TAMPA, Fla., Nov. 22, 2004 (PRIMEZONE) -- FTS Group, Inc., a publicly traded holding company operating in the wireless space through its wholly owned subsidiary FTS Wireless, Inc. (OTCBB:FLIP), an emerging regional distributor of wireless, Wi-Fi and VoIP products and services, today announced record operating results for the third quarter of fiscal 2004.
FTS CEO Scott Gallagher commented, "FTS generated record operating results for the third quarter of 2004. During the third quarter FTS grew wireless activation levels by more than 100% when compared to the second quarter of 2004. Top-Line revenue grew by 825% when compared to the third quarter of 2003. For the first 9 months of 2004 FTS grew top line revenue by 1185% from $43,111 in 2003 to $510,991. Although financing and acquisition cost's increased during the first 9-months of 2004, we believe these expenses will be dramatically reduced heading into 2005."
Gallagher went on to say: "With one acquisition already closed for Q4 and a strong deal pipeline in place we fully expect the growth pattern we've established since taking over to continue into 2005 as we charge towards our ultimate goal of operating profitability."
FTS GROUP, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
30-Sep-04 30-Sep-03 30-Sep-04 30-Sep-03
----------- ----------- ----------- -----------
REVENUES $ 221,084 $ 26,797 $ 510,991 $ 43,111
----------- ----------- ----------- -----------
COST OF GOODS SOLD 137,359 19,018 312,689 29,185
----------- ----------- ----------- -----------
GROSS PROFIT 83,010 7,779 198,302 13,926
----------- ----------- ----------- -----------
GENERAL AND
ADMINISTRATIVE
EXPENSES
Non-cash stock
compensation 52,675 30,650 164,894 224,650
Purchased
development
costs -- -- -- 23,500
Selling, general
and administrative
expenses 503,960 106,459 1,571,120 303,692
----------- ----------- ----------- -----------
556,635 137,109 1,736,014 551,842
----------- ----------- ----------- -----------
LOSS FROM
OPERATIONS (473,625) (129,330) (1,537,712) (537,916)
----------- ----------- ----------- -----------
OTHER INCOME
(EXPENSE)
Interest expense (58,602) -- (77,704) (6,746)
----------- ----------- ----------- -----------
(58,602) -- (77,704) (6,746)
----------- ----------- ----------- -----------
NET LOSS $ (532,227) $ (129,330) $(1,615,416) $ (544,662)
=========== =========== =========== ===========
PER SHARE INFORMATION:
WEIGHTED AVERAGE
SHARES OUTSTANDING
(BASIC AND
DILUTED) 29,643,160 17,631,910 25,676,509 17,273,721
=========== =========== =========== ===========
NET LOSS PER COMMON
SHARE (BASIC AND
DILUTED) $ (0.02) $ (0.01) $ (0.06) $ (0.03)
=========== =========== =========== ===========
About FTS Wireless, Inc.
FTS Wireless Inc., is an emerging regional operator of retail wireless locations that market and sell next generation wireless products and services and operate Wi-Fi HotSpot's. FTS Wireless currently operates a chain of retail wireless locations in the Florida Gulf Coast region and the Philadelphia suburban market. The company markets and sells products worldwide through its e-commerce site's www.CellularDeals.com and www.SatPhoneCenter.com . For additional information about FTS Group, Inc. or its subsidiary, please visit our website at www.FTSWireless.com or review our periodic filings with the Securities and Exchange Commission at http://www.sec.gov.
Forward-Looking Statements
Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.