TORONTO, ONTARIO--(Marketwired - May 13, 2015) - Tellza Communications Inc. (TSX:TEL) announced its unaudited financial results for the three months ended March 31st, 2015.

Revenue was $60 Million USD compared to $51 Million USD in 2014, growth of 18%. Net Income was ($0.1) million USD compared to net income of $0.3 million USD in 2014. The decrease in Net Income is primarily related to the inclusion of operating costs related to Matchcom acquired in 2014 and an increase in depreciation and amortization related to CAPEX and business acquisitions in 2014 and 2013. EBITDA* was $0.5 million USD compared to $0.8 million USD in 2014, a decrease of 38%. The reduction in EBITDA is related to tighter margins in our core business, and start-up costs related to route dynamix.

"We are experiencing an increasingly competitive landscape in our communications business as long distance services continue to commoditize. This has affected our margins and EBITDA in the first quarter of 2015," said Gary Clifford, Executive Chairman. Mr. Clifford also commented on developments in the Company's Technology business: "We have recently decided to make our technology platform available to third party carriers, thereby creating a new cashflow stream to Tellza, and we are already in discussions with several carriers who are showing interest in adopting our platform for their businesses."

Tellza Communications Inc.
[amounts in thousands of U.S. dollars, except per share information]
Period ended March 31
Cost of revenue57,57349,276
Gross margin2,0642,090
Operating expenses1,5901,290
Depreciation of property and equipment12374
Amortization of intangible assets405295
Stock-based compensation-3
Interest and debt costs1718
Income before income taxes(71)410
Provision for income taxes
Net income and comprehensive income for the year(41)290
Net income and comprehensive income attributable to
Non-controlling interests28-
Earnings per share attributable to shareholders
- basic and diluted(0.00)0.00
Weighted-average number of common shares outstanding
- basic and diluted177,414,614183,631,945

The Company's financial statements and other disclosures are available on SEDAR.

The Company's corporate profile is located at www.tellza/investors.

About Tellza

Tellza is a global communications company operating under several brands including Route Dynamix, Phonetime, Tel3, MatchCom and Tellza Technologies. Tellza is a public company listed on the Toronto Stock Exchange (TEL).

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Tellza's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See which contains all securities files.

*We define EBITDA and Cash Profits as earnings before taxes, depreciation and amortization, stock based compensation, and interest. EBITDA, which is a non-GAAP financial measure, it is a standard measure used in the telecommunications industry to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meaning under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating as such measures may differ among companies and analysts. Below is a reconciliation of "EBITDA" to net income for the periods presented:

2015 2014
Net income and comprehensive income for the year -$ 41.00 $ 290.00
Provision for income taxes -$ 30.00 $ 120.00
Depreciation of property and equipment $ 123.00 $ 74.00
Amortization of intangible assets $ 405.00 $ 295.00
Stock-based compensation $ - $ 3.00
Interest and debt costs $ 17.00 $ 18.00
EBITDA $ 474.00 $ 800.00

Contact Information:

Tellza Communications Inc.
Gary Clifford
Executive Chairman
+647 281 1831

Tellza Communications Inc.
Michael Vazquez
Chief Executive Officer