SAN ANTONIO, Nov. 3, 2005 (PRIMEZONE) -- ATSI Communications, Inc. (OTCBB:ATSX) announced today that it has signed an agreement with NexTone Communications for the continued expansion of ATSI's VoIP network. Under the agreement, the Company will expand the port capacity on its NexTone Multiprotocol Signaling Switch ("MSW") and Multiprotocol Session Controller ("MSC") by 65 percent. In addition, ATSI purchased the NAT Proxy ("NPX") product for the expanded system and also extended its term for support services provided by NexTone through November 2006.
ATSI also reports that for the first fiscal quarter ending October 31, 2005, the Company's VoIP traffic increased by 145 percent, when compared to results from the previous year's first quarter. ATSI processed a record volume of nearly 50 million VoIP minutes of use ("MOU") during the quarter, resulting in over 9 million calls coming through its NexTone powered VoIP network. As a result, ATSI will report record revenues for the first quarter FY2006, leading to a fifth consecutive quarter of record revenues since its reincorporation. The Company's network expansion will support continued growth and product diversification in its core VoIP business during FY2006.
Ruben Caraveo, Vice President of Sales and Operations for ATSI, states, "We anticipate the increased capacity will be operational within a week's time, allowing us to continue with our growth trend. The expanded capacity improves our current revenue and margin potential and was necessary to meet our performance objectives for FY2006."
NexTone's NPX product, purchased for its ability to expand ATSI's network capacity, allows broadband users, including consumers and businesses, the ability to connect to ATSI's NexTone system. Today, firewalls and network address translation (NAT) devices deployed within broadband users' home or business do not have the intelligence to fully process real-time voice traffic. NexTone's NPX enables the secure connectivity between broadband users (cable and DSL) and ATSI's network while also overcoming the disruptive technical barrier commonly found within broadband networks.
Vic Bozzo, Vice President of Sales, Americas for NexTone, states, "ATSI has created a truly next generation network. Their ability to keep the call in an all VoIP environment gives them one of the most efficient networks out today and the flexibility to add new services immediately. We believe ATSI's architecture is a model for the future of network design."
ATSI has deployed NexTone's products for the company's VoIP system in San Antonio, Texas. The solution lowers equipment costs, simplifies network operations, and provides faster service turn-up, enabling ATSI to use its VoIP gateways more efficiently and realize CAPEX and OPEX cost savings.
ATSI Communications, Inc. is an emerging global VoIP carrier serving rapidly expanding markets in Asia, Europe, the Middle East, and Latin America with an emphasis on Mexico. ATSI believes that it has clear advantages over its competition through its strategic partnerships with established foreign carriers and network operators, interconnection and service agreements, and its unique concession license in Mexico.
NexTone Communications develops carrier-grade products for delivering scalable control of real-time IP services, such as voice over IP (VoIP). NexTone's solutions enable carriers, service providers, and enterprises to securely, simply, and cost-effectively interconnect networks for end-to-end control and management of IP traffic. NexTone's real-time IP technology is installed by more than 370 service providers and enterprises worldwide to dramatically reduce capital expenditures and deliver ongoing operational efficiencies such as reduced interconnect "turn-up" time and simplified network operations. The company is headquartered in Gaithersburg, Maryland, USA, with domestic and international sales offices worldwide. For more information, visit www.nextone.com.
Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by the safe harbor provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We have identified forward-looking statements by using words such as "expect," "believe," "should," "may," "intend," and "anticipate" or words of similar import. Those statements include, but may not be limited to, all statements regarding our management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and these statements may turn out not to be true. These risks and uncertainties include the assumption that we will continue as a going business; our inability to predict or anticipate changes in regulations or the actions of domestic and foreign governments; and the continued availability of funds in amounts and on acceptable terms. More detailed information about ATSI Communications, Inc. is available in the Company's public filings with the Securities and Exchange Commission. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.