ATLANTA, Nov. 13, 2008 (GLOBE NEWSWIRE) -- Flint Telecom Group, Inc. (OTCBB:FLTT), a fast growing telecoms technology & services company providing "turnkey" IP telecom services to global telecom and enterprise markets, today announced its financial results for the three and six months ended September 30, 2008.
These results only include the financial results of Semotus Solutions, Inc. The financial statements for the combined company of Flint Telecom, Inc. and Semotus Solutions are expected to be filed by mid-December in an amendment to its Current Report on SEC Form 8-K.
Financial Highlights:
* Revenues totaled $425,680 for the three months ended September
30, 2008, representing a 204% increase from revenues of $139,803
for the same period in the previous fiscal year. Revenues totaled
$656,415 for the six months ended September 30, 2008,
representing a 45% increase from revenues of $454,134 for the
same period in the previous fiscal year.
* For the three and six months ended September 30, 2008, a net loss
of $68,881 ($0.02 basic and diluted per share) and $303,446
($0.13 basic and diluted per share), respectively, as compared to
a net income of $3,328,361 ($1.85 basic per share and $1.69
diluted per share) for the three months ended September 30, 2007
and $3,471,805 ($1.94 basic per share and $1.77 diluted per
share) for the six months ended September 30, 2007.
* Gross profit margin on sales increased to 99.8% and 99.6% for the
three and six months ended September 30, 2008, respectively, from
98.7% and 95% for the same periods, respectively, in the previous
fiscal year.
* Operating expenses increased slightly by 4% to $552,642 and 1% to
$1,013,861 for the three and six months ended September 30,
2008, respectively, from $530,613 and $1,003,887 for the three
and six months ended September 30, 2007.
* As of September 30, 2008, cash and cash equivalents totaled
$83,162, a net decrease of $139,222 from March 31, 2008.
The substantial increase in revenue for the three and six months ended September 30, 2008 as compared to the same periods in 2007 is due to the sale of a HipLink license in 2008 to one new significant customer, Toronto Police Services. Conversely, the decrease in net income for the three and six months ended September 30, 2008 as compared to the same periods in 2007 is mainly due to the gain the Company realized on a software license it sold to Innofone in 2007.
"The business combination with Flint Telecom will allow the team to focus on building the combined business to generate long term value for our shareholders. We now have a clear direction for the future of our organization and I am excited about the results we expect to realize from the combined business. We have a great team and we are all excited about our future prospects," stated Anthony LaPine, Chairman, Flint Telecom Group.
"We are delighted with the results generated in the quarter ending September 30, 2008 by the team at Semotus and now look forward to the results created by the combination of the Flint business in the current quarter. It is a great achievement for Pamela LaPine to lead her team to a significant increase in revenue despite the challenges inherent in a merger process. No one expected improved results in this difficult economic environment and it is a great achievement on the part of Pamela LaPine and her HipLink team. The progress in the Enterprise Software Business gives Flint great momentum heading into our first combined quarter," stated Vincent Browne, Chief Executive Officer, Flint Telecom Group.
About Flint Telecom
Flint Telecom Group Inc. is a fast growing telecoms technology & services company providing "turnkey" IP telecom services to Global Telecom and Enterprise Markets. Flint Telecom areas of business include providing hosted technology and services to Independent Cable Companies, ISP's, VAR's and other operators who in turn sell full feature Digital Phone Service using VoIP to existing residential and business customers; providing voice and data termination services to other operators using Flint's own IP telecoms network and interconnection with larger carriers and delivering hosted alerting and mass notification services to Fortune 500 companies and Government agencies. Founded by telecom and technology entrepreneurs with a proven track record in building international technology companies Flint Telecom has been in business since 1993 and has been public for over 10 years. Flint Telecom has grown both organically and through corporate activity and is traded on the OTC Bulletin Board(r) (OTCBB) under the ticker FLTT.OB. Corporate headquarters are in Atlanta (GA), with a technology centre in New York (NY) and other operations in Boca Raton (FL) & Los Gatos (CA). European Headquarters are in Dublin, Ireland. For more information, please visit Flint's website at www.flinttelecom.com
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects", "intends", "believes", and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.