The Port contract won and implemented early in the year was successfully completed, and Axcess hasbeen credited for its role in successfully securing the facility and the 34 heads of stateparticipating in the Fifth Summit of the Americas April conference in Trinidad. Systems includevisitor and vehicle tracking, emergency evacuation accounting, internal zonal security, wirelessWMD sensing, various security scanners and other equipment designed to enhance security solutionsand resources. The Company continues to work toward replicating its successes at additional ports,airports and other critical infrastructure facilities worldwide.To leverage its success in Wireless Credential applications the Company introduced itsDotTM Wireless Credential product into the security distribution sales channel as abundled system so existing proximity access control systems can be easily expanded into advancedworkforce management solutions for improving security, safety, compliance reporting and efficiency.Wireless Credentials provide businesses visibility into the location and status of their labor andassets inside their operations.Wireless Credentials have proven to provide near immediate return on investment for customers aspart of the rapidly growing $9 billion worldwide market for access control systems. Axcessannounced in the quarter it has entered into a license agreement with HID Global to use HIDproximity technology in the Axcess’ DotTM Wireless Credential product. Axcess’DotTM Wireless Credential encompasses local location identification, tracking andcontrol capabilities. HID proximity technology is recognized as the industry standard for lowfrequency physical access control. By combining HID Global’s strength in secure credentialing withAxcess’ solutions, a single secure credential can be used to cost-effectively and convenientlysolve additional business problems throughout an enterprise.Axcess’ DotTM Wireless Credential product is designed to enable existing proximityaccess control systems to be expanded easily beyond the front door into advanced workforcemanagement solutions inside for improving security, safety, compliance reporting and efficiency.Wireless Credentials provide businesses real time visibility into the location and status of theirlabor and assets inside their operation. Wireless Credentials also enable numerous applicationsthat have proven to provide near immediate returns for customers across multiple industry segments.Axcess is authorized to use HID technology and applicable patents in its Wireless Credentials underthe Genuine HID TechnologyTM program.MicroWireless communications has been proven to represent the technological sweet spot whereautonomous wireless identification and data transfer are best enabled in very small, low costbattery-powered devices. Regardless of their hardware platform or form factor, devices or tagscommonly called DotsTM operate in their own wireless frequency and are designedspecifically for the unique need, independent from interference and unobtrusive to backbonenetworks. For these uses, MicroWireless eclipses other wireless technologies such as cell phones,EPC-RFID, Ultra-Wideband (UWB), Zig-Bee, Wi-Fi and Bluetooth which are not suited to the automatedmonitoring of personnel and assets in the enterprise because of unacceptable cost, size,reliability, infrastructure and power consumption constraints.The core technology is supported by a strong intellectual property foundation of patents andfilings. The Company believes this portfolio will continue to open up opportunities for IPmonetization and strategic partnerships in the near term and long into the future.Bringing to market the complete set of innovative functions of MicroWireless creates an openarchitecture for multiple sources of data to be acquired to deliver previously inaccessibleinformation 24/7 in real-time. These innovation and growth efforts continue to be supported by ourshareholders and by key financial advisor, Amphion Innovations plc.
 
 

