SOURCE: US Starcom Inc.

November 16, 2007 09:00 ET

US Starcom 3rd Quarter Revenues Soar

PERTH AMBOY, NJ--(Marketwire - November 16, 2007) - US Starcom (PINKSHEETS: USTA) announced today that its 3rd quarter revenues increased 243% compared to the 3rd quarter last year, while increasing 142% for the nine-month period compared to last year. Gross profit increased 73% for the 3 month period, and an astounding 636% over the nine month period.

Net income increased 211% for the nine month period compared to last year, while decreasing slightly for the 3rd quarter primarily due to the following non-recurring events:

--  Telephone traffic to Jamaica was down over 2 weeks due to a severe
    hurricane, resulting in over $450k in lost traffic over that time period,
    at our Mundetel Communications subsidiary.
    
--  We decided to carry $68,396 in expenses incurred over 3 months, and
    $177,279 over 9 months in our LaCorp project, to a Discontinued Operation
    Expense Account. Although we made tremendous progress in developing a
    future product line utilizing major Hispanic recording artists, and in
    developing a website that could facilitate the downloading of hundreds of
    thousands of songs, we felt we had to table the project for now to
    concentrate all our attention to our burgeoning telecom and money
    remittance subsidiaries.
    
--  We are had an additional $25k quarterly in depreciation expense due to
    the March acquisition of Mundetel.
    
--  We incurred significant expenses related to the due-diligence process
    done on a several million dollar acquisition which we were considering,
    which we ultimately declined.
    
--  We ramped up our sales force at Mundetel Communications, which should
    result in significant sales increases at that subsidiary in future
    quarters. One sizable new contract began in October.
    

"We feel we have made tremendous strides over the last six months, in building our organization, and focusing our resources on two areas of business with significant potential upside for US Starcom, telecom and money remittance," said John DiDomenico, President of US Starcom. "Our management team has many years of experience and contacts in these areas. The acquisition of Total Net Connex Technologies announced recently more than doubles our capacity for potential telecom traffic, and with the recent additions to the sales force, we feel we can start utilizing much of this additional capacity very quickly. It also will reduce the combined overhead of Tnex and Mundetel by several hundred thousand dollars per year. We feel we have laid the groundwork for a company that could ultimately be many times its current size. We thank all our shareholders for their patience, and want to assure them we will continue our efforts to build shareholder value for years to come. We encourage shareholders to visit www.pinksheets.com for viewing the full 3rd quarter report," said Mr. DiDomenico.

Contact Information

  • Contact:
    Jack Lennon
    US Starcom
    ph: 508-362-4420