Elephant Talk Communications Announces First Quarter 2009 Financial Results and Shareholder Update
May 28 2009 - 2:45PM
PR Newswire (US)
- Total Assets Increase to $20.3 Million SCHIPHOL, The Netherlands,
May 28 /PRNewswire-FirstCall/ -- Elephant Talk Communications, Inc.
(OTC:ETAK) (BULLETIN BOARD: ETAK) , an international telecom and
multimedia content distributor specializing in carrier grade mobile
enabling platforms, announced first quarter 2009 financial results
on May 20, 2009 and is providing a shareholder update. "Management
is pleased with the results for its first quarter and the strategic
direction in which the Company is headed. Over the past year we
have significantly strengthened our portfolio of service offerings
due to our pending acquisition of ValidSoft and its patented
product services and we expanded our market footprint via
agreements with telecom leaders T-Mobile in the Netherlands and
Vizzavi Espana, a Vodafone Group Company," stated Steven van der
Velden, Chief Executive Officer of Elephant Talk. "There were
significant investments required to build the foundation of our
Company. Our top notch infrastructure is now fully implemented
which will allow ETAK to focus on its strategic growth plan of
increasing market share and expanding our geographic footprint.
Management is confidant that this plan will allow us to grow our
business profitably while enhancing the Company's valuation for
shareholders." Comparison for First Quarter ended March 31, 2009
versus March 31, 2008 -- Revenue for the three months ended March
31, 2009 was $ 9,428,884 compared to $11,757,280 for the same
period in 2008 but remain on the 2009 budgeted target. -- A major
part of the decrease of $2.3 million was caused by the foreign
currency negative translation effect of $1.5 million and a downturn
in revenues from the Middle East due to delayed implementation of
certain key supplier channels in India. Additionally, the Company
experienced a decrease in our Premium Rate Calling Services (PRS)
services, which is the Company's largest revenue generating
service. -- Cost of service for the three months ended March 31,
2009 improved as a percentage of revenue to $9,147,797 compared to
$11,412,511 for the same period in 2008. -- Cost of service include
origination, termination, network and billing charges from
telecommunications operators, out payment costs to content and
information providers, network costs, data center costs, facility
cost of hosting network and equipment and cost in providing resale
arrangements with long distance service providers, cost of leasing
transmission facilities, international gateway switches for voice,
and data transmission services. -- Selling, general and
administrative expenses for the three months ended March 31, 2009
was $1,463,148 compared to $1,756,999 in 2008. -- The decrease in
SG&A between the first quarter of 2009 and 2008 included a
positive translation effect of $137,623. The increased management
& personnel expenses, caused by potential revenue to be coming
on stream, were offset by the decrease in other selling, general
and administrative costs. -- The Company reduced its net loss of
$2.1 million by $500,000 for the first quarter 2009 versus $2.6
million for the same period 2008. The decrease in net loss was
primarily due to lower SG&A expenses as described above. --
Total Assets increased to $20,273,586 from $19,456,073 compared
with March 31, 2008. 2009 Business Outlook Elephant Talk's
strategic growth plan remains on target while it continues its
progress as an international telecom operator and enabler to the
multimedia industry, as well as, to capture added market share
within the $30 + billion global bank fraud market by: -- Subsequent
to the Company's proposed acquisition of ValidSoft, leverage
ValidSoft's anti-fraud patented mobile authentication, transaction
verification capabilities and location based services technology to
provide superior service to the emerging global fraud prevention
markets. -- Recognize initial revenues from ValidSoft which is
expected to become Elephant Talk's highest margin business. --
Expand relationships with T-Mobile, Vizzavi Espana, a Vodafone
Group Company and other major telecom operators, mobile virtual
network operators, banks, and government agencies. -- Increase
primary revenues and margins from prior investment in mobile
capabilities segment. -- Integrate recent acquisitions as the
Company transitions from fixed line service offerings into higher
margin mobile/wireless software and service business. Mr. van der
Velden, commented, "With another $2 million invested in additional
mobile assets and capabilities, on top of the earlier invested $ 30
million, the Company is focused on executing its newly implemented
growth strategy for the remainder of 2009. Going forward the
Company plans to capitalize on its newly formed customer
relationships plus ValidSoft's patented technology, while exploring
additional global growth opportunities. Elephant Talk is now
prepared to secure considerable market share in Europe, the Middle
East and Asia in the future. These new markets will allow us to
increase our market presence, while growing the bottom line. As an
endorsement of our belief in the Company, insiders in have now
invested approximately $40 million into the Company." About
Elephant Talk Communications Elephant Talk Communications is
positioning itself as an international telecom operator and enabler
to the multimedia industry by facilitating the distribution of all
forms of content as well as mobile and fixed telecom services to
global telecommunications consumers. The Company provides
traditional telecom services, media streaming, and distribution
services primarily to the business-to-business (B2B) community
within the telecommunications market where it has a presence. The
Company's global footprint as a fully licensed carrier, supported
by its propriety IN (Intelligent Network) and Billing/CRM (Client
Relationship Management) Systems, has been designed to offer
cutting-edge solutions to the increasingly competitive global
multimedia industry. Elephant Talk's telecommunications platform
eliminates the usual limitations caused by national borders,
networks, devices or media and, therefore, enables its B2B
customers to operate as independent telecom and multimedia
distribution organizations. Elephant Talk is also a developer for
mobile telecom and content distribution solutions; and, as a Mobile
Virtual Network Enabler (MVNE), the company has positioned itself
as the premier outsourcing partner for both Mobile Network
Operators (MNO's) as well as for Mobile Virtual Network Operators
(MVNO's). At the same time, Elephant Talk assists its MNO partners
to more efficiently provide a broad range of sophisticated services
to their own existing base of MVNO's. Elephant Talk is positioning
itself as the preferred MVNE partner of the larger, global Mobile
Operators and currently operates sophisticated networks in over a
dozen markets in Europe, Asia Pacific, and the Middle East. The
Company was ranked fifth on the Orange County 2008 Deloitte
Technology Fast 50. For more information, visit:
http://www.elephanttalk.com/. Forward-Looking Statements Certain
statements contained herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current
expectations, estimates and projections about the Company's
industry, management's beliefs and certain assumptions made by
management. Readers are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict. Because such statements involve risks and
uncertainties, the actual results and performance of the Company
may differ materially from the results expressed or implied by such
forward-looking statements. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking
statements. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made here; however, readers
should review carefully reports or documents the Company files
periodically with the Securities and Exchange Commission. Contact
Elephant Talk Communications, Inc. Mr. Steven van der Velden Tel: +
31 20 653 59 16 E-mail: http://www.elephanttalk.com/ Or Alliance
Advisors, LLC Mr. Thomas Walsh Tel: (212) 398-3487 E-mail:
DATASOURCE: Elephant Talk Communications, Inc. CONTACT: Mr. Steven
van der Velden of Elephant Talk Communications, Inc., +
31-20-653-59-16, ; or Mr. Thomas Walsh of Alliance Advisors, LLC,
+1-212-398-3487, Web Site: http://elephanttalk.com/
Copyright