SOURCE: Rapid Link, Inc.

June 17, 2008 10:47 ET

Rapid Link Announces Strong 2nd Quarter 2008 Financial Results

Net Income Positive, $4 Million Improvement in Working Capital, Acquisition Completed of One Ring Networks, Results Exceed Management's Expectations

OMAHA, NE--(Marketwire - June 17, 2008) - Rapid Link, Incorporated (OTCBB: RPID), one of the leading providers of WiMAX and Communication Services, announced financial results for its second quarter ended April 30, 2008.

SECOND QUARTER FISCAL 2008 HIGHLIGHTS

Net Income of over $400 thousand for the quarter, and approximately $200 thousand fiscal year to date. Over $1 million net income gain from discontinued operations. Earnings per share of $.01 available to common stockholders for the second quarter fiscal 2008.

Working capital improved over $4 million during the second quarter.

Completed acquisition of One Ring Networks.

                                  Three Months Ended
                                        April 30,
                               ------------------------
                                   2008         2007
                               -----------  -----------
Total Revenue                  $ 3,450,350  $ 3,720,098
Gross Profit                   $ 1,126,997  $ 1,158,602
Gross Profit Percentage                 33%          31%
Net Income                     $   442,164  $  (506,458)
Net Income (Loss per Share)    $       .01  $      (.01)

"In this second fiscal quarter of 2008, the company has fully integrated Communications Advantage into our operations, and recently completed the acquisition of One Ring Networks, Inc. As a result of the One Ring acquisition, we further evolve our goal of becoming a provider of communication services via fixed wireless and fiber optic transport of voice and internet," said John Jenkins, Rapid Link's Chief Executive Officer.

"We are pleased to have been able to back up our strong 2007 year-end numbers and earnings with a solid second quarter of fiscal 2008. The financing transactions that we completed during the second quarter will help enable us to grow through both organic means and strategic acquisitions. Improvements in our working capital position and recent acquisitions are helping the Company to implement its strategic growth model. We are beginning to see positive operating results and have set our sights on realizing an aggressive yet attainable growth model for the balance of our fiscal year," stated Chris Canfield, Rapid Link's President and Chief Financial Officer.

                                                     Three Months Ended
                                                           April 30,
                                                  ------------------------
                                                      2008         2007
                                                  -----------  -----------
Revenues                                          $ 3,450,350  $ 3,720,098

Costs and expenses:
  Costs of revenues                                 2,323,353    2,561,496
  Sales and marketing                                 193,406      307,391
  General and administrative                        1,063,053      841,698
  Depreciation and amortization                       268,432      235,619
                                                  -----------  -----------
                                                    3,848,244    3,946,204
                                                  -----------  -----------

Operating loss                                       (397,894)    (226,106)

Other income (expense):
  Noncash financing expense                           (79,928)    (284,473)
  Interest expense                                    (74,418)     (70,669)
  Related party interest expense                      (64,800)     (58,491)
  Foreign currency exchange gain                       (2,796)       2,442
  Other                                                     -            -
                                                  -----------  -----------
                                                     (221,942)    (411,191)
                                                  -----------  -----------

Loss from continuing operations                      (619,836)    (637,297)

Discontinued operations
  Gain on disposal of discontinued operations       1,062,000            -
                                                  -----------  -----------

Net income (loss)                                 $   442,164  $  (637,297)
                                                  ===========  ===========

Basic and diluted income (loss) per share:

Loss per share from continuing operations         $      (.01) $      (.01)
Income per share from discontinued operations             .02            -
                                                  -----------  -----------
Net income (loss) per share                       $       .01  $      (.01)
                                                  ===========  ===========

Basic and diluted weighted average
 shares outstanding                                66,987,044   51,750,419
                                                  ===========  ===========

Including non-cash items, net income available to common stockholders for the quarter ended April 30, 2008 was $442,164 vs. a net loss to common stockholders of $637,297 for the same period of fiscal 2007. For the three months ended April 30, 2008, Rapid Link incurred $79,928 in non-cash interest expense, and a gain on disposal of discontinued operations of $1,062,000. Additional non-cash items incurred during the year include depreciation and amortization expense, share-based compensation expense, bad debt expense, and loss on property and equipment.

About Rapid Link

Rapid Link, Incorporated is a Diversified Communication Services company, supplying bundled internet and voice services to Business and Residential customers. Rapid Link offers broadband access via its own facilities to ensure fast and reliable delivery of its content. As a leading licensed WiMAX carrier, Rapid Link is on the cutting edge of this exciting new technology. We are one of the only carriers that can offer an end-to-end solution for our customers without a dependency on any other company's resources.

For more information, visit www.rapidlink.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, risks and uncertainties such as the failure to satisfy contractually agreed upon closing conditions that may delay or prevent the closings of subsequent debt financings contemplated by the applicable agreements; the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the trading price of the Company's common stock reaching levels that would cause funding to occur; the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's products and services; the Company's ability to gain market acceptance for its products and services; the Company's ability to fund its operational growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's reliance on third-party suppliers.

Contact Information

  • Contact:
    Investor Relations
    Rapid Link, Incorporated
    Tel.: 402-392-7561

    Or:

    David Elias
    Investor Relations
    DME Capital
    516-967-0205