 
**Third Quarter and First Nine Months of 2009 Financial Results**Revenue was $213,164 for the three months ended September 30, 2009 compared to $511,190 for thethree months ended September 30, 2008. Revenue for the Nine months of 2009 was $4,452,681 comparedto $1,175,022 for the same period in 2008. The increase in sales is a result of the TrinidadContract awarded in January 2009. Add-on sales that are considered by the Company to represent aform of recurring revenue was 73% of total sales in the third quarter 2009 and 41% for the ninemonths of 2009.Gross margin was 37% or $79,423 in the third quarter 2009 as compared to 51% or $260,292 in the2008 period, and 62% or $2,775,037 in the nine months of 2009 as compared to 48% or $559,528 in thenine months of 2008. The year to date increase in gross margin was due to a change in product mixas a result of the Trinidad Contract awarded in January 2009.Research & Development (R&D) expenses for the third quarter totaled $257,137, compared to $451,274in the prior year period and $805,736 for the nine months of 2009, compared to $1,858,962 for thenine months of 2008. The decrease in R&D is due to the timing of the development of the nextgeneration RFID product which we continue to expense as it is incurred.Selling, Marketing, General and Administrative (S, M, G & A) expenses for the third quarter totaled$522,149, as compared to $658,558 in the prior year period and $2,183,723 for the nine months of2009, as compared to $2,048,108 for the nine months of 2008. The majority of the increase relatesto an increased selling expense relating to the Trinidad contract.Other expenses for the third quarter of 2009 totaled $53,776, as compared to $100,296 for the prioryear period in 2008 and $173,594 for the nine months of 2009 compared to $392,537 for the ninemonths of 2008. The majority of the decrease relates to the decreased interest expense recorded inconnection with the issuance of warrants to the convertible notes issued during 2008.Net loss for the third quarter of 2009 was $759,348 as compared to $952,815 in the prior yearperiod and $403,447 for the nine months of 2009 as compared to $3,750,020 in the nine months of2008. The decrease in the net loss is mainly related to the increased margin contribution of theTrinidad contract, lower research and development expenses and lower interest expense.Recurring preferred stock dividend requirements for the third quarter of 2009 was $0 and $39,883for 2008 and $95,263 for the nine months of 2009 and $188,430 for the nine months of 2008. Axcessalso recorded a one-time dividend of $558,686 and $171,984 for the preferred stocks issued duringthe nine months of 2008.Net loss applicable to common stock for the 2009 third quarter was $759,348, or $0.02 per share,compared to a loss of $1,164,682 or $0.04 per share, for the third quarter of 2008 and $498,710 or$0.02 per share for the nine months of 2009 compared to $4,669,120 or $0.16 per share for the sameperiod in 2008.**Conference Call**In conjunction with the earnings release, Axcess invites you to listen to its conference callFriday, November 13, 2008 at 12:00 p.m. (Eastern). To participate in the call, domestic callerscan dial (888) 713-4213 and international callers can dial (617) 213-4865 and enter the reservationcode “95282225.” Participants should dial into the call about 10 minutes prior to the start time.For those unable to attend the live conference call, a replay will be available by dialing (888)286-8010 for domestic callers and (617) 801-6888 for international callers and entering the replaycode “56556313.” The replay will be available for one month beginning approximatelytwo hours after the end of the call. There is no charge for participants to access the live eventor replay.
 
 

 
The conference call and replay dial in information is also available at Axcess’ Website atwww.axcessinc.com.**About Axcess International Inc.**Axcess International Inc. (OTCBB: AXSI) provides wireless business activity monitoring solutionsincluding its intelligent *Wireless Credentials*for business encompassing local locationidentification, tracking and control capabilities. Using its patented MicroWirelessTMtechnology platform, the complete system solutions supersede existing manual personnel badges byautomating various workforce management tasks that increase productivity, security, safety andbusiness intelligence. Real-time data from labor activities also enable previously unattainablebusiness intelligence and analytics initiatives. MicroWireless — based on *active RFID*principles— is the economic and technological sweet spot for autonomously-powered low cost, miniature,remote communication devices. Axcess is a portfolio company of Amphion Innovations plc (AIM: AMP).Additional information on Axcess is available on the Company’s Web site at www.axcessinc.com.**Contacts**     Public Relations Axcess Contact Investor RelationsDriver Public Relations Axcess International EPOCH Financial GroupKenni Driver Allan Frank, CFO James Kautz972.978.6455 972.407.6080 888.654.5318kenni.driver@driverpr.com afrank@axcessinc.com jkautz@epochfinancial.comThis release contains forward-looking statements as defined in Section 21E of the SecuritiesExchange Act of 1934, including statements about future business operations, financial performanceand market conditions. Such forward-looking statements involve risks and uncertainties inherent inbusiness forecasts.(tables to follow)Source: Axcess International, Inc.
 
 

 
**AXCESS INTERNATIONAL INC.**