Spantel Communications, Inc. First Quarter Continues Revenue Growth as Net Income Rises 447%
April 15 2004 - 2:30PM
PR Newswire (US)
Spantel Communications, Inc. First Quarter Continues Revenue Growth
as Net Income Rises 447% FUENGIROLA, Spain, April 15
/PRNewswire-FirstCall/ -- Spantel Communications, Inc. (BULLETIN
BOARD: SPAL) , a telecommunications provider in Spain, today
announced its preliminary operating results for the first quarter
ended March 31, 2004. The Company saw significant improvement in
many areas versus the first quarter of 2003 with net income soaring
447% to record levels of $661,681 versus $120,833 and sales
increasing 33% to $5,087,930 from $3,830,997. Gross profit margin
of 47.4% of revenue was up 5.7 percentage points from last year's
levels. The strong quarter was driven by robust sales attributable
to the agreements entered into earlier this year by the company.
These agreements provided Spantel with an immediate increase in
sales and profits, without a significant increase in operating
expenditures due to better network utilization. Management
Perspective According to Spantel's President, Jose Ramon Basterra,
"We are very optimistic about the future of our company after five
consecutive profitable quarters. Our improved financial position
has greatly enhanced our ability to concentrate on a growth
strategy centered on acquisitions rather than relying solely on
traditional marketing approaches we have used in the past." Mr.
Basterra went on to say, "As the telecommunications industry within
Spain consolidates, it will continue to create many desirable
opportunities for us to aggressively target. Several of the
secondary carriers and resellers who have a niche market have been
unable to achieve profitability or lack the cash flow required for
growth making them ideal candidates for Spantel. "The company also
is able to market our services to many of these candidates who do
not meet our acquisition criteria. We have a proprietary billing
system, our own network and other services that will enable them to
become competitive and profitable. In either situation, we have
positioned ourselves to capture the traffic which will ultimately
reduce many of our costs and increase our profitability. "The
Company will continue to focus on acquisitions and network
agreements as the primary sources for growth," says Mr. Basterra.
"We are very pleased with our recent accomplishments and remain
committed to making every effort in order to bring value to our
shareholders." Spantel Communications, Inc. is a provider of
telecommunications services throughout Spain. To learn more about
Spantel, visit the Company's website at http://www.spantel.es/.
Except for historical information contained herein, the statements
in this release are forward-looking and made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements involve known and unknown risks
and uncertainties, which may cause the Company's actual results in
future periods to differ materially from forecasted results. Those
risks include, among other things, the competitive environment in
the telecommunications industry in general and in the Company's
specific market areas, inflation, changes in costs of goods and
services and economic conditions in general. Those and other risks
are more fully described in the Company's filings with the
Securities and Exchange Commission. Contact: Mr. Robert Carlin
+1.804.967.9665 & +34.607.51.49.06 This release was issued
through eReleases(TM). For more information, visit
http://www.ereleases.com/. DATASOURCE: Spantel Communications, Inc.
CONTACT: Mr. Robert Carlin, Spantel Communications,
+1-804-967-9665, +34.607.51.49.06, Web site: http://www.spantel.es/
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