UTCC...is this what you were expecting?
(P.S. First post;Out from the shadows where I've long lingered)
SUNRISE, Fla., Jan 21, 2000 (BUSINESS WIRE) -- Ursus Telecom
Corporation (Nasdaq:UTCC) said today that it expects operating results
for third fiscal quarter of 2000 to be lower than analysts' estimates.
The Company expects to report revenues in the range of $7.2 to $7.3
million for the quarter, which ended December 31, 1999, compared to
$11.0 million for the prior year period ending December 31, 1998. The
Company expects a loss per share for the quarter to be in the range of
20 to 22 cents compared to 0 cents for the prior year period ending
December 31,1998. Total billable minutes of traffic increased 8.3% for
the quarter ended December 31, 1999 compared to the prior year period
ended December 31, 1998.
"The conversion of our legacy business to Packet Telephony has resulted
in a reduction in our revenues. As part of this conversion, we have
reduced our retail prices by 39% since the third quarter ended December
31, 1998 in order to be competitive in this arena of next generation
Enhanced Telecom services," stated Luca Giussani, CEO of Ursus. "While
we were aware that `cannibalizing' our legacy business could result in
an initial reduction of revenues, we believe that this was a necessary
step to restructure our business in a more modern sustainable form, and
posture the Company for increased growth in the IP telephony and
e-commerce markets."
The Company indicated that revenues have been further reduced as it has
shifted its focus from some portions of its traditional legacy business
which it believes presented political, regulatory, and economic risks
associated with providing International Call-Back services to certain
countries such as Lebanon, Russia, and Ecuador. The Company believes
that it has experienced most of the revenue reductions associated with
the conversion of existing markets and anticipates that its growing
number of minutes and new opportunities will result in a growth of
revenue in the near future. Operating results were further impacted by
expenses allocated to the ongoing development and rollout of the
Company's internet initiative, theStream.com. |
