EPHO ePHONE Telecom 2001 Revenues a Record $3.6 Million -- Auditors Remove "Going
Concern" Opinion as Working Capital Deficiency Now a Surplus --
HERNDON, Va., Apr 16, 2002 /PRNewswire-FirstCall via COMTEX/ -- ePHONE Telecom,
Inc. (OTC Bulletin Board: EPHO) a global Internet telephony services carrier for
businesses and individuals, today announced that revenues from operations for
the fiscal year ended December 31, 2001 totaled $3.59 million, an increase of
over 500% from $590,000 recorded at fiscal year-end 2000. The increase in
revenue was attributable largely to the six (6) revenue-generating retail
services programs launched in 2001 as well as the Company's wholesale carrier
business.
Increased sales momentum and the exercise of warrants have enabled ePHONE's
auditors to remove the "going concern" statement previously contained in the
auditor's opinion, reflecting the Company's ability to continue in business for
"at least the next 12 months without the need for additional investment
capital." Significantly, the Company's working capital improved from a
deficiency of ($1.62 million) at December 31, 2001 to a surplus of $570,000 at
March 31, 2002.
The year 2001 was one of complete transformation for ePHONE. Over the course of
the year, the Company installed a new management team under the leadership of
Carmine Taglialatela Jr., revised its strategic plan and built a network capable
of terminating calls throughout the United States and globally. The strategy
transitioned the Company from one based on proprietary technology to one of
leveraging standards-based technology and delivering innovative services to its
customers. The company built its network in only 75 days, with first revenues
generated 15 days after the completion of the build- out.
"We have come a long way in a short period of time. Year 2001 ended very
positively with the majority of revenues for the year generated in the fourth
quarter," commented Carmine Taglialatela Jr., ePHONE President and CEO. "Thanks
to the appointment of an extremely capable management team, the rapid deployment
of our standards-based Telephony network and the strong showing of confidence
from investors, ePHONE is financially strong and poised for dramatic growth. Our
improved financial position has been recognized by our auditors statements
contained in our Form 10-K filing."
The Company's net loss for the year of ($7.021 million) or ($0.28) per share was
also a significant improvement over the previous year's net loss of ($13.701
million) or ($0.94) per share. For the year ended December 2001, the company
used $3.75 million cash for operating expenses, with most of the difference for
this year's net loss attributable to the write-off of the balance of the Array
Telecom License (1.8 million), as well as increased depreciation and
amortization.
About ePHONE Telecom
ePHONE Telecom provides next-generation, voice and data communication solutions
to businesses and residential customers worldwide. The Company provides a
growing suite of innovative retail products and services including branded and
private label pre-paid calling cards, pre-paid domestic calling plans and
leading edge 1+ pre-paid services as well as wholesale (carrier-to- carrier)
solutions. ePHONE's retail products can provide consumers dramatic savings of
50% to 70% versus traditional carriers. ePHONE delivers these services via a
high-quality, scaleable, Tier-1 grade, Cisco-based VoIP network supported by a
24/7 network operating center in Herndon, VA. The Company is focused on
expanding its points-of-presence on a global basis to support every existing and
emerging telephony protocol. For more information on ePHONE Telecom and its
products and services please visit www.ephonetelecom.com.
FORWARD-LOOKING-STATEMENT
Statements in this news release looking forward in time involve risks and
uncertainties, including the risks associated with the effect of changing
economic conditions, trends in the development of the Internet as a commercial
medium and carrier of telephony traffic, market acceptance risks, technological
development risks, seasonality and other risk factors.
For investor information visit www.otcfn.com/epho.
Investor Relations Contacts:
OTC Financial Network
Philip Williams and Flora Wood
1-866-825-3405
info@ephonetelecom.com
MAKE YOUR OPINION COUNT - Click Here
tbutton.prnewswire.com
SOURCE ePHONE Telecom, Inc.
CONTACT: Philip Williams, or Flora Wood, both of OTC Financial Network
for ePHONE Telecom, +1-866-825-3405, info@ephonetelecom.com
URL: ephonetelecom.com
prnewswire.com
Copyright (C) 2002 PR Newswire. All rights reserved.
-0-
KEYWORD: Virginia
INDUSTRY KEYWORD: ITE
TLS
REA
SUBJECT CODE: ERN
*** end of story *** |
