TalkVISUAL Announces First Quarter Results
MIAMI--(BUSINESS WIRE)--May 20, 2003--Mike Rollins, president and chief executive officer of TalkVISUAL Corporation (OTCBB:TVCP), announced today results for the first quarter ended March 31, 2003.
Complete text of the company's quarterly report, which has been filed with the Securities and Exchange Commission on Form 10-QSB may be found on the Internet at www.sec.gov.
TalkVISUAL generated revenue of approximately $1.47 million for the most recent quarter compared to revenue of nearly $1.88 million for the comparable quarter of 2002. Gross profit, which was $416,288 for the most recent quarter versus $507,840 for the comparable quarter last year, increased as a percentage of revenue to 28.4% for the quarter ended March 31, 2003 compared to 27.05% for the quarter ended March 31, 2002.
Cost of sales as a percentage of revenue decreased 23.3% or $319,000 to $1.05 million for the most recent quarter from $1.37 million for the comparable quarter of last year. Rollins attributed the decrease in revenue and cost of sales and the increase in gross profit percentage to a restructuring of the company's business toward residential and commercial traffic and a reduction of the company's reliance on call shop revenue.
The company reported a consolidated net loss of approximately $599,000 or $0.004 per common share (148,725,141 weighted average shares outstanding) for the quarter ended March 31, 2003 compared to a net loss of $751,011 or $0.005 per common share (147,705,211 weighted average shares outstanding) for last year's comparable quarter. The loss for the most recent quarter includes a one-time loss of $50,149 attributable to discontinued real estate operations.
During the quarter, the company eliminated all of its secured debt and greatly reduced its outstanding payables by selling all but 5,516 shares of its common stock interest in YAK Telecommunications and its commercial property in Sacramento, Calif. In addition, the company utilized a portion of the proceeds to execute settlement agreements with several vendors, which will result in the company's recording a $1.2 million gain in the first half of 2003 upon completion of the asset sale of Mundo Express, Inc. or additional debt restructuring.. Efforts toward reducing SG&A continued during the quarter and resulted in an approximate $20,000 decrease in administrative overhead.
"While the first quarter was quite undramatic in terms of total sales, we made progress in a number of important areas," said Rollins. The Company's business and residential revenue base grew 483% to $507,000 in the first quarter of 2003 from $87,000 in the comparable period for 2002. Additionally, the Company completed the installation of its SS7 network and continued to improve its network efficiency and administrative and billing functionalities coinciding with its greater emphasis on the commercial and residential sectors. During the quarter, TalkVISUAL added 576 new customer accounts representing more than 3,300 lines and $91,000 in new monthly revenue.
"We are enthusiastic about the new business revenue represented in our new Internet-based promotional campaign, new selling agents recently having been added to our growing agent network, and our customer care focus aimed at customer acquisition and commercial and residential business retention," said Rollins. "We are well positioned to transition our business mix with a balance sheet and focus never previously enjoyed," he said.
TalkVISUAL Corporation owns and operates a telecommunications network headquartered in South Florida and owns and operates telecommunications retail centers providing communication and related services to businesses and consumers in New York and New Jersey. 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 not strictly historical are forward-looking within the meaning |
