XFONE Announces Third Quarter 2005 Results
Revenue for Nine Months Up 37%
November 14, 2005
LONDON, Nov 14, 2005 /PRNewswire-FirstCall via COMTEX/ -- XFONE, Inc. (Amex: XFN) ("XFONE" or "the Company"), an international diversified communications services company, today reported its third quarter financial results for the three and nine months ended September 30, 2005.
Financial Highlights for the Three Months Ended September 30, 2005 Compared to the Three Months Ended September 30, 2004 Reflected in British Pounds (convenience translation into U.S. Dollars):
- Revenues increased 26% to 3,419,183 pounds (US$6,012,634) from 2,704,934 pounds (US$4,756,626)
- Gross profit margins on revenues increased to 32% compared to 26%.
- Operating Profit increased to 73,479 pounds (US$129,214) from a loss of 105,440 pounds (US$185,890) on the third quarter of 2004.
- Net loss increased from a loss of 72,879 pounds (US$128,158) for the three months ended September 30, 2004 to a loss of 118,803 pounds (US$208,915) for the three months ended September 30, 2005, primarily due to a one time loss of 181,055 pounds (US$318,385) related to the effects of Hurricane Katrina.
- Net income, excluding the one time Hurricane Katrina effect, increased to approximately 62,252 pounds (US$109,470).
- Losses per share were 0.017 pounds (US$0.030) compared to -0.010 pounds (-US$0.0176) on the third quarter of 2004.
- Our Israeli "start up" subsidiary, Xfone 018 Ltd., achieved approximately breakeven EBITDA and a net loss of 21,490 pounds (US$37,790).
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Financial Highlights for the Nine Months Ended September 30, 2005 Compared to the Nine Months Ended September 30, 2004 Reflected in British Pounds (convenience translation into U.S. Dollars):
- Revenues rose 37% to 9,912,515 pounds (US$17,431,158) from 7,244,644 pounds (US$12,739,706
- Gross profit margin on revenues improved to 33% of revenues, compared to 28% in 2004.
- Operating Profit increased to 144,643 pounds (US$254,356) from 128,789 pounds (US$226,475).
- Net income decreased from 101,049 pounds (US$177,695) for the nine months ended September 30, 2004 to a net loss of 15,469 pounds (US$27,202) for the Nine Months Ended September 30, 2005, due to the aforementioned continued investment in the build-up of the Company’s Israeli-based international long distance carrier business and a one time loss of 181,055 pounds (US$318,385) related to the effects of Hurricane Katrina.
- Net income, excluding the Israeli "start up" losses and Hurricane Katrina effects, increased to approximately 394,757 pounds (US$694,180).
- Losses per share were 0.002 pounds (US$0.0035) compared to a diluted profit per share of 0.010 pounds (US$0.01758) for the nine months ended September 30, 2004.
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Commenting on the third quarter results, Guy Nissenson, President and Chief Executive Officer of XFONE, stated, "Sadly, the main event of this quarter was Hurricane Katrina which hit Louisiana and Mississippi. Our hopes and prayers are with the people who were devastated by this disaster. The storm hit at the heart of operations in Louisiana and Mississippi and although conditions were terrible, the staff continued to work to keep and restore communication in the hard-hit areas and helped the relief efforts. I'm extremely proud of our staff in Mississippi and the employees of I-55 in Louisiana for their dedication and courage throughout this crisis. We already feel the quick recovery of the economy in the region, we are confident in the future prosperity of this region and we are pleased that, with the I-55 acquisitions which still have to be consummated, the Louisiana-Mississippi area is becoming our most important market. Hurricane Katrina caused Xfone USA, our wholly owned US Subsidiary, losses in revenues and equipment and currently, with the exception of some areas in the Gulf Coast, our operations are completely back to normal."
Continuing, Mr. Nissenson added, "We are pleased with the third quarter results achieving strong growth and higher profit margins. We are especially encouraged with our Israeli-based subsidiary, Xfone 018, which after 3 quarters of operations have already achieved a breakeven EBITDA. The Israeli operations are not far from reaching an overall profitability. We strongly believe that the I-55 transactions combined with the current trend in our UK, US and Israeli operations set the base for a successful 2006."
Convenience translation into US $ 14-Nov-2005
Full Financial Information Available on American Stock Exchange
Website: www.amex.com
Symbol: XFN
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers worldwide. For the Company’s website, please visit: www.xfone.com
This press release contains forward-looking statements. The words or phrases "should," "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." The Company's financial results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this press release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, and license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
| For More Information,
Please Contact: |
| U.S. IR Contact |
Israel IR Contact |
Xfone Contact |
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: 1-203-972-9200
E-mail: jnesbett@institutionalms.com
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Zvi Rabin
Kwan Communications
Tel: (Israel) +972 50 560 0140
E-mail: zvi@kwan.co.il |
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: niv@xfone.com |
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