SOURCE: CommerceTel Corporation

CommerceTel Corporation

March 30, 2012 13:32 ET

CommerceTel Announces Preliminary Fourth Quarter 2011 Revenues of $0.98 Million, a 415% Increase Over 2010; Files Extension for 2011 Form 10-K Filing

Management to Host Conference Call by Mid-April to Discuss 2011 Financial Results and Outlook for 2012

SAN DIEGO, CA--(Marketwire - Mar 30, 2012) - CommerceTel Corporation (OTCBB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, today announced that it filed Form 12b-25 with the Securities and Exchange Commission on March 30, 2012 to extend the filing of the Company's Form 10-K for the year ended December 31, 2011. Management expects to file its 2011 Form 10-K within the 14-day grace period. The Company also announced preliminary, unaudited revenue results for the fourth quarter and fiscal year ended December 31, 2011.

Fourth Quarter 2011 and FY2011 Preliminary Revenue Results

CommerceTel expects to report revenues for the fourth quarter, ending December 31, 2011, of approximately $0.98 million, an increase of more than 16% from $0.84 million in revenues for the third quarter ending September 30, 2011. Revenues for the full year 2011 is expected to be $2.5M, an increase of 272% year-over-year from 2010. Cash used in Operating Activities in the fourth quarter 2011 is also projected to improve approximately 44% to an estimated $110,000 as compared to the third quarter, ending September 30, 2011, of $194,000.

Restatement of Financials for the First Three Quarters of 2011

On March 26, 2012, management and the Audit Committee of the Board of Directors of CommerceTel concluded that the Company should restate goodwill related charges in connection with its three acquisitions that were completed during the year ended December 31, 2011. The revisions are expected to result in understated goodwill for each of the three acquisitions, understated stock based compensation expense, an understatement of certain derivative liabilities and an understatement of the related expense related to the Company's derivative liability, as reflected in its financial statements for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011.

Because the Company has re-engaged its valuation experts to advise it on the proper valuation of the stock issued in the acquisitions, the exact impact of the restatement on the Company's financial statements is not known at the present time. The Company expects to include the restatements in the Form 10-K which is expected to be filed no later than April 15th, 2012. The Company further expects that the charges, which are unrelated to the Company's cash flow or operations, will be non-recurring.

Conference Call

CommerceTel will host a conference call to discuss its full year 2011 financials results by April 20th, 2012 as well as its outlook for 2012. Details for the call will be announced soon via press release.

About CommerceTel

CommerceTel is an award-winning provider of proprietary mobile marketing technologies and the inventor of Mobivity, a unique, enterprise-grade platform empowering brands to engage mobile consumers via multiple channels. The only system of its kind, Mobivity is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal. For further information visit www.commercetel.com or follow us on Twitter @CommerceTelinc.

Contact Information

  • For additional information, contact:

    Company Contact:
    CommerceTel Corp.
    Dennis Becker
    CEO
    www.commercetel.com
    Phone: 619.725.0990

    Investor Contacts:
    MZ North America
    Mark McPartland
    Email: Email Contact
    Tel: +1-212-301-7130
    Web: www.mzgroup.us