Science & Technology
Science and Technology
Science and Technology
Wed, May 26, 2010
Tue, May 25, 2010 Flint Telecom Group Announces Third Fiscal Quarter Results
OVERLAND PARK, KS--(Marketwire - May 25, 2010) - Flint Telecom Group, Inc. (
The key highlights of the quarter are:
Revenues for the nine months ended March 31, 2010 increased 75% to $30,414,547 as compared to $17,432,765 for the nine months ended March 31, 2009. Revenues for the three months ended March 31, 2010 decreased 55% to $5,025,631 as compared to $11,220,472 for the three months ended March 31, 2009. The reduction in quarterly revenues reflects the closure of certain loss making units as previously announced. The Company continues to focus on adding new customers and new partners to drive revenues in the core higher margin businesses.
Gross margins for the quarter ended March 31, 2010 were $163,537 compared to $354,569 the previous quarter. The decrease in aggregate gross margin is a result of the decrease in revenue during the comparative period. Gross margin percentages increased from 3.15% to 3.25% reflecting management's continued focus on improving margins and focus on working to deliver positive operating cash flow. For the nine months ended March 31, 2010, gross margins increased by 9600% to $1,550,956 from $15,982 in the same period in 2009. These improvements reflect the successful implementation of management's previously stated key objectives of developing higher margin products and services within the channel.
EBITDA losses widened to $2,070,630 for the quarter ending March 31, 2010, up from $584,896 for the previous quarter ending December 31, 2009. The increase is primarily due to one-time, non-cash, stock compensation charges of approximately $1.5 million. The Company increased bad debt provisions by $211,402 as a result of the restructuring of the business. Excluding these non-recurring charges EBITDA improved from the previous quarter by $210,668 reflecting the lower operating costs post restructure. EBITDA improved by $4.2 million for the nine months ending March 31, 2010 as compared to the nine months ending March 31, 2009.
Cash operating costs for the three months ended March 31, 2010 were down by 29% to $637,254 from $904,531 for the quarter ended December 31, 2009. For the nine months ended March 31, 2010 cash operating costs were down 10% from the nine months ending March 31, 2009. This improvement is a result of the impact of the business restructuring that occurred during the quarter.
Following the completion of the operational restructuring, the Company has taken a total one-time charge of $12.2 million impairment of goodwill and other costs for discontinued operations in addition to the related operational costs outlined above.
Vincent Browne, Flint Chairman and CEO, commented, "This quarter was really one of restructuring and reshaping the business going forward which we have now completed. This leaves us with a business transitioning to higher margin products in the telecom technology and services markets that we serve. The operational restructuring costs we have taken provide a balance sheet on the operational and asset side from which to build value going forward. We continue to work with our debt holders and are hopeful that we will reach positive outcomes to restructure that side of the balance sheet that should allow our share price to better reflect the underlying value in our business."
About Flint Telecom Group, Inc.
Flint Telecom Group Inc. is a fast growing Telecoms Technology Organization with a portfolio of companies that deliver next-generation IP communications Products and Services. The Company was founded by telecom and technology entrepreneurs with a proven track record in building global technology companies. Flint Telecom has grown both organically and through corporate activity and is traded on the OTC Bulletin Board® (OTCBB) under the ticker FLTT.OB. Additional information may be found at [ www.flinttelecomgroup.com ]
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
