Conference Call Thursday, April 19, 2007 Beginning at 10:00 a.m. EDT
(7:00 a.m. PDT) to Review 2006 Financial Results
LONDON, April 18, 2007 (PRIME NEWSWIRE) -- IT Group Holdings, Inc. (OTCBB:ITGL) announced today its financial results for the fiscal year ended December 31, 2006. The Company is a fast expanding wholesale carrier-operator supplying resellers (service providers) and businesses with low-cost telecommunications lines as well as competitive and high-quality telephone call services including voice, data, value-added services such as SMS, and carrier services such as Voice-over-Internet Protocol (VoIP.
For the year ended December 31, 2006, revenues increased to $22,724,794 from $19,811,296 for the same period in 2005, an increase of $2,913,498 or a 14.7 percent increase from the prior year ended December 31, 2005. The Company attributes this increase to a higher number of resellers (service providers).
Gross profit was $1,353,662 for the year ended December 31, 2006, compared to a gross profit of $1,146,506 for the same period in 2005, representing an increase of $207,156 or 18 percent over the previous year. Gross margins were approximately 6 percent for the year ended December 31, 2006 and up on the year ended December 31, 2005. The Company estimates that gross margins will steadily improve beginning the second quarter of 2007 with the scheduled conversion of existing and new customers to the new switch and the addition of value-added services contributing to estimated higher margins in line with its business plan.
The Company reported a net loss for the year ended December 31, 2006 of $1,044,274 compared to a net profit of $393,978 for the year ended December 31, 2005 or a loss of $0.03 per share. The fiscal year 2006 net loss includes $1,200,000 of costs incurred in legal and professional fees for the merger, depreciation and amortization expense of $119,194 and interest expense of $55,347.
Charlie Yiasemis, CEO and Founder of IT Group Holdings, Inc., stated: "I am very encouraged with the progress we have made over the last 12 months. We completed our merger, closed on a substantial round of financing, enhanced our infrastructure with a large capacity TDM C7 class protocol telecommunications switch, increased our capacity, and enhanced our service offering, while growing revenues by 15%." He continued, "starting the second quarter of 2007 we should see strong revenue growth and increased profitability, as we leverage the groundwork we laid in 2006."
Dr. Fredrik Verkroost, Chairman of IT Group Holdings, Inc., added: "Our focus in 2006 was to lay the foundation upon which we are now able to deliver the various services to our customers, and to offer competitive channels for handling large volumes of telecommunications traffic between the United States and Europe."
For the year ending December 31, 2006, our customers were largely made up of small-to-medium size business users and some residential consumers, and an increasing number of resellers (service providers), following the Company's decision to become a predominantly wholesale supplier of line rental and associated voice minutes. As a consequence, the growth is now obtained from resellers selling to residential consumers, business end-users, and from carrier-to-carrier traffic.
Conference Call and Webcast
IT Group Holdings, Inc. will discuss its 2006 results; on a conference call Thursday, April 19, 2007 beginning at 10:00 a.m. EDT. You can listen to the call by dialing domestically at 800.573.4754 or dialing internationally at 617.224.4325 and using the participant pass code: 53228429. You can also access via a live webcast at: http://www.redchip.com/visibility/investor.asp?symbol=ITGL. A replay of the conference call will be available two hours after the call until April 26, 2007 by dialing domestically: 888-286-8010 or Internationally: 617-801-6888 and entering the following pass code: 54282083.
About IT Group Holdings, Inc.
IT Group Holdings, Inc. (formerly Green Mountain Capital, Inc.) trades through its wholly owned U.K. subsidiary Internet Telecommunications Plc (IT). IT is fast becoming a leading global provider of telecommunications services. In its first full year of business, IT achieved $19.8m in revenues and $0.5m EBITDA in 2005 through its successful and seasoned management team. IT Group Holdings is now established as a fast expanding wholesale carrier-operator supplying service providers and businesses with low-cost telecommunications lines as well as competitive and high-quality telephone call services including voice, data, value-added services such as SMS, and carrier services such as Voice-over-Internet Protocol (VoIP).
Forward-Looking Statements
This press release may include 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. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.