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Telehop Communications Reports First Quarter 2009 Financial Results

^{Published on 2009-05-29 13:11:20, Last Modified on 2009-05-29 13:12:02 - Market Wire}
 

 TORONTO, May 29 /CNW/ - Telehop Communications Inc. (TSXV-HOP) today released its financial results for the first quarter ended March 31, 2009 reporting revenue of $3,477,153 compared to revenue of $4,371,194 in the same quarter 2008. The net loss for the period was $330,704 or $0.02 per share, compared to net loss of $204,540 or $0.02 per share for 2008. We completed the quarter with working capital of $2,001,939 which includes cash of $1,031,069. During the first quarter we have implemented the strategies as outlined in our press release dated April 15, 2009. Quarterly financial summary - - Revenue for the first quarter 2009 declined $894,041 or 20% compared to revenue of the same quarter 2008 attributable predominately to a reduction in our retail long-distance business. - Gross margin as a percentage of revenue was 37.5% compared to 38.1% for first quarter 2008 a reduction of 0.6% and is the result of the competitive nature of our industry. - Operating expenses were decreased by $252,556 or 12.5% from $2,028,821 in 2008 to $1,776,265. For the first quarter 2009 we expected our expenses to be lower as - During the first quarter 2008 we incurred additional expenses of a non-recurring nature which pertained to corporate matters and due to the deteriorating credit position in our subscriber services we increased our bad debt expense. - We have initiated a number of cost reduction programs. - We completed the quarter with $1,031,069 of cash a reduction of $242,515 for the first quarter. A complete financial reporting package is available on Sedar [ http://www.sedar.com ] or by contacting the company. Certain statements in this press release may constitute "forward looking statements" and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any performance or achievement expressed or implied by such "forward looking statements". The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release %SEDAR: 00004365E 

For further information: Company Contact: Mr. Hersh Spiegelman, President and CEO, (416) 494-4490, [ hersh@telehop.com ]