-- Carrier services minutes increased to 564,064,005 from 450,557,632, an
increase of 25%
-- 4 consecutive quarters of net earnings per share
-- Achieved a positive working capital ratio and shareholder equity
during the year
-- ATSI entered into a $5 million accounts receivable financing agreement
with Wells Fargo Bank
-- The Company's Board of Directors approved a $1 million stock
repurchase plan
-- ATSI expanded its IP network capacity with XO Communications that
included doubling its fixed capacity and the ability to increase fixed
capacity by 400% through the on-demand capabilities of XO's Ethernet
services
-- ATSI's auditors removed the Company's going concern opinion during the
3rd fiscal quarter
In addition to the significant achievements for the year, ATSI was recently
selected by Deloitte & Touche, LLP as one of the 2008 50 fastest growing
technology companies in the state of Texas. The selection to the Texas
Technology Fast 50 resulted from the Company's successful revenue growth
from $1.2 million in FY2004 to $42 million in FY2008.
Arthur L. Smith, CEO of ATSI, remarked, "I commend our management team and
employees for exceeding expectations for the year. In addition to
continued revenue growth, we achieved significant milestones related to our
balance sheet that included reaching a positive working capital ratio and
shareholder equity. We recognize that our past growth rates will be
increasingly difficult to achieve organically, therefore, our emphasis will
remain on improving gross profit and cash flow from operations."
Including non-cash items, net income to common stockholders was $440,000
for the year ended July 31, 2008 compared to a net income to common
stockholder of $515,000 for the year ended July 31, 2007. Net income to
common stockholders includes the reversal of previously recorded preferred
dividend expense of $340,000 in FY2008 and $828,000 in FY2007.
Net loss before non-cash items is not a term defined by generally accepted
accounting principles (GAAP) and may not be comparable to other similarly
titled measurements used by other companies. Such non-GAAP measures should
be considered in addition to, and not as a substitute for, performance
measures calculated in accordance with GAAP. The accompanying table
includes a detailed reconciliation of net loss reported in accordance with
GAAP to net loss before non-cash items.
ATSI Communications, Inc. operates through its wholly owned subsidiary,
Digerati Networks, Inc. Digerati Networks is a premier global VoIP carrier
serving rapidly expanding markets in Asia, Europe, the Middle East, and
Latin America, with an emphasis on Mexico. Through Digerati's partnerships
with established foreign carriers and network operators, interconnection
and service agreements, and a NextPoint powered VoIP network, ATSI believes
it has clear advantages over its competition. ATSI also owns a minority
interest of a subsidiary in Mexico, ATSI Comunicaciones, S.A. de C.V.,
which operates under a 30-year government issued telecommunications
license.
The information in this news release includes certain forward-looking
statements that are based upon management's expectations and assumptions
about certain risks and uncertainties that can affect future events.
Although management believes these assumptions and expectations to be
reasonable on the date of this news release, these risks and uncertainties
may cause actual events to differ material from managements those contained
in this news release. The risks and uncertainties include, but are not
limited to, continuing as a going concern, availability and cost of our
present vendors and suppliers, and absence of any change in government
regulations or other costs associated with data transmission over the
Internet or termination of transmissions in foreign countries.
ATSI COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Years ended July 31,
2008 2007
----------- -----------
OPERATING REVENUES:
VoIP services $ 41,961 $ 31,692
----------- -----------
Total operating revenues 41,961 31,692
----------- -----------
OPERATING EXPENSES:
Cost of services (exclusive of depreciation
and amortization, shown below) 38,884 29,521
Selling, general and administrative
expense (exclusive of legal and professional
fees) 2,400 1,625
Legal and professional fees 352 258
Bad debt expense (27) 98
Depreciation and amortization expense 160 99
----------- -----------
Total operating expenses 41,769 31,601
----------- -----------
OPERATING INCOME 192 91
----------- -----------
OTHER INCOME (EXPENSE):
Debt forgiveness income 41 -
Investment loss (16) -
Interest expense (105) (348)
----------- -----------
Total other income (expense), net (80) (348)
----------- -----------
NET INCOME (LOSS) 112 (257)
----------- -----------
LESS: PREFERRED DIVIDEND (12) (56)
ADD: REVERSAL OF PREVIOUSLY RECORDED PREFERRED
DIVIDEND 340 828
----------- -----------
NET INCOME TO COMMON STOCKHOLDERS $ 440 $ 515
=========== ===========
BASIC INCOME PER SHARE TO COMMON STOCKHOLDERS $ 0.01 $ 0.02
=========== ===========
DILUTED INCOME PER SHARE TO COMMON STOCKHOLDERS $ 0.01 $ 0.02
=========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 39,143,748 27,908,044
DILUTED COMMON SHARES OUTSTANDING 39,197,319 28,049,739
NET INCOME TO COMMON STOCKHOLDERS, as reported: $ 440 $ 515
----------- -----------
EXCLUDING NON-CASH ITEMS:
ADD:
Non-cash issuance of common stock and warrants
for services 77 129
Non-cash stock-based compensation, employees 695 473
Bad debt expense (27) 98
Depreciation and amortization 160 99
Investment loss 16 -
Interest expense 105 348
MINUS:
Debt forgiveness income 41 -
Preferred dividend 328 772
NET INCOME TO COMMON STOCKHOLDERS
----------- -----------
EXCLUDING NON-CASH ITEMS: $ 1,097 $ 890
----------- -----------
Contact Information: Contact: Jack Eversull The Eversull Group 972-378-7917 972-378-7981 (fax) E-mail: Web Site: www.atsi.net