mPhase Announces Fiscal Year 2001 Second Quarter Results
Company Boosts Revenue Forecast Due to Strength in DSL Components Line Sales;
Record Revenues and Patent Issuance Among Quarter's Highlights
NORWALK, Conn., Feb. 13 /PRNewswire/ -- mPhase Technologies (OTC Bulletin Board: XDSL), the leading designer of broadcast digital television and high-speed data solutions for the telecommunications industry, today announced financial results for the second quarter and first half of Fiscal Year (FY) 2001, ending December 31st, 2000.
As previously announced, revenues for the quarter exceeded the Company's earlier expectations of $2.5 million; final sales totaled $5.2 million. The figure reflects successful market penetration of its POTS (Plain Old Telephone Service) Splitter Shelf and continues a trend begun with the product's introduction late in the FY 2000 third quarter (ended March 31st), when it reported its first ever revenues of $39,585, followed by an increase to $239,891 in that year's final fiscal quarter, and $1.9 million in the FY 2001 first quarter. There were no revenues in the prior year's second quarter as the Company had not yet introduced any products for sale. Revenues for the FY 2001 first half were approximately $7.1 million; the Company did not have any revenues in the FY 2000 first half.
Due largely to expenses associated with the Company's development stage status, including significant year-over-year increases in research and development (R&D), the continued hiring of additional full-time employees and the ramp-up of sales and marketing expenses related to its flagship Traverser Digital Video and Data Delivery System (DVDDS) and the introduction of other DSL-related products, mPhase reported a quarterly net loss of $4.3 million, or a net loss per share of $0.13 based on 32.3 million average shares outstanding, compared with a loss of $3.2 million in the prior year's second quarter, or $0.12 per share, based on 25.9 million average shares outstanding. For the FY 2001 first half, net loss was $10.1 million, and net loss per share was $0.32, based on 31.9 million average shares outstanding, compared to net loss in the corresponding FY 2000 period of $6.0 million and a net loss per share of $0.24, based on 25.4 million average shares outstanding.
Based on revenues reported to date and the Company's analysis of current ordering trends, it has boosted its forecast of FY 2001 revenues from the previous estimate of $10 million to a range of $13-15 million.
"This quarter, we accomplished significant milestones: not only did we report record revenues, but the issuance of the patent covering the Traverser DVDDS was easily the single most important event in the Company's history," said mPhase President and Chief Executive Officer Ronald A. Durando. "Even as we successfully move our Traverser DVDDS into commercialization, we have demonstrated our ability to supply superior carrier class products that are necessary to support the rapidly accelerating rollout of DSL-related services throughout the US and the rest of the world. At the same time, we continued to make significant investments in advancing our sales and marketing efforts, while adding the people and infrastructure required to succeed in our mission of creating value for our shareholders."
Following are milestones and significant events from the quarter:
October
* Announced the successful rollout of a pioneering information delivery
network at the BMW manufacturing plant in Spartansburg, SC;
* Expanded the Company's line of performance-rich products for the DSL
marketplace by announcing the availability of a new Test Access Shelf,
which provides telcos with a low cost solution to test telephone lines
for high-speed DSL services to consumers and businesses;
* Appointed industry veteran Andy Burnett to the position of Regional
Sales Manager for the Western US Region.
November
* Engaged Corporate Solutions Group, LLC, an American Express affiliate,
to serve as strategic business and financial advisor to the Company and
announced the Company's intent to raise additional equity capital;
* Shipped the first Flextronics (FLEX: NYSE)-built Traversers to Hart
Telephone in Hartwell, GA.
December
* Announced issuance of US Patent No. 6,154,772 to Georgia Tech covering
the Traverser DVDDS' ability to deliver MPEG2 broadcast quality video
and high-speed Internet access (either via copper infrastructure or via
a wireless medium), a technology exclusively licensed to mPhase;
* Announced the appointment of Stephen Yadre as Vice President of
Strategic Planning.
