Contact Information: Contact: Jack Eversull The Eversull Group 972-378-7917 972-378-7981 (fax) E-mail: Web Site: www.atsi.net
ATSI Provides Update on Recent Initiatives
| Source: ATSI Communications
SAN ANTONIO, TX--(Marketwire - June 11, 2009) - ATSI Communications, Inc. (OTCBB : ATSX )
today provided an update on the Company's 3rd fiscal quarter initiatives to
remedy the challenges that were primarily created by the weak economy
during the 1st and 2nd fiscal quarters.
As previously reported, ATSI's market shift towards improved quality for
global VoIP services required the Company to hold its suppliers to a higher
standard on international routes. During the third quarter of FY2009, the
Company began a rigorous effort to improve call quality and the average
call duration ("ACD") of calls processed on its network. These measures
included eliminating vendors from its routing and streamlining many of the
routes offered to its customers. As of April 30, 2009, the Company had
eliminated 20% of its vendors which resulted in the exclusion of 24
underperforming vendors from its global routing. In addition, on
individual routes where call statistics fell to unacceptable levels, the
Company blocked VoIP traffic. These actions have already produced the
benefits anticipated including a 55% improvement in ACD quarter over
quarter. The Company expects that the improvement in ACD will positively
influence the business long-term and favorably impact future revenues as
each completed call will represent a larger number of billed minutes.
During the 3rd quarter, the Company deployed a VoIP technology platform to
introduce new and enhanced VoIP services that includes fully hosted IP/PBX
services, IP trunking, call center applications, prepaid services, and
customized VoIP solutions for specialized applications. In May, the
Company provisioned its first account on the enhanced platform consisting
of a VoIP network to 154 cities for a Fortune 500 company. The network
provided includes an interactive voice response auto attendant, call
recording, simultaneous calling, voicemail to email conversion, and
multiple other IP/PBX features in a hosted environment. ATSI, as an
outsourced VoIP technology enabler, is marketing these new and synergistic
services to other carriers and to enterprise customers through established
channel partners. With a current market value of over $11 billion in this
sector of the industry, management believes there is a significant market
opportunity for ATSI's diversification strategy.
As reported in its 2nd quarter earnings release, the tightening of capital
markets has reduced the credit worthiness of certain existing and
prospective customers. In addition to processing all eligible accounts
through its accounts receivable insurance provider, the Company has
continued enforcing its strict credit policies to minimize risk in a tough
economic climate. Even under its strict credit policy, the Company has
approved several medium and top tier carriers for credit and successfully
increased its customer base by 10% during the 3rd quarter.
Arthur L. Smith, CEO of ATSI, stated, "Despite the tough economic
conditions, we were able to improve on a key business metric in our
industry (ACD) and increase our volume of minutes by 20% month over month
during the 3rd quarter. Although the actions taken impacted revenues, the
improvements indicate we are heading down the desired long-term path of
building a more consistent, stable, and reliable global network. We are
very encouraged by the demand for our new enhanced services introduced
during the 3rd quarter. We expect these higher margin services that
utilize our core network infrastructure to be an important revenue & profit
generator in the future."
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.