SAN ANTONIO, TX--(Marketwire - December 14, 2009) - ATSI Communications, Inc. (
OTCBB:
ATSX)
today announced results for the first quarter ended October 31, 2009. The
Company reported revenue of $4.9 million and gross profit of $280,000 for
the 1st quarter. Compared to the immediately preceding quarter, revenue
increased by 37% and gross profit improved by 135%. Adjusted for non-cash
items, non-GAAP net loss for the first fiscal quarter of 2010 was $172,000.
The Company incurred $101,000 in non-cash expenses during the quarter ended
October 31, 2009 that included depreciation, amortization, interest, and
stock based compensation.
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
================== ==================
Contact Information: Contact:
Jack Eversull
The Eversull Group
972-378-7917 or 972-571-1624
972-378-7981 (fax)
E-mail:
Web Site: www.atsi.net