TalkVISUAL Announces Third Quarter and Nine-Month Results; Conversion to Lower-Cost, Higher-capacity Network Positions Company for Expansion Into New Markets
MIAMI--(BUSINESS WIRE)--Nov. 18, 2002--Mike Rollins, president and chief executive officer of TalkVISUAL Corporation (OTCBB:TVCP), announced today results for the third quarter and nine months ended September 30, 2002.
For the most recent quarter, the company generated revenue from operations of approximately $1.8 million compared to revenue of approximately $1.5 million for the comparable period last year. Gross margin increased approximately $239,000 to nearly $494,000 or 26.7% of revenue for the third quarter of 2002 compared to $255,000 or 17.4% of revenue for the comparable period last year.
For the nine months ended September 30, 2002, TalkVISUAL's revenue was up 68.2% to approximately $5.9 million compared to $3.5 million for the first nine months of 2001. Gross margin for the most recent nine-month period was nearly $1.7 million, or 28.6% of revenue, compared to $570,000 or 16.2% of revenue for the first nine months of 2001.
Net loss for the quarter ended September 30, 2002, including a loss of $21,368 attributable to discontinued operations, was approximately $216,672 or $0.0015 per common share (149,216,741 weighted average shares outstanding) versus a loss of $804,761, which included $47,409 attributable to discontinued operations and an extraordinary item of $72,068. Last year's third quarter loss amounted to $0.0078 per common share (102,871,003 weighted average shares outstanding). This was an improvement of 73.1% year to year.
For the nine months ended September 30, 2002, the company recorded a net loss of approximately $1.4 million versus a net loss of approximately $3.5 million for the comparable nine months of 2001, reflecting a 61.5% improvement year to year. The most recent nine-month period includes a loss of $15,620 attributable to discontinued operations and a one-time recognized goodwill impairment loss of $339,208, while the comparable nine-month period of last year includes a loss of $560,017 attributable to discontinued operations. The impairment loss was nearly offset by a one-time $300,000 gain attributable to a vendor settlement.
"Though our customer base expanded during the most recent quarter, revenue growth slowed, primarily due to seasonality and issues associated with a realignment of our network during the period," said Rollins. "We are disappointed in the near-term effects that the network switching had on our bottom line and on our ability to be profitable in the second half of 2002. However, we are confident that as a result of numerous upgrades, increased capacities, and decreased fixed costs associated with the network, we are better positioned to achieve our profit goals and grow our business going forward."
Rollins indicated that during the quarter, the company continued to streamline administrative costs while developing its dealer programs. He said that management remains interested in acquiring target companies in key geographic areas that would complement its growing business, particularly those areas that provide access to Hispanic markets. "We are beginning to achieve certain economies of scale and have created a platform on which to grow our business in subsequent periods. And, though management continued to spend a disproportionate amount of time working through past issues, we expect to have most, if not all, of these issues resolved during the fourth quarter, so that management can concentrate squarely on new business." Rollins said.
TalkVISUAL Corporation owns and operates telecommunications retail centers providing communication and related services to business and individual consumers. Principal services include business and residential long-distance services, long-distance telephone calling in private booths ("call-shop services"), prepaid calling cards, money transfer services and international package delivery. Visit the company's web site at www.talkvisual.com. TalkVISUAL targets key business and consumer market segments in the United States, with a primary focus on Latin American expatriate business and consumer communities.
NOTE: Statements contained in this news release that are not strictly historical are forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. The company makes these statements based on information available to it as of the date of this news release and assumes no responsibility to update or revise such forward-looking statements. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, without limitation, demand for the company's products and services, the company's ability to continue to develop its market, general economic conditions, government regulation, and other factors that may be more fully described in the company's literature and periodic filings with the Securities and Exchange Commission.
CONTACT: TalkVISUAL Corporation
Mike Rollins, 305/572-0575
www.talkvisual.com
or
Jordan Richard Assoc.
Madeleine Franco, 801/463-0305
ir@jordanrichard.com |
