Contact Information: Contact: Jack Eversull The Eversull Group 972-378-7917 972-378-7981 (fax) E-mail: Web Site: www.atsi.net
ATSI Reports 3rd Quarter FY2009 Results
| Source: ATSI Communications
SAN ANTONIO, TX--(Marketwire - June 16, 2009) - ATSI Communications, Inc. (OTCBB : ATSX )
today announced results for the third fiscal quarter ended April 30, 2009.
Revenue was $3.6 million for the 3rd quarter and $16.2 million for the nine
months ended April 30, 2009. Gross profit was $199,000 for the 3rd quarter
and $1,239,000 for the nine month period ended April 30, 2009. Adjusted
for non-cash items, Non-GAAP net loss for the third fiscal quarter of 2009
was $304,000 and non-GAAP net loss for the nine months ended April 30, 2009
was $365,000. The Company incurred $114,000 in non-cash expenses during
the quarter ended April 30, 2009 and $450,000 on a year to date basis for
the current fiscal year. Non-cash expenses incurred include depreciation,
amortization, interest, bad debt, and stock based compensation. Operating
Income for the quarter was decreased due to uncollectible accounts being
charged to allowance for bad debt expense. The Company's cash position
remained strong with $1.4 million in cash and cash equivalents at the end
of the period.
The key factors negatively impacting the Company during the first half of
the year continued into the 3rd quarter. Results were also affected during
the most recent quarter by the Company's initiative 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. These actions
have already produced a significant improvement in average call duration
("ACD") when comparing January 2009 to April 2009. The Company also
experienced a 20% month over month increase in volume of minutes during the
3rd quarter when comparing February 2009 to April 2009.
Arthur L. Smith, CEO of ATSI, stated, "Although the actions taken during
the period had a negative impact on our financial performance during the
quarter, we are confident these initiatives will lead to long-term
operational and financial improvements. Future improvements will also
include other cost cutting measures we are evaluating as part of our
continued effort to reduce expenses."
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally
accepted accounting principals, or GAAP, ATSI uses non-GAAP measures of
operating income (loss), net income (loss) and income (loss) per share,
which are adjustments from results based on GAAP to exclude non-cash
expenses, including non-cash stock-based compensation in accordance with
SFAS 123R. ATSI's management believes the non-GAAP financial information
provided in this release is useful to investors' understanding and
assessment of ATSI's on-going core operations and prospects for the future.
The presentation of this non-GAAP financial information is not intended to
be considered in isolation or as a substitute for results prepared in
accordance with GAAP. Management uses both GAAP and non-GAAP information in
evaluating and operating business internally and as such deemed it
important to provide all this information to investors.
Net income 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.
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.