Rockville, MD, June 21, 2022 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”), a technology company developing the mPower EV+ (electric vehicle) charging network and consumer engagement platform, today reported financial results for its fiscal 2022 third quarter, which ended March 31, 2022.
Q3 marked the Company’s 12th straight quarter of year-over-year revenue growth.
Fiscal 2022 Third Quarter Financial Highlights:
- Revenue grew 11% to a record $8.5 million compared to $7.7 million in the prior year quarter, with mPower consumer engagement services generating $144,700 of subscription revenue;
- Gross profit margin increased approximately 600 basis points to 32.5%, compared to 26.5% in the same year-ago quarter;
- Operating income of $1.2 million showed a 4% year-over-year increase;
- The Company posted a net loss of $1.0 million compared to net income of $0.3 million in the prior year quarter, due to several large items relating to non-cash financing costs, partially offset by significantly lower interest expense;
- Stockholders’ Equity remained significantly above uplist requirements at $12.6 million, an 8% increase over the $11.7 million in the year ago quarter.
Subsequent Events
- The Company renewed its primary (USD $33 million+) revenue-producing software license agreement for an additional three-year term;
- Announced the initiation of the EV charging segment of the mPower platform with the selection of 24 mPower EV charging sites in Virginia, Florida, and North Carolina;
- Announced the first Level 3 charger sale, to a Pennsylvania-based Ford dealership;
- Landed 19 major national and international branded sites in five business categories during the first month of the EV charging roll-out.
Management Commentary
“Our fiscal 3rd quarter marked the beginning of a major transformation for mPhase, as we worked to complete the planning for our EV charging roll-out, which finally commenced last month,” explained mPhase Chairman and CEO Anshu Bhatnagar. “The first half of 2022 has been one of the most challenging and exciting times we have seen in the last several years. First off, the economic shock waves from world events affected our legacy customers, temporarily disrupting our cash flow right as our capital needs increased. With the signing of our new three-year agreement and other changes, we believe this situation is now remedied and this revenue will resume the kind of steady flow we experienced during the prior three years.”
“We continue to have far more business than our current capital resources can fulfill, so we are working to establish bank lines, equipment financing, and other friendly sources of operational capital in order to ramp up as quickly as possible over the remainder of the year. With the filing of this 10Q, mPhase is once again current and can unlock these important sources of financing; and complete an amended S1 to prepare for an eventual uplist when conditions are optimal. We have already assembled a core group of institutional investors who will support our move to the next level, so the timeline for our uplist is directly connected to the successful execution of our business plan.”
“The EV-equipment stage of that plan is already yielding impressive results. To judge the power of our mPhase ecosystem, consider that we signed properties aligned with 19 significant brands, including Subway, McDonald’s, Pizza Hut, Exxon, BP, Shell, Fairfield Inn, and Comfort Inn – in the first 30 days of our EV roll-out. Our pipeline continues to grow, with more than 30,000 sites on our target list and a strategy to add several thousand consumer engagement customers per month through the end of the year, along with hundreds of charging stations as we infill each state. Based on our target list, we expect to have as many as 75 different chain and brand customers introduced to our system by year end, giving us a long list of use cases to elevate our value proposition to the corporate level. We are already on track to generate more than $2 million in annual recurring revenue from just consumer engagement alone, giving us renewed confidence in our ability to achieve solid double-digit growth in coming quarters as we layer on additional revenue streams.”
“There is no sugarcoating that we’ve had some growing pains during this transition, forcing us to cut costs and reconfigure our management team in order to reignite our momentum. Led by our independent board members, we’ve made some tough decisions along the way in order to instill a more entrepreneurial mindset across our organization. In coming months, you will see some important new faces at mPhase, as we bring in high profile advisers and partners to improve our execution and accelerate our growth. These internal changes are already yielding results, as noted by our increased press release activity in recent weeks. Based on our sales experiences to date, we know that our EV+ approach has tremendous appeal, because it gives retailers more value than any other competing EV charging system. Execution against our current plan may provide an opportunity to end the year as a Nasdaq-listed company, with the fastest growth rate and profitability in the industry.”
Due to the proximity to the next quarterly and year-end report caused by the delayed filing, the Company has elected to resume traditional earnings calls beginning in the next reporting period.
About mPhase Technologies
mPhase is an emerging EV-centric technology company focused on consumer engagement using data analytics and artificial intelligence to create a monetizable link between consumers and retailers at opportunistic times and places. The Company is currently building a connected ecosystem of EV charging, 5G internet connectivity and software solutions that optimize consumer engagement within the framework of a SaaS/TaaS model. Branded under the mPower name, this ecosystem will empower the way people shop, dine, fuel and interact with the world to create a richer life experience. The mPower ecosystem is tailored to each individual’s tastes and needs, with particular emphasis on empowering tomorrow’s green consumer. mPhase also has data driven business units generating recurring revenue outside of its consumer ecosystem, in addition to legacy nanobattery technology and a related patent portfolio that are slated for future development. Additional information can be found at the mPhase website, www.mphasetech.com; and at www.mpower.co. Please follow us on twitter: @mPhase_Tech for the latest updates.
Investor Contact:
ir@mphasetech.com
