Science & Technology
Science and Technology
Science and Technology
Tue, December 15, 2009
Mon, December 14, 2009 
SAN ANTONIO, TX--(Marketwire - December 14, 2009) - ATSI Communications, Inc. (
Arthur L. Smith, CEO of ATSI, stated, "We are pleased to report quarter over quarter revenue growth and a positive trend that has continued into our 2nd quarter. We also expect to derive the full benefit of 1st quarter expense reductions during the 2nd quarter that combined with an improvement in gross profit should result in positive cash flow from operations for the month of January 2010. Mr. Smith added, "We also made key operational progress during the quarter positioning ATSI as a technology enabler marketing new and innovative VoIP services that includes IP/PBX services, IP trunking, and customized VoIP solutions. The addition of several new corporate customers during the period validates our strategy of marketing these new services through established channel partners."
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principals, or GAAP, ATSI uses non-GAAP measures of operating income (loss), net income (loss) and income (loss) per share, which are adjustments from results based on GAAP to exclude non-cash expenses, including non-cash stock-based compensation in accordance with SFAS 123R. ATSI's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of ATSI's on-going core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors.
Net income before non-cash items is not a term defined by generally accepted accounting principles (GAAP) and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP. The accompanying table includes a detailed reconciliation of net loss reported in accordance with GAAP to net loss before non-cash items.
ATSI Communications, Inc. operates through its wholly owned subsidiary, Digerati Networks, Inc. Digerati Networks is a premier global VoIP carrier serving rapidly expanding markets in Asia, Europe, the Middle East, and Latin America. Through Digerati's partnerships with established foreign carriers and network operators, interconnection and service agreements, and a NextPoint powered VoIP network, ATSI believes it has clear advantages over its competition. ATSI also owns a minority interest of a subsidiary in Mexico, ATSI Comunicaciones, S.A. de C.V., which operates under a 30-year government issued telecommunications license.
The information in this news release includes certain forward-looking statements that are based upon management's expectations and assumptions about certain risks and uncertainties that can affect future events. Although management believes these assumptions and expectations to be reasonable on the date of this news release, these risks and uncertainties may cause actual events to differ material from managements those contained in this news release. The risks and uncertainties include, but are not limited to, continuing as a going concern, availability and cost of our present vendors and suppliers, and absence of any change in government regulations or other costs associated with data transmission over the Internet or termination of transmissions in foreign countries.
ATSI COMMUNICATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Three months ended October 31, 2009 2008 ------------------ ------------------ OPERATING REVENUES: VoIP services $ 4,985 $ 7,136 ------------------ ------------------ Total operating revenues 4,985 7,136 ------------------ ------------------ OPERATING EXPENSES: Cost of services (exclusive of depreciation and amortization) 4,705 6,566 Selling, general and administrative expense (exclusive of legal and professional fees) 368 533 Legal and professional fees 98 67 Bad debt expense - (20) Depreciation and amortization expense 44 43 ------------------ ------------------ Total operating expenses 5,215 7,189 ------------------ ------------------ OPERATING LOSS (230) (53) ------------------ ------------------ OTHER INCOME (EXPENSE): Gain on early extinguishment of debt - 108 Investment loss - (14) Interest expense (43) (34) ------------------ ------------------ Total other expense (43) 60 ------------------ ------------------ ------------------ ------------------ NET INCOME (LOSS) (273) 7 ------------------ ------------------ Net loss applicable to noncontrolling interest 24 - ------------------ ------------------ NET INCOME (LOSS) TO COMMON STOCKHOLDERS $ (249) $ 7 ================== ================== BASIC INCOME (LOSS) PER SHARE TO COMMON STOCKHOLDERS $ (0.01) $ 0.00 ================== ================== DILUTED INCOME (LOSS) PER SHARE TO COMMON STOCKHOLDERS $ (0.01) $ 0.00 ================== ================== WEIGHTED AVERAGE BASIC COMMON SHARES OUTSTANDING 45,504,120 39,677,598 WEIGHTED AVERAGE DILUTED COMMON SHARES OUTSTANDING 45,504,120 40,265,098 NET INCOME (LOSS) TO COMMON STOCKHOLDERS, as reported: $ (249) $ 7 ------------------ ------------------ EXCLUDING NON-CASH ITEMS: ADD: Non-cash stock-based compensation, employees 14 62 Bad debt expense (recovery) - (20) Depreciation and amortization 44 43 Investment loss - 14 Interest expense 43 34 MINUS: Gain on early extinguishment of debt - 108 Net loss applicable to noncontrolling interest 24 - NET INCOME (LOSS) TO COMMON STOCKHOLDERS ------------------ ------------------ EXCLUDING NON-CASH ITEMS: $ (172) $ 32 ================== ==================
