NEW YORK, NY, Dec. 17, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – iQSTEL Inc. (OTC PINK: IQST) today issued a letter to shareholders.
LETTER TO OUR SHAREHOLDERS
Dear Shareholders:
On behalf of management, I would like to present this letter to shareholders of our company. Last Friday we filed an amended Current Report on Form 8-K/A (the “Amended 8-K”) where we disclose the financial results of our wholly-owned subsidiary, Etelix.com USA, LLC, for the years ended December 31, 2016 and 2017, as well as for the quarter ended March 31, 2018.
All the financial results we are presenting in the Amended 8-K are in accordance with our annual report on Form 10-K filed on November 14, 2018 with the Securities and Exchange Commission (“SEC”), which shows our consolidated financial statements for iQSTEL’s fiscal years ended June 30, 2018 and 2017.
We believe this fulfills the regulatory requirements related to having a complete audit of our Company and its subsidiary in accordance with standards of the Public Company Accounting Oversight Board (United States).
One of the difficulties we faced during the audit process was related to the discrepancy in the fiscal years of iQSTEL and Etelix, since iQSTEL ends on June 30 while Etelix ends on December 31. The different fiscal year ends resulted in added work to our team of accountants and auditors to guarantee the accuracy and consistency of the financial information shown.
In order to deal with this issue, we changed the fiscal year-end of iQSTEL from June 30 to December 31, making it coincide with the fiscal year for Etelix. The Board of Directors’ decision to change the Company’s fiscal year end was disclosed in our Form 8-K filed with the SEC on December 7, 2018. As a consequence, iQSTEL’s financial results for December 31, 2018 will be shown in an annual report on Form 10-K that we expect to file within the first quarter of 2019. This way, by that time, we will have three fiscal years audited.
Some of the highlights on the financial results of Etelix are as follows:
Revenues
- Revenue FY 2016 (Audited), US$ 4,071,375
- Revenue FY 2017 (Audited), US$ 7,741,566, 90% increase vs. FY 2016.
- Revenue January to June 2017 (Audited), US$ 3,774,676
- Revenue January to June 2018 (Audited), US$ 5,880,835, 55% increase vs. 2017 over the same period.
Operating Incomes
- Operating Income January to June 2017 (Audited), US$ 112,588
- Operating Income January to June 2018 (Audited), US$ 394,845, more than 3 times vs 2017 over the same period.
Net Incomes
- Net Income January to June 2017 (Audited), US$ -7,086.
- Net Income January to June 2018 (Audited), US$ 220,875.
FY 2018 Revenue Estimation
- Revenue Estimation FY 2018: 13+ Million US$, at least 65% increase vs FY 2017.
Current Quarterly Revenue Base
- Current Quarterly Revenue Base: 3.7+ Million US$. Based in the 2Q and 3Q in the financial statements showed in fillings 10-K and 10-Q respectively.
The above financial results clearly show the commercial growth trend of the Etelix business for last three years.
In iQSTEL, we are very proud of the commercial success and business plan execution of Etelix, and even though we are evaluating a couple of M&A opportunities in the Telecom industry, without any doubt our first priority is to continue collaborating with the organic growth of Etelix. We have not entered into any M&A transactions as of the date of this letter.
We would like to express our appreciation for your trust in iQSTEL, and we look forward to building a World-Class Telecommunications and Internet Services Corporation.
Best regards.
Leandro Iglesias
President/CEO
About iQSTEL Inc.:
iQSTEL (OTC: IQST) www.iQSTEL.com is a technology company offering a wide array of services to the Telecommunications Industry. These include services to International Long-Distance Telecommunications Operators (ILD Wholesale), Retail and Corporate markets (ILD Retail), Submarine Fiber Optic Network capacity, Satellite Communications services, Mobile Virtual Network Operator (MVNO) services, Internet of Things (IoT) technology solutions, Data Center facilities capacity leasing, and Blockchain solutions for the Telecommunications industry. iQSTEL fully owns Etelix.com USA LLC (www.etelix.com), a Federal Telecommunications Commission (FCC) licensed, international telecommunication carrier based in Miami, Florida.
About Etelix.com USA, LLC:
Etelix.com USA LLC www.etelix.com is wholly owned subsidiary of iQSTEL Inc. Etelix.com USA, LLC is a Miami, Florida-based international telecom carrier founded in 2008 that provides telecom and technology solutions worldwide, with commercial presence in North America, Latin America and Europe. Enabled by its 214-license granted by the Federal Communications Commission (FCC), Etelix provides International Long-Distance voice services for Telecommunications Operators (ILD Wholesale), and Submarine Fiber Optic Network capacity for internet (4G and 5G). Etelix was founded in 2008 and has been profitable since inception.
Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and iQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.