SAN ANTONIO, March 16, 2005 (PRIMEZONE) -- ATSI Communications, Inc. (OTCBB:ATSX) announced today that revenues for the 2nd fiscal quarter ended January 31, 2005 totaled $1,520,000. In comparison, this is a 506% increase over the previous year's 2nd fiscal quarter ended January 31, 2004 and an 81% increase over the quarter ended October 31, 2004. Net loss before non-cash items for the 2nd quarter ended January 31, 2005 was $4,000 vs. a net loss before non-cash items of $163,000 for the previous year's 2nd quarter ended January 31, 2004.
In addition to the strong revenue growth, recent achievements and highlights for the quarter include:
-- 3 consecutive months of record revenue since the Company's
reincorporation (November 2004 - January 2005)
-- Contract for VoIP services with a top-tier global carrier
-- NexTone broadband VoIP enhancement and 50% capacity expansion
to support future products and growth
Including non-cash items, net loss for the 2nd quarter ended January 31, 2005 was $1,186,000 vs. a net loss of $369,000 for the previous year's 2nd quarter ended January 31, 2004. The Company incurred $1,085,000 in non-cash compensation and warrant expense during the quarter associated with its multi-year stock compensation plan and warrants issued during the quarter. Additional non-cash items incurred during the quarter include depreciation and amortization expense, interest expense, and preferred dividend expense.
Arthur L. Smith, CEO of ATSI stated, "We are extremely pleased with our quarterly results. Our VoIP strategy continues to pay-off as evidenced by our significant revenue growth. The trend has continued as we are on a record revenue pace midway through the 3rd quarter." Mr. Smith added, "Although we have demonstrated our ability to grow top-line revenues, a key financial metric for us, we have also continued to control expenses and improve our profitability."
Net loss before non-cash items is not a term defined by generally accepted accounting principles (GAAP) and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP. The accompanying table includes a detailed reconciliation of net loss reported in accordance with GAAP to net loss before non-cash items.
ATSI Communications, Inc. is an emerging global VoIP carrier serving rapidly expanding markets in Asia, Europe, the Middle East, and Latin America, with an emphasis on Mexico. ATSI believes that it has clear advantages over its competition through its strategic partnerships with established foreign carriers and network operators, interconnection and service agreements, and its unique concession license in Mexico.
This news release contains forward-looking statements. These statements describe management's beliefs and expectations about the future. We have identified forward-looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and these statements may turn out not to be true. More detailed information about ATSI Communications, Inc. is available in the Company's public filings with the Securities and Exchange Commission.
ATSI COMMUNICATIONS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three months ended
January 31,
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2005 2004
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OPERATING REVENUES:
Services
Carrier services $1,446 $209
Network services 74 42
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Total operating revenues 1,520 251
OPERATING EXPENSES:
Cost of services (exclusive of
depreciation and amortization,
shown below) 1,422 218
Selling, general and
administrative 82 128
Legal and professional fees 40 88
Non-cash warrant expense,
for services 591 15
Non-cash stock-based compensation,
employees 474 -
Bad debt expense 4 -
Depreciation and amortization 24 -
---------- ---------
Total operating expenses 2,637 449
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OPERATING LOSS (1,117) (198)
OTHER INCOME (EXPENSE):
Other expense 4 -
Loss on an unconsolidated affiliate - (53)
Interest expense (35) (25)
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Total other income (expense) (31) (78)
NET LOSS (1,148) (276)
LESS: PREFERRED DIVIDENDS (38) (93)
---------- ---------
NET LOSS TO COMMON
STOCKHOLDERS ($1,186) ($369)
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BASIC AND DILUTED LOSS PER SHARE ($0.19) ($0.36)
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WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 6,346,695 1,036,550
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NET LOSS TO COMMON
STOCKHOLDERS ($1,186) ($369)
---------- ---------
EXCLUDING
---------
Loss on an unconsolidated affiliate - 53
Interest expense 35 25
Preferred Dividends Expense 38 93
Non-cash warrant and stock expense,
for services 611 35
Non-cash stock-based compensation,
employees 474 -
Depreciation and amortization expense 24 -
NET LOSS BEFORE ---------- ---------
NON-CASH ITEMS ($4) ($163)
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