FUENGIROLA, Spain, May 21, 2004 (PRIMEZONE) -- Spantel Communications, Inc. (OTCBB:SPAL), a provider of telecommunications services in Spain, filed an extension of time in order to file the 10-QSB for the first quarter ended March 31, 2004. According to the Company, the extension of time was necessary in order for the Company's new auditor, Staley Okada and Partners, to review the financial statements as required. The Company's president, Jose Ramon Basterra said, "We are extremely pleased with our new auditors and feel this slight delay will ensure an accurate filing. As with any major change such as this, it is imperative that our exchange of information and communications are verified so our shareholders receive the proper information in our upcoming unaudited filing."
We have undergone a thorough review of our quarterly financial statements and related accounting policies with our new auditors, Staley Okada and Partners. As part of this review, we have determined to adopt certain revisions to the accounting treatment of our relationships involving the acquisition and accounting of minutes with our recently announced acquisition agreements. We have adjusted our previously announced earnings to reflect the impact of the adjusted items as determined in consultation with our new auditors. The adjustment associated with these matters as well as the refinement of our amortization of deferred subscriber acquisition costs resulted in adjustments to conform to US GAAP. We have reduced first quarter 2004 net income to $461,045 from $661,681 resulting in first quarter EPS of approximately $0.02. These changes are not expected to have any significant impact on our future results of operations."
Commenting further, Basterra added, "These matters relate to accounting for complex agreements, which after consultation with our auditors, we agreed that the adjustments were necessary to clarify the financials in our previous press release. Our earnings over the comparable period have grown by a rate of 380 percent, well ahead of our expectations. We are pleased with our record results for the period and continue our focus on improving our financial position to enhance shareholder value."
Spantel Communications, Inc. is a provider of telecommunications services throughout Spain. To learn more about Spantel, visit the Company's website at http://www.spantel.es .
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among other things, the competitive environment in the telecommunications industry in general and in the Company's specific market areas, inflation, changes in costs of goods and services and economic conditions in general. Those and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.