SOURCE: eLEC Communications Corp.

October 23, 2007 16:13 ET

eLEC Reports Third Quarter and Nine Month Results

WHITE PLAINS, NY--(Marketwire - October 23, 2007) - eLEC Communications Corp. (OTCBB: ELEC)

Summary of Recent Accomplishments:

--  97 wholesale contracts signed - seven cable operators, seven CLECs,
    five ISPs, nine data integrators, eight carriers, 33 resellers and 28
    agents
--  New financing in place to fund our business growth
--  69 new wholesale leads from Comptel and ISPCON trade shows this month
--  Nine-month revenues up 539% compared to prior year
--  Quarterly revenues up 509% compared to prior year
--  Sale of wireline business generated significant gain
    

eLEC Communications Corp, an IP-based communications service provider, today announced the results of its operations for the third quarter and nine months ended August 31, 2007.

eLEC's CEO, Paul Riss, noted, "Our revenues continue to grow, demand for our service is high and we are consistently meeting substantial prospective customers who need a SIP-based digital voice solution. We believe our platform is robust and highly scalable, and our opportunities are numerous. In addition, we now have the funding necessary to aggressively target select wholesale markets to pursue additional customers and to continue the strong sales momentum we have been experiencing. Furthermore, our recent funding has given us the financial resources we need to partner with various carriers that can lower our cost of sales and expedite our efforts to become profitable. We are very excited about our prospects and we anticipate that we can continue our rapid sales growth."

eLEC reported revenue of approximately $677,000 for the nine-month period ended August 31, 2007, an increase of approximately $571,000, or approximately 539%, over the nine-month period ended August 31, 2006. For the three-month period ended August 31, 2007, revenues increased by approximately $224,000, or approximately 509%, to $268,000, as compared to $44,000 in revenues for the three-month period ended August 31, 2006.

eLEC reported net income for the third quarter of fiscal 2007 of $971,300, or $0.04 per share, as compared to a net loss of ($437,513), or ($0.03) per share, for the third quarter of fiscal 2006. For the quarter ended August 31, 2007, eLEC reported a gain from discontinued operations of $1,020,790, or $0.04 a share, and a loss from continuing operations of ($49,490), or $0.00 per share, as compared to a gain from discontinued operations of $73,389, or $0.00 per share, and a loss from continuing operations of ($510,902), or ($0.03) per share, for the quarter ended August 31, 2006.

eLEC reported a net loss for the nine months ended August 31, 2007 of ($1,758,625), or ($0.08) per share, as compared to a net loss of ($1,748,933), or ($0.10) per share, for the nine months ended August 31, 2006. For the nine months ended August 31, 2007, eLEC reported a gain from discontinued operations of $838,674, or $0.04 a share, and a loss from continuing operations of ($2,597,299), or ($0.12) per share, as compared to a gain from discontinued operations of $178,823, or $0.01 per share, and a loss from continuing operations of ($1,927,656), or ($0.11) per share, for the nine months ended August 31, 2006.

For additional disclosure regarding eLEC's operating results, refer to eLEC's Quarterly Report on Form 10-Q, which has been filed with the Securities and Exchange Commission.

About eLEC Communications

eLEC Communications Corp., provides an integrated suite of IP-based communications services and offers wholesale broadband voice, origination and termination services, as well as enhanced VoIP telephone service to the small business and residential marketplace. For more information, visit www.voxcorp.net and www.pervasip.com.

This release contains forward-looking statements that involve risks and uncertainties. eLEC's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, certain risks and uncertainties over which the company may have no control. For further discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in eLEC's Annual Report on Form 10-K for the year ended November 30, 2006 and any subsequent SEC filings.

Contact Information

  • For more information, please contact:
    Paul H Riss
    eLEC Communications Corp.
    914-682-0214
    Email Contact