AVRI Averox Inc (PK)

Averox Inc. (OTCBB:AVRI) announced results for the first quarter of fiscal year 2009, ended September 30, 2008. All figures are in U.S. dollars. �Revenues for the quarter ended September 30, 2008 were $161,051 compared with revenues of $134,152 for the quarter ended September 30, 2007, an increase of $26,899, or approximately 20%, primarily as a result of an increase in commission income,� stated Mr. Salman Mahmood, CEO. �The cost of revenue was $107,645, or 67% of net revenue for the quarter ended September 30, 2008, compared with a cost of revenue of $217,427, or 162% of net revenue in the corresponding quarter a year ago. The decrease was primarily a result of lower direct costs of telecom equipment and services and as a result of our concentration on higher profit margin service and commission oriented business. General and administrative costs for the quarter ended September 30, 2008 were $137,838, compared with general and administrative costs of $434,671, in the previous year quarter, a decrease of $296,833, or approximately 68%. The decrease in G & A costs was primarily a result of a reduction in personnel and office costs associated with the closure of our Dubai offices, relocation of our offices in Pakistan, and the institution of a cost reduction plan. Net loss for the quarter ended September 30, 2008 was $116,168 compared with a net loss of $515,106 in the first quarter of fiscal 2008,� Mr. Mahmood added. �We are beginning to see a response to our transition from full design and deployment of telecommunications networks to much more focus on software solutions for telecom operators. We plan to continue our approach of working with partners and system integrators as well as developing our own software products such as Provisus�. We acquired a software suite known as Provisus� on August 5, 2008, from Provisus Ltd. Provisus� provides service activation and provisioning technology to telecom operators. We are in the process of bringing enhancements from version 1.0 of the product that will be at par with 3G and 4G compatible technologies, converting it to version 2.0. By the beginning of next year we expect to be able to launch version 2.0 of the product. The Provisus� product is expected to be tested by one of the world's leading mobile (3G/GSM) operators. If the testing is successful, we believe that the operator will license the product and that Provisus� will be attractive to other telecommunications providers. The Provisus� product has worldwide applications for both fixed and mobile telecommunications. However, even if the Provisus� product is successfully tested, it will take at least six to nine months before Averox derives any significant license fees from this product.� �We have also entered the solar and wind powered generators market by offering a range of wind and solar powered generators that can be used to produce clean and inexpensive power for domestic and commercial use. We believe that this market will become a significant part of our business in the future,� Mr. Salman Mahmood, CEO said. � � � � � � � 2008 2007 Change % � Net Revenue $ 161,051 $ 134,152 $ 26,899 20 % � Cost of revenue � 107,645 � � 217,427 � � (109,782 ) -50 % � Gross profit 53,407 (83,275 ) 136,682 -164 % � � General and administrative expenses � 137,838 � � 434,671 � � (296,833 ) -68 % � Income from operations � (84,431 ) � (517,947 ) � 433,516 � -84 % � Other (Income) Expense Interest income (9 ) (2,771 ) 2,762 -100 % Other income (expense) 13,234 0 13,234 100 % Interest expense 153 1,596 (1,443 ) -90 % Currency exchange (gains) losses (1,548 ) 151 (1,699 ) -1125 % (Gain) loss on disposal of asset � 4,650 � � 0 � � 4,650 � 100 % � Total Other Income � 16,479 � � (1,025 ) � 17,504 � -1708 % � Income before income taxes (100,910 ) (516,922 ) 416,012 -80 % � Provision for income taxes � 15,258 � � (1,816 ) � 17,074 � -940 % � Net income $ (116,168 ) $ (515,106 ) $ 398,938 � -77 % � About Averox Inc. (www.averox.com) Averox Inc. (OTCBB:AVRI) is a publicly held independent provider of solutions and services in the domains of Telecommunication Engineering, Telecommunication OSS and BSS and Information Technology. Averox services include offshore product development, application management, project management, program management, telecommunications network deployment, management, optimization and maintenance for small, medium and large enterprises. Averox Inc. has two principal subsidiaries Averox Private Limited and Averox FZ-LLC. This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Averox management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to Averox as of the date of the press release, and it assumes no obligation to update or alter its forward- looking statements whether as a result of new information, future events or otherwise. Further information on risks or other factors that could affect Averox' results of operations are detailed in the filings of Averox with the SEC.