TXCI NEWS 2nd & 3rd qtr results
Tuesday May 18, 8:06 am Eastern Time
Company Press Release
TotalAxcess.com, Inc. Reports Second and Third Quarter Results
Group V Name Change to TotalAxcess.com -- OTC BB:TXCI
SAN FRANCISCO--(BUSINESS WIRE)--May 18, 1999--TotalAxcess.com, Inc. (OTC BB:TXCI), formerly Group V Corporation, today reported better than expected financial results for the second quarter ended December 31, 1998 and third quarter ended March 31, 1999. These results do not reflect revenues generated by the $9.6 million pre-paid phone card sales reported by the Company and solid profit progression in its telecommunications businesses. During the past two quarters, the Company embarked on an aggressive cost containment program, which included reductions in operational expenses due to cuts in staffing and overhead. The Company sought to reduce telecommunication-related expenses through the installation of system enhancements to reduce per minute costs and achieve greater efficiencies in billing.
''The Company has made notable progress over the past few months expanding its pre-paid and one-plus customer base and improving profitability,'' said Joseph Monterosso, President and CEO. ''The $9.6 million pre-paid phone card business will be hitting in the fourth quarter report ending June 30, 1999. In addition we'll see increased pre-paid business and have greater efficiency and controlled costs as the consolidation of operating units is finalized.''
Second quarter consolidated results: As a result of the acquisition of the Ark-Tel assets, including the Company's switching and debit platforms, effective March 1, 1998, the Company reported revenues of $238,855 compared to no revenues during the same period the previous fiscal year.
Total general and administrative expenses decreased by $10,232 or 3% during the quarter, compared to the same period the previous fiscal year as a result of the Company's controlled expense program instituted at its subsidiary operations.
Professional services decreased by $566,777 or 95% during the quarter compared to the same period the previous fiscal year due to the diminished utilization of outside attorneys and advisors.
Third quarter consolidated results: The Company reported revenues of $191,875 compared to $152,761 or an increase of 26% over the same period last year.
In anticipation of tremendous revenue growth and business expansion in the fourth quarter and future quarters, total general and administrative expenses increased by $126,807 or 52%, compared to the same period last year. However, the use of outside professional services decreased by $141,752 or 64% during the quarter compared to the same period last year.
On March 12, the Company reported a relocation of its switching equipment and debit platforms, as well as a consolidation of its subsidiaries reported April 28. Both activities are expected to be completed during the fourth quarter and will deliver higher product margins and significantly improve overall performance and profitability. On March 19, the Company announced a substantial distribution contract with Blackstone Calling Card, Inc. worth approximately $8.4 million in sales. Supplementary sales are anticipated to occur within the fourth quarter. On April 9, the Company fulfilled $1.1 million in pre-paid sales for Worldwide Prepaid, Inc. Worldwide Prepaid commenced distribution of the cards in mid-April, featuring exceptionally low rates to Mexico, Europe and North America. Revenue for these pre-paid cards will be reported during the fourth quarter.
On March 1, the Company instituted a new sales and distribution program that is anticipated to generate an additional $1.0 million in gross monthly sales to appear during future quarters. The Company's highly competitive country specific pre-paid phone cards are anticipated to produce a considerable profit margin and secure distribution agreements with high volume retail outlets. Recently the Company's leading pre-paid phone cards, the Asia card and the Middle East card, were previewed on WallStreet Interviews.
Stated Joseph Monterosso, ''While we expand our traditional sales and marketing activities, we have simultaneously expanded our Internet presence and E-commerce activities to support the sales and marketing strategies of our telecommunications products including: pre-paid phone cards, one-plus long distance business service, and the Worthy Causes long distance fund raising program. We have also sought to aggressively expand the distribution outlets for both HitLoTTo® and Lottery Insider(TM) Magazine with our web merchandising plans. Our strategic goal is to continue to focus on improving distribution channels for our existing core products while looking to establish a wholesale business segment providing discounted minutes to leading distributors and expand into other vertical markets such as pre-paid cellular.''
A new telecommunications management group has been established to support the Company's growing domestic sales and international business expansion. The primary focus for the management group is the establishment of a wholesale phone minutes business segment within 60 days. The Company has enhanced its systems, functionality and support services and has positioned itself to take advantage of the best possible rate structure to support this objective.
As reported on March 16, the Company has secured sufficient private placement financing, which in addition to the newly received revenue, is expected to offer the requisite flexibility and liquidity to expand its pre-paid marketing and sales activities as well as expedite the development of the wholesale business unit and pre-paid cellular sales activities.
Looking to further the Company's future in Internet Commerce, the Company has accelerated plans to introduce the Virtual HitLoTTo Club Card. The Virtual HitLoTTo Club Card enables lottery players worldwide to access some of the largest US lottery jackpots, including California, Big Game, Florida and Powerball. The Company's marketing plans will enjoin promotional and cross merchandising methods through CPNM/Internet Marketing Consortium's affiliation of leading web retailers currently receiving over 170 million monthly hits. On February 14, the Company announced a joint venture with CPNM/Internet Marketing to jointly promote and market the HitLoTTo Club Card through a series of multimedia efforts. Cable Print Network Marketing (CPNM), of Jenkintown, PA is affiliated with a group of companies comprising one of the largest marketing organizations in the United States.
TotalAxcess.com, Inc. (a publicly traded company OTC BB: TXCI) is a diversified telecommunications company specializing in some of the world's most profitable market segments including one plus, toll free long distance and pre-paid phone card products. |
