Contact Information: Contact: Jack Eversull The Eversull Group 972-991-1672 972-991-7359 (fax) E-mail: Email Contact Web Site: www.atsi.net
ATSI Revenues Increase 182%
Second Consecutive Quarter of Positive Cash Flow From Operations
| Source: ATSI Communications
SAN ANTONIO, TX -- (MARKET WIRE) -- November 8, 2006 -- ATSI Communications, Inc. (OTCBB : ATSX )
announced today that the Company's revenues for the three months ended
October 31, 2006 reached $6,540,000, a 182% improvement over revenues for
the three months ended October 31, 2005. As a result, the Company expects
to report its 9th consecutive quarter of record revenues that exceeded the
immediately preceding quarter by $1.2 million. In addition to record
revenue, the Company produced a second consecutive quarter of positive cash
flow from operations and anticipates reporting positive net income for the
1st quarter ended October 31, 2006 when adjusted for non-cash and long-term
incentive compensation for employees and directors. ATSI's future
financial results will continue to reflect the Company's adoption of SFAS
123R accounting for the amortization expense of stock option grants.
ATSI President and CEO, Arthur L. Smith, stated, "Our track record of
successful execution has continued into our current fiscal year as
evidenced by record revenues and cash flow from operations. We continue to
experience a global demand for our international VoIP product as
traditional carriers migrate towards VoIP and emerging VoIP service
providers continue to seek reliable worldwide routes. We processed a record
volume of 105 million VoIP minutes of use ("MOU") during the quarter, but
it's only a sliver of the approximately 72 billion voice MOUs processed in
a quarter on a worldwide basis." Mr. Smith added, "In addition,
management's continued commitment to profitable revenue growth combined
with rigorous expense controls resulted in the second consecutive quarter
of positive cash flow from operations."
ATSI Communications, Inc. operates through its two wholly owned
subsidiaries, Digerati Networks, Inc. and Telefamilia Communications, Inc.
Digerati Networks, Inc. is a premier global VoIP carrier serving rapidly
expanding markets in Asia, Europe, the Middle East, and Latin America, with
an emphasis on Mexico. Through Digerati's partnerships with established
foreign carriers and network operators, interconnection and service
agreements, and a NexTone powered VoIP network, ATSI believes it has clear
advantages over its competition. Telefamilia Communications provides
specialized retail communication services that includes VoIP services to
the high-growth Hispanic market in the United States. 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.
Except for the historical information contained herein, the matters
discussed in this release include certain forward-looking statements, which
are intended to be covered by the safe harbor provided by Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. We have identified forward-looking statements by using words
such as "expect," "believe," "should," "may," "intend," and "anticipate" or
words of similar import. Those statements include, but may not be limited
to, all statements regarding our management's intent, belief and
expectations, such as statements concerning our future and our operating
and growth strategy. Although we believe our expectations are reasonable,
our operations involve a number of risks and uncertainties, and these
statements may turn out not to be true. These risks and uncertainties
include the assumption that we will continue as a going business; our
inability to predict or anticipate changes in regulations or the actions of
domestic and foreign governments; and the continued availability of funds
in amounts and on acceptable terms. More detailed information about ATSI
Communications, Inc. is available in the Company's public filings with the
Securities and Exchange Commission. We believe that the assumptions
underlying the forward-looking statements included in this release will
prove to be accurate. In light of the significant uncertainties inherent
in the forward-looking statements included herein, the inclusion of such
information should not be regarded as a representation by us or any other
person that our objectives and plans will be achieved. All forward-looking
statements made in this release are based on information presently
available to our management. We assume no obligation to update any
forward-looking statements, except as required by law.