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Pervasip Corp.: Pervasip Corp. Reports Second Quarter 2009 Results

^{Published on 2009-07-15 14:20:26, Last Modified on 2009-07-15 14:20:34 - Market Wire}
 

WHITE PLAINS, NY--(Marketwire - July 15, 2009) - Pervasip Corp. (OTCBB: [ PVSP ]), a leading provider of wholesale Voice over Internet Protocol (VoIP) telephone services, today reported financial results for its second quarter ended May 31, 2009.

Pervasip's CEO, Paul Riss, noted, "Our second quarter numbers represent our best quarterly operating results since we became a VoIP provider. In comparison to the first quarter of fiscal 2009, our second quarter gross profit percentage is higher by 16 points and yet our selling, general and administrative costs decreased by $322,105, or 44 percent. As a result, our negative cash flow from operations was reduced significantly and we now project, based upon our current overhead structure, that we can achieve positive cash flow from operations with the addition of 10,000 mobile VoIP lines."

"We have a take-or-pay contractual commitment from a customer to deliver us 10,000 billable mobile VoIP lines by December 2009," continued Riss. "However, based upon discussions with our customer and the publicity we have seen from our customer's marketing entity, which noted it has signed up thousands of new representatives to sell our customer's mobile VoIP product, we do not anticipate we will need to wait until December to add 10,000 mobile VoIP lines."

Loss from operations decreased to ($518,321) for the three-month period ended May 31, 2009 from ($892,333) for the three-month period ended May 31, 2008. Included in the ($518,321) loss from operations were non-cash charges of $265,354 for depreciation, amortization and stock-based compensation expense, as compared to $153,871 for such charges in the quarter ended May 31, 2008.

Net loss for the quarter ended May 31, 2009 was ($4,357,264), or ($0.17) per share, compared to a net loss of ($489,991), or ($0.02) per share, in the second quarter of 2008. The largest component of the loss for the quarter ended May 31, 2009 was a non-cash item from the mark-to-market adjustment of our warrant liability, which resulted in warrant expense of approximately $3,189,000 for the quarter, as compared to warrant income of approximately $622,000 for the three-month period ended May 31, 2008.

Loss from operations decreased to ($1,447,063) for the six-month period ended May 31, 2009 from ($1,735,913) for the six-month period ended May 31, 2008. Included in the ($1,447,063) loss from operations were non-cash charges of $532,438 for depreciation, amortization and stock-based compensation expense, as compared to $310,435 for such charges in the six-month period ended May 31, 2008. Net loss for the six-month period ended May 31, 2009 was ($3,195,412), or ($0.12) per share, compared to a net loss of ($4,280,192), or ($0.17) per share, for the six-month period ended May 31, 2008.

For additional disclosure regarding our operating results, refer to our Quarterly Report on Form 10-Q for the period ended May 31, 2009, which has been filed with the Securities and Exchange Commission.

About Pervasip

Pervasip Corp. (OTCBB: [ PVSP ]), through its wholly-owned subsidiary VoX Communications, delivers wholesale voice over IP (VoIP) telephone services for the residential and small business markets. Leveraging a nationwide VoIP network and internally developed proprietary software and product features, VoX offers a private-label digital voice program sold to cable operators, cell phone carriers, WiMax carriers, CLECs, ISPs and resellers. Pervasip differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems that enable a quick turn-up for service providers at attractive margins. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. In addition, Pervasip offers carrier-type services for voice origination and termination, as well as toll-free and other IP-based services. For more information, please visit [ www.voxcorp.net ] and [ www.pervasip.com ].

Forward-looking statements: This release contains forward-looking statements that involve risks and uncertainties. Pervasip's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, certain risks and uncertainties over which the company may have no control. For further discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in Pervasip's Annual Report on Form 10-KSB for the year ended November 30, 2008 and any subsequent SEC filings.

 Pervasip Corp. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the Six For the Three Months Ended Months Ended May 31, May 31, May 31, May 31, 2009 2008 2009 2008 ---------- ---------- ---------- ----------- Revenues $1,158,910 $1,065,352 $ 565,667 $ 634,648 ---------- ---------- ---------- ----------- Costs and expenses: Costs of services 931,844 1,068,436 408,841 615,386 Selling, general and administrative 1,141,691 1,422,394 409,793 757,724 Stock-based compensation expense 256,469 63,717 126,771 29,130 Depreciation and amortization 275,969 246,718 138,583 124,741 ---------- ---------- ---------- ----------- Total costs and expenses 2,605,973 2,801,265 1,083,988 1,526,981 ---------- ---------- ---------- ----------- Loss from operations (1,447,063) (1,735,913) (518,321) (892,333) ---------- ---------- ---------- ----------- Other income (expense): Interest expense (1,112,717) (464,563) (650,717) (221,085) Interest and other income 2,106 12,401 927 1,448 Change in warrant valuation (637,738) (2,092,117) (3,189,153) 621,979 ---------- ---------- ---------- ----------- Total other income (expense) (1,748,349) (2,544,279) (3,838,943) 402,342 ---------- ---------- ---------- ----------- Net loss (3,195,412) (4,280,192) (4,357,264) (489,991) Other comprehensive income (loss) – Foreign currency translation adjustment 5,169 - 7,220 - Unrealized loss on marketable securities - (24,000) - (9,000) ---------- ---------- ---------- ----------- Comprehensive loss ($3,190,243) ($4,304,192) ($4,350,044) ($498,991) ========== ========== ========== =========== Loss per share ($0.12) ($0.17) ($0.17) ($0.02) ========== ========== ========== =========== Shares used in computation of loss per share 26,289,607 25,835,458 26,335,358 25,835,458 ========== ========== ========== ===========