XFONE FIRST
QUARTER REVENUES INCREASE 47% TO $11.5 MILLION WITH A 300%
INCREASE IN NET INCOME TO $444,395
-Growth and Improving Margins Lift
EPS to $0.04 -
May 14, 2007
JACKSON, MS –May 14, 2007 – XFONE, Inc. (AMEX
and TASE: XFN) (“XFONE” or “the Company”), an international
diversified communications services company announced today
its financial results for the three months ended March 31, 2007.
Financial highlights for the three months ended March
31, 2007 compared to the three months ended March 31, 2006:
- Total revenues increased 47% to $11,523,716 from $7,841,245
in the first quarter of 2006.
- Gross profit margins also improved, rising to 55% from
36.3% in the first quarter of 2006.
- XFONE’S operations in the U.K. contributed $6,095,938
to total revenues, a 93% increase from revenues of $3,159,113
in the first quarter of 2006.
- Revenues generated by XFONE 018, the Company’s Israeli-based
operation, totaled $2,008,685 representing a 77.4% increase
over $1,132,420 in the first quarter of 2006.
- XFONE USA revenues were $3,419,093 - a slight decrease
of 3.7% from $3,549,712 in the first quarter of 2006.
- EBITDA increased 171% to $916,447 from $337,870 in the
first quarter of 2006.
- Net income increased 300% to $444,395, or $0.04 earnings
per basic share, from $111,295, or $0.01 per basic share,
in the first quarter of 2006.
As of March 31, 2007, XFONE had $9,897,802 in cash and accounts receivable
and total shareholders’ equity of $20,710,203.
Commenting on the results, Guy Nissenson, President and CEO
of XFONE, stated, “This quarter likely marks an inflection point
in our business as our scale and improving margins begin to
lift XFONE’s net profitability to meaningful earnings per share.
We shall continue to focus on profitability combined with growth.
While we continue to carefully evaluate acquisitions, organic
growth has been instrumental to our performance. The exceptional
results in the U.K. and Israel were due to innovative marketing
to new and old customers and continued focus on customer service
which
kept churn to a minimum.“
Conference Call:
The Company will host a conference call this morning, May 14,
beginning at 9:00 a.m. Eastern Standard Time, to discuss its
financial results for the quarter ended March 31, 2007.
The conference call may be accessed in the U.S. and Canada by
dialing toll-free 877 407-0782. International callers may access
the call by dialing 201-689-8567.
A replay of the teleconference will be available for 30 days
after the call and may be accessed domestically by dialing 877-660-6853
and international callers may dial 201- 612-7415. Callers must
enter account number 286 and conference number 242009.
To access the live webcast, log onto the XFONE website at http://www.xfone.com.
The webcast can also be accessed at
http://www.InvestorCalendar.com. An online replay will be
available shortly after the call.
Xfone, Inc. and
Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Adobe PDF 124KB)
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
|
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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