SOURCE: Warwick Valley Telephone Company

Warwick Valley Telephone Company

October 27, 2011 09:32 ET

WVT Communications Group Receives Support for Job Creation and Corporate Growth Initiatives From New York and New Jersey State Officials

Following Regulatory Approvals Authorizing the Issuance of Common Stock Associated With the Alteva Acquisition, WVT Adding Jobs Through Growth From Cloud Communications Strategy

WARWICK, NY--(Marketwire - Oct 27, 2011) - Warwick Valley Telephone Company (NASDAQ: WWVY) referred to as WVT Communications Group ("WVT"), a cloud communications company, announced today it has received approvals from the New York State Public Service Commission ("PSC"), the State of New Jersey Board of Public Utilities ("BPU"), and the New York State Telecommunications Association ("NYSTA") relating to the acquisition of Alteva, LLC on August 5, 2011 and the combination of existing strategic operating businesses with the acquired company. The acquisition significantly strengthens WVT's cloud communications platform, which includes leading unified communications and hosted applications for small, medium and large enterprise customers.

"We appreciate New York and New Jersey state officials showing their support for our strategic growth plans, which enabled us to finalize our acquisition of Alteva," said Duane W. Albro, President and CEO of WVT Communications Group. "Thanks to New York Governor Andrew Cuomo, Pat Foye and his State of New York Economic Development staff, New York State Senator Bill Larkin, the PSC and BPU, we have begun transforming our business into a high-growth company that leverages a successful telecommunications legacy in pursuit of building a platform of higher-margin cloud communications services."

Mr. Albro continued, "Part of our plan is to support the growth of our new company by expanding customer service operations in Warwick, retrain and redeploy employees and continue to add to our Warwick workforce to support continued customer growth. This reallocation of work is a critical step in alleviating the need to layoff many of WVT's union-represented workforces in our ILEC business because of the decline in local 'landline' telephone subscribers. At the same time, we have been experiencing continued demand for our unified communications services. We are proud to report that our transformation into a cloud communications company is progressing as planned. The result is that WVT is growing and we are hiring!"

Alteva brings to WVT a cloud-based Unified Communications ("UC") solutions platform that is believed to be North America's largest enterprise hosted Voice over Internet Protocol ("VoIP") provider. As previously disclosed, it is anticipated that the Alteva acquisition will increase WVT's consolidated revenues by approximately 30% on an annual basis, with an even greater percentage improvement in operating cash flow growth, before consideration of cost savings associated with expected integration synergies and the expected increase in business volume.

Pursuant to the terms of the Alteva acquisition that we announced in July, WVT today filed a Current Report on Form 8-K with the Securities and Exchange Commission reporting on the issuance of unregistered shares of WVT's common stock.

About WVT Communications Group
WVT Communications Group is a global full-service cloud communications company with a regional incumbent telecommunications company operating in portions of Orange County New York and northern New Jersey. Through Alteva, USA Datanet, and its other businesses, WVT Communications Group offers local, long distance, Internet, video, network, unified communications, VoIP and other cloud services. Additional information is available at

Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements, without limitation, regarding expectations, beliefs, intentions or strategies regarding the future. WVT intends that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause WVT's actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the geographic regions in which WVT operates; industry capacity; demographic changes; technological changes and changes in consumer demand; the successful integration of WVT's acquired businesses; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; legislative proposals relating to the businesses in which WVT operates; reduction in cash distributions from the Orange County-Poughkeepsie Limited Partnership; competition; or the loss of any significant ability to attract and retain qualified personnel. Given these uncertainties, current and prospective investors should be cautioned in their reliance on such forward-looking statements. Except as required by law, WVT disclaims any obligation to update any such factors or to publicly announce the results of any revision to any of the forward-looking statements contained herein to reflect future events or developments. A more comprehensive discussion of risks, uncertainties and forward-looking statements may be seen in WVT's Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.

Contact Information

  • Company contact:
    Duane W. Albro
    WVT Communications Group
    President & CEO
    (845) 986-2100

    Investor contact:
    Jordan Darrow
    Darrow Associates, Inc.
    (631) 367-1866
    Email Contact