Wondering if I should be removing ELEC given
their report on Friday!
eLEC Communications Reports Second Quarter Results With Year-Over-Year Sales Growth of 231% Driven by 508% Growth in Telecom Revenues
NORWALK, Conn.--(BUSINESS WIRE)--July 14, 2000--eLEC Communications Corp. (NASDAQ:ELEC, news, msgs), a provider of integrated communications services to business customers, today announced the results of its operations for the second quarter ended May 31, 2000.
eLEC reported revenues for the three and six-month periods ended May 31, 2000 of $3,156,395 and $5,382,628, respectively, an increase of $2,204,015, or 231%, and $3,715,338, or 223%, as compared to the revenues reported for the comparable periods in 1999. Revenues of the telecommunications division increased by $2,217,969, or 508% and $3,606,149, or 451%, for the respective three-month and six-month periods to $2,654,511 and $4,405,354, as compared to fiscal 1999.
eLEC also reported net losses for the three and six-month periods ended May 31, 2000 of ($1,361,983), or ($0.10) per share, and ($2,010,883), or ($0.16) per share, compared to net losses of ($1,696,094), or ($0.18) per share, and ($3,214,067), or ($0.40) per share, for the comparable prior year periods, which included losses of ($824,442), or ($0.09) per share, and ($1,645,420), or ($0.20) per share, respectively, from discontinued operations.
The gross profit increased for the three and six-month periods ended May 31, 2000, as compared to the respective periods in fiscal 1999, by $533,263 and $1,086,453 to $880,158 and $1,621,935, respectively, or approximately 28% and 30% of revenues.
Paul Riss, eLEC's CEO, stated, "We enjoyed strong year-over-year revenue growth in our telecommunications business of over 500% for the second quarter. We increased our sales and marketing expenditures by over $400,000 in the second quarter, as compared to our first fiscal quarter, and expanded our investment in the facilities and personnel necessary to support our accelerating growth and ATM/DSL network deployment. We expect to see these trends continue during the third quarter as we continue to invest aggressively in our telecommunications business."
"We also experienced a slight narrowing of our gross margins during the quarter," continued Mr. Riss. "This was primarily due to temporarily increased carrier costs related to growth in new UNE-P states as we continue our nationwide UNE-P deployment. We believe this trend will continue through the third quarter. However, we continue to enjoy gross margins well in excess of 30% on our established UNE-P customer base and expect our telecommunications margins to trend up to those levels in the long term as our mature customer base grows." |
