SOURCE: Nettel Holdings

May 15, 2008 09:29 ET

Nettel Holdings Reports 2007 Financial Results and Forward Guidance

Nettel's 4th Quarter Profit Tops Off Record Year of $21.5 Mil in Sales, Year Over Year Sales Growth Exceeds 275%

VANCOUVER, WA--(Marketwire - May 15, 2008) - Nettel Holdings, Inc. (OTCBB: NTTLE) has reported record revenue for fiscal year 2007 of $21,505,000 and its first profitable quarter in Q4. The 4th quarter had a gross profit of $270,000, provided $116,000 in additional net cash flow, and $261,000 of additional pre-paid minutes for re-sale. The 4th quarter positive cash flow was similar to Q1, Q2, and Q3 except that there was no stock expense in the 4th quarter to erase the profit.

Forward Guidance

AVOP

Nettel's AVOP Division accounted for most of the revenue in 2007 and is now starting to grow, as projected a few months ago. Some of the roadblocks hampering the growth have been eliminated. It has been a tough project that took much longer than expected to put together. Now that these obstacles are resolved we expect steady growth from now on.

Talking Technologies

Throughout the past year, and especially the past few months, Talking Technologies has been very productive completing the development of several key projects and creating many new, quality products. Management has been in negotiations with several large companies and organizations that will be marketing the Talking Technologies products and services to their clients and networks.

VOIP Payments Recent developments

We have recently closed on the sale of a replica of VOIP Payments Services to a large Hong Kong-based Telecom company for a large amount of cash and stock. We are currently waiting to receive the initial payment from the buyer.

Tougi

Tougi will be a large revenue and profit generator for Nettel starting Q2 2008. As of today we have received long-term commitments from over 15 domestic and international buyers for over 60,000 Metric Tons worth of HMS 1 & 2 metals valued at over $15 million per month over the next five years. On the supply side, as of today, we have received long-term commitments from suppliers for over 26,000 Metric tons of HMS 1 & 2 per month. Profit margin is currently averaging 10-13 percent and the new contracts should have higher margins. We have already started shipping the HMS 1 & 2 steel over the past several weeks.

"Our buyers' appetite for our scrap metal is growing fast, and we are responding to that need quickly," said Michael Nguyen, Nettel Holdings CEO. "We will continue to work as fast as we can to meet the demand from our buyers."

Michael Nguyen, CEO of Nettel Holdings, Inc., stated, "Tougi is fast becoming a very popular platform for buyers of scrap metals world wide because of the immediate advantages to the buyer and the seller."

Looking ahead

We continue to see 2008 as a year of strong financial performance based on the new contracts and orders we are current working on. Our company is well positioned for long-term growth and profitability, and we remain confident about the future prospects. We believe that the value of our technology will translate into both domestic and international sales growth over the next several years. We have created uniquely helpful products and services that have tremendous value in today's marketplace.

With AVOP and Tougi, we have already made important gains through the first two quarters, improving our business fundamentals, and bringing us closer to our intermediate objectives.

Contact Information

  • Contact:
    Nettel Holdings, Inc.
    Investor Relations
    408-907-2681