Elephant Talk Communications Announces 64% Increase of Mobile and Security Solutions for the Period Ended September 30, 2011
(firmenpresse) - SCHIPHOL, THE NETHERLANDS -- (Marketwire) -- 11/15/11 -- Elephant Talk Communications, Corp. (OTCBB: ETAK) (), an international provider of business software and services to the telecommunications and financial services industries, today announced the results of operations for the three and nine month periods ended September 30, 2011.
"During 2011 management has remained committed and confident to the mass commercialization of our anti-fraud technology and the expansion of our mobile services," stated Steven van der Velden, Chairman and CEO of Elephant Talk. "In addition to our Visa Europe relationship, ValidSoft now has an agreement with Adeptra that will allow us to prevent fraudulent transactions while authenticating and verifying across all banking channels. Management has made significant progress in generating interest from multiple global banking institutions for ValidSoft's suite of products and we expect our first large-scale sale for ValidSoft within the coming months. Lastly, we are pleased with the $1.5 million increase so far this year in our higher margin mobile and security solutions business. With nearly $11 million in cash on our Balance Sheet and recently signed contracts with Your Card and SpeakUp in our mobile telecom operations, and Adeptra in our transaction security operations, we are well positioned to increase our mobile and security services revenue."
:
ValidSoft and Adeptra Form Partnership to Extend Global Fraud Detection and Customer Communications.
The partnership provides financial organizations with best-in-class fraud detection and prevention functionality, as well as total control over their customer communications.
ValidSoft was awarded its Second European Privacy Seal for its VALid-4F™solution and continues to be the only Security Software Company in the world to be certified to the EuroPriSe standards.
The European Privacy Seal certifies IT products and IT-based services privacy compliance with European data protection regulations.
Elephant Talk signed a Mobile Network Virtual Operator (MVNO) agreement with SpeakUp, a Netherlands-based company whose telecom infrastructure covers the Netherlands, as well as Germany, Belgium, and the UK.
SpeakUp will offer a new range of innovative services by combining both fixed and mobile functionalities. SpeakUp will target the small and medium enterprise market to offer high-quality, fully integrated fixed and mobile flexible services.
We announced the signing of an agreement with Your Card B.V., a Mobile Virtual Network Operator (MVNO) serving the Dutch market.
Your Card B.V. will launch Calling Card services -- under the name YOUR CARD® ONE -- to Dutch commercial and consumer mobile users this fall using Elephant Talk's fully integrated MVNE platform for hosting mobile services and supporting new channels.
Elephant Talk appointed Charles E. Levine to the company's Board of Directors.
In a career spanning more than 30 years, Mr. Levine has held executive positions at several companies in the telecommunications industry including Sprint PCS, AT&T, General Electric, and Octel Communications Corp.
When we use the non-GAAP financial measurement term "constant currency" it means that we have translated financial data for a previous period into U.S. Dollars using the same foreign currency exchange rates that we used to translate financial data for the current period. We believe that this calculation is a useful measure, indicating the actual growth of our operations. Also, we use "Margin" below which is a non-US GAAP financial measurement nor has it been mentioned in our 10Q for this quarter, but we believe this to be a useful measure of the development of our business.
Revenue for the three months ended September 30, 2011 was $7,796,936, a decrease of $1,243,461 or 13.75%, compared to $9,040,397 for the three months ended September 30, 2010. Revenue for the nine months ended September 30, 2011 was $24,095,926, a decrease of $4,562,061 or 15.92%, compared to $28,657,987 for the nine months ended September 30, 2010.
In constant currency, the revenue for the three months ended September 30, 2011 decreased by $2,123,010 or 21.51% compared to the same period in 2010. For the nine months ended September 30, 2011 revenue decreased by $6,542,320 or 21.35% compared to the same period in 2010. The decrease of $6,542,320 was the result of the expected continued decrease in our low margin legacy landline business by $8,045,678, which was partly off-set by the increase in our higher margin mobile and security solutions business of $1,503,358.
In constant currency our mobile and security business revenue increased by $ 785,908 (128%) and $1,503,358 (63.6%) respectively for the three months ended 30 September 2011 and nine months ended 30 September 2011.
Cost of service for the three months ended September 30, 2011 was $6,996,525, a decrease of $1,641,981 or 19.01%, compared to $8,638,506 for the three months ended September 30, 2010. Cost of service for the nine months ended September 30, 2011 was $22,048,689, a decrease of $4,969,099 or 18.39%, compared to $27,017,788 for the nine months ended September 30, 2010. The decrease in cost of service was mainly caused by the decrease in revenues in our low margin legacy landline business.
Despite the large decrease in total revenues, the Margin (Revenues minus Cost of Service) has increased following the growth in higher margin mobile and security solution business. For the third quarter 2011 the Margin was $800,411. This is an increase of $398,520 (99.2%) compared to $401,891 from the same period 2010. Margin for the nine months ended September 30, 2011 was $2,047,237, an increase of 407,038 (24.7%) compared to $1,640,199 from the same period 2010.
Selling, general and administrative ("SG&A") expense for the three months ended September 30, 2011 and 2010 were $4,325,272 and $2,795,572, respectively. SG&A expenses increased by $1,529,700, or 54.72%, in 2011 compared to 2010. Selling, general and administrative ("SG&A") expense for the nine months ended September 30, 2011 and 2010 were $11,566,385 and $6,780,281, respectively. SG&A expenses increased by $4,786,104, or 70.59%, in 2011 compared to 2010. This was led by an increase of 26% in our staffing levels on September 30, 2011 compared to September 30, 2010, largely in sales and European hires, as well as by higher marketing and selling costs. Moreover, the increase was for 26.5% caused by the fact that the Validsoft first quarter financials were not included in the nine months ended September 30, 2010.
Net Income/(Loss) was ($7,271,107) and ($25,846,225) for the three months ended September 30, 2011 and 2010 respectively, and ($18,705,754) and ($52,542,944) for the nine months ended September 30, 2011 and 2010 respectively. Net loss was reduced following the conversion in Q4 2010 of convertible debt into equity, thus removing large warrant liability and conversion feature charges.
Elephant Talk employs Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization as well as to market adjustments related to our warrant liabilities and conversion features which are accounted under derivative accounting rules as required by US GAAP, for several purposes, including as a measure of our operating performance. We use Adjusted EBITDA because it removes the impact of items not directly resulting from our core operations, thus allowing us to better assess whether the elements of our growth strategy are yielding positive results.
As a reminder, Elephant Talk Communications will host a Shareholder Update conference call on Tuesday, November 15, 2011 at 11:00 a.m. Eastern Time. Anyone interested in participating should dial 1-480-629-9809 approximately 5 to 10 minutes prior to 11 a.m. Participants should ask for the Elephant Talk Shareholder Update conference call. To listen to the playback please utilize the webcast by visiting the company's website at or ViaVid's website at . To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit:
Elephant Talk Communications Corp. (OTCBB: ETAK) is an international provider of business software and services to the telecommunications and financial services industry. The company enables both mobile carriers and virtual operators to offer a full suite of products, delivery platforms, support services, superior industry expertise and high quality customer service without substantial upfront investments from clients. Elephant Talk provides global telecommunication companies, mobile network operators, banks, supermarkets, consumer product companies, media firms, and other businesses a full suite of products and services that enables them to fully provide telecom services as part of their business offerings. The company offers various dynamic products that include remote health care, credit card fraud prevention, mobile internet ID security, multi-country discounted phone services, loyalty management services, and a whole range of other emerging customized mