion annually. Millions of dollars have been budgeted in the past year by large metro police departments to detect and apprehend graffiti taggers.

During 2006, Axium Technologies redeployed much of their resources, both fiscal and headcount, to complete development of its current suite of products. In doing so, its 2006 revenues is expected to reach $1.04 million, with revenues for 2007 presently projected to be $8.8 million, with gross margins of approximately 57% of revenues. The Company is presently reviewing its guidance for 2007 and will issue any upward adjustment warranted by this review, as soon as possible.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Security and Surveillance industry; the positioning of Axium products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Axium Technologies can successfully develop new products and the degree to which these products gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.

 

SOURCE: Axium Technologies, Inc.

www.axiumtech.net

 

CONTACT INFORMATION

 

Corporate Inquiries

Won Soo Chung (wschung@axiumtech.net)

626-351-1200

 

Investor Relations

Brock Malky

724-742-4420