Subsequent to quarter's end, the Company announced it has agreed to partner with Bilsa to test the delivery of TV signals over copper in Ankara, Turkey. Also during the period, mPhase continued to attend and present at key industry trade events, including the US Telecom Association conference, DSLcon in Copenhagen, the Kaufman Brothers Emerging Communications Conference and Internet World Fall 2000. In addition, during and subsequent to the close of the quarter, the Traverser technology and the Company's ongoing collaboration with the Georgia Tech Research Institute continued to receive significant attention, including a cover story in Research Horizons magazine, as well as feature stories on the CNN Network and numerous TV stations and publications around the world.
Also following the close of the quarter, mPhase raised approximately $4.7 million in additional capital through a private placement of common stock and warrants. The funds will be used to support continuing R&D related to its Traverser system and DSL components line, as well as sales and marketing expenses.
"Now our focus turns to accelerating our controlled introduction of the Traverser DVDDS at Hart Telephone and an intensified campaign to market our technology and content platforms to other telco customers here and abroad," concluded Mr. Durando. "We look forward to reporting continued progress in executing our plan in coming quarters."
For the complete text of the aforementioned news releases issued during the quarter, investors may visit the Company's primary Web site at www.mphasetech.com.
About mPhase Technologies, Inc.
mPhase Technologies, Inc. (OTC Bulletin Board: XDSL), develops complete solutions for cost-effectively and reliably transmitting broadcast (real time) digital television programming, high-speed Internet access and traditional telephone service over existing copper telephone lines. The company's flagship product, the Traverser Digital Video and Data Delivery System (DVDDS), uses Rate Adaptive Digital Subscriber Line (RADSL) technology to enable telephone companies to simultaneously transmit high-speed Internet access, up to 400 channels of digital television programming and traditional voice services using their embedded copper infrastructure. The comprehensive package offered by mPhase and mPhaseTelevision, including hardware, software and content, provides a complete `turnkey' solution, thereby not only greatly enhancing each telco's opportunity to increase cash flow, but also providing for potential revenues from e-commerce, digital ad insertion and other sources.
The mPhase POTS (Plain Old Telephone Service) Splitter Shelf, which is an essential component of any full-rate DSL (Digital Subscriber Line) or 'G-lite' system employing circuit switch telephony, offers the highest port density available in the world marketplace. With 144 ports in a 23" rack, it offers telcos a critical advantage in saving the limited space at each Central Office (CO) vs. the standard configuration of 96 ports in the same area. The Company's new Test Access Shelf provides a cost-effective way to quickly determine if the `last mile' local loops are adequate for supporting high-speed DSL-related services, including those offered via the mPhase Traverser DVDDS.
Investors may obtain additional information and subscribe to notification services by visiting the Investor Information section at our primary web site at www.mPhaseTech.com, by calling our 24-hour toll-free Investor Hotline at 1.877.411.XDSL (9375) or by contacting the Investor Relations Department at 1.203.854.1343.
Any statements contained in this press release that do not describe historical facts may constitute forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward- looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties.
The factors that could cause actual future results to differ materially from current expectations include the following: fluctuations in customer demand; the Company's ability to manage its growth; the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company's markets; the risks associated with competition; the risks associated with international sales as the Company expands its markets; and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission filings, including but not limited to those appearing under the caption "Risk Factors" in the Company's 10-K and 10-Q federal filings.
Contact:
mPhase Technologies, Inc. Schwartz Communications, Inc.
Michael N D Meek Michael DiLorenzo/Chuck Kabat
203.854.1343 781.684.0770
michaelmeek@mPhaseTech.com mphase@schwartz-pr.com
SOURCE mPhase Technologies, Inc.
CO: mPhase Technologies, Inc.
ST: Connecticut
IN: TLS MLM TVN
SU: ERN
02/13/2001 11:29 EST prnewswire.com |
