Dude, these are BAAAAAD financial trends, PALM not standing up on teh bid, stock selling off: "URSUS TELECOM RESULTS FOR 2ND QUARTER ENDED SEPTEMBER 30, 1999
11/5/99 8:47
Business Editors/Technology Writers
SUNRISE, Fla.--(BUSINESS WIRE)--Nov. 5, 1999--
Comparative Minutes Of Use Increase 167%
Revenues Increase 34.6% - Gross Profit Up 32.7%
Ursus Telecom Corporation (Nasdaq/NMS:UTCC) today announced its
2nd quarter results ending September 30, 1999.
For the three months ended September 30, 1999, the Company
reported that revenues increased 34.6% to $9.1 million compared to
revenues of $6.8 million reported for the three months ended
September 30, 1998. Net losses for the current quarter totaled
$395,694, or $.05 loss per share, compared to net earnings of
$61,774, or $.01 earnings per share, posted for the same period in the
prior year.
The Company reported that revenues for the six-month period ended
September 30, 1999 reached nearly $18.6 million, a 40% increase over
revenue of $13.2 million reported for the six month period ended
September 30, 1998. Net losses for the current six-month reporting
period totaled $725,547, or $.10 loss per share, compared to net
earnings of $152,879, or $.03 earnings per share, reported for the
comparable period in 1998.
Gross profits for the current three months ended September 30,
1999 increased 32.7% to $3.2 million compared to gross profits of $2.4
million realized for the three months ended September 30, 1998. For
the six months ended September 30, 1999, the Company reported gross
profits of $6.3 million, a 35.6% increase over gross profits of $4.7
million reported for the comparable six months in the previous year.
According to Luca Giussani, Chief Executive Officer of Ursus
Telecom, "For the past two quarters, management has been making
strategic investment in the expansion of our infrastructure, personnel
and resources, and, of course, the ongoing development and rollout of
our exciting Internet initiative, theSTREAM.com. Our aggressive
investment has begun to reward us with some tangible and dynamic
results. Specifically, theSTREAM.com has attracted many of the leading
global portal sites who have entered into marketing and affiliate
agreements with Ursus. The strong response from these international
companies is very encouraging as we continue to work diligently to
sign more agreements in an effort to intelligently penetrate every
possible market in the world."
Continuing, Giussani added, "Moving forward, we intend to launch
a complete marketing campaign for theSTREAM.com in the third quarter
in connection with these and other potential agreements. Although top
line growth has slowed due to declining prices relative to long
distance reorigination fees, we believe that our strategy to
transition our business to Voice Over The Internet Protocol (VOIP),
using theSTREAM.com as a marketing tool, will spur top line growth and
allow us to continue enhancing our healthy profit margins."
Jeffrey Chaskin, President of Ursus, noted, "Our efforts to
migrate our core business to next generation telecom initiatives, such
as VOIP, have produced favorable returns in markets such as Latin
America, where virtually all of our traffic has been migrated and
positively impacted our bottom line. Our expansion of this plan to the
European markets is well underway with the deployment of our new
gateway switch in Greece and the recently announced affiliate
agreements for theSTREAM.com in the United Kingdom, Sweden, Norway and
Denmark."
- FINANCIAL TABLES TO FOLLOW -
-0-
*T
URSUS TELECOM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
1998 1999 1998 1999
Revenues 6,780,942 9,129,730 13,248,378 18,560,177
Cost of revenues 4,342,394 5,892,611 8,570,263 12,215,283
Gross profit 2,438,548 3,237,119 4,678,115 6,344,894
Operating expenses:
Commissions 868,447 679,897 1,799,120 1,444,890
Selling, general and
administrative
expenses 1,421,087 2,642,215 2,553,369 5,067,039
Depreciation and
amortization 140,615 405,509 228,904 804,342
Total operating
expenses 2,430,149 3,727,621 4,581,393 7,316,271
Operating income 8,399 (490,502) 96,722 (971,377)
Other income (expense):
Interest expense (10,102) (50,962) (20,452) (85,790)
Interest income 143,166 24,608 231,979 48,985
Write down of
investment - - - (75,390)
Gain on sale
of Equipment - 1,026 - 3,426
133,064 (25,328) 211,527 (108,769)
Income (loss)before
provision(benefit)
for income taxes 141,463 (515,830) 308,249 (1,080,146)
Provision (benefit)
for income taxes 79,689 (120,136) 155,370 (354,599)
Net income (loss) $ 61,774 $ (395,694) $ 152,879 $ (725,547)
Net income (loss)
per common Share-
basic and dilutive $ .01 $ ( .05) $ .03 $ ( .10)
Weighted average
shares outstanding 6,500,000 7,404,000 6,110,497 6,977,454
URSUS TELECOM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Assets March 31, 1999 September 30, 1999
Current assets:
Cash and cash equivalents $ 2,406,643 $ 1,960,156
Accounts receivable, net 4,960,510 5,391,313
Prepaid expenses 297,828 293,137
Advances and notes
receivable-related parties 10,843 187,303
Taxes Receivable -- 547,835
Deferred taxes 401,173 436,084
Other current assets 563,615 16,676
Total current assets 8,640,612 8,832,504
Equipment, net 3,677,059 4,276,496
Intangible assets, net 10,180,152 9,872,121
Investment in unconsolidated
subsidiary 207,754 66,871
Other assets, net 337,005 639,025
Total assets $23,042,582 $23,687,017
Liabilities and
shareholders' equity
Current liabilities:
Accounts payable and
accrued expenses $ 4,787,040 $ 5,328,422
Commissions payable 1,066,232 920,307
Current portion of capital
lease obligations 324,166 397,122
Current portion of notes payable -- 136,974
Other current liabilities 328,493 275,475
Total current liabilities 6,505,931 7,058,300
Long term portion of capital
lease obligations 789,430 955,880
Long term portion of
notes payable -- 338,392
Deferred taxes 329,413 471,934
Other long-term obligations 133,500 133,500
Commitment and contingencies
Shareholders' equity:
Preferred stock, $.01 par value,
1,000,000 shares authorized;
1,000 share issued and outstanding 10 10
Common stock, $.01 par value;
20,000,000 shares authorized,
6,600,000 and 6,632,900 issued and
outstanding at March 31,1999
and September 30, 1999,
respectively 66,000 66,329
Additional paid-in capital 12,338,843 12,508,762
Retained earnings 2,879,455 2,153,910
Total shareholders' equity 15,284,308 14,729,011
Total liabilities and
shareholders' equity $23,042,582 $23,687,017
*T
About Ursus Telecom
Ursus Telecom Corporation is a global facilities-based
telecommunications company that provides international services,
including long distance, direct-dial, value-added and Internet-based
services to more than 100,000 customers -- individuals, businesses and
carriers -- worldwide. The Company operates directly and through a
network of agents on five continents and over 45 countries that
account for more than 80% of the World's International traffic. Ursus
Telecom operates switching facilities and points of presence in
Sunrise Florida, Frankfurt, Lima, Buenos Aires, Johannesburg and
Tokyo. Ursus Telecom is the source of theSTREAM.com.
Together with theSTREAM.com as the Company's global marketing and
provisioning mechanism, Ursus believes it is well positioned to
prosper in the next generation of services which combine the Internet,
telephony, fax, data and video services into a single broadband
platform offering a rich multi-media experience to its customers
throughout the world.
Statements in this news release that relate to future plans,
financial results or projections, events or expected performance in
future periods are forward-looking statements and fall within the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. While management wishes to provide readers with reasonable
opinions and viewpoints with respect to the Company's progress,
marketplace acceptance, business opportunities, and fiscal
performance, such statements, opinions and viewpoints are
forward-looking and involve risks and uncertainties, including risks
of changing conditions in the overall economy, the capital markets,
the computer and telecommunications industries, as well as risks of
changing consumer demand and the success of the Company's business
strategies and other factors detailed in the Company's annual and
other reports filed with the Securities and Exchange Commission.
--30--law/mi*
CONTACT: Ursus Telecom Corporation, Sunrise
Jeffrey Chaskin, President, 954/846-7887
Email: jchaskin@ursustel.net
Web site:www.theSTREAM.com
or
Continental Capital & Equity Corporation, Longwood, Fla
Investor/Broker Relations:
Michael H. Irving, 407/682-2001
Email: irv@insidewallstreet.com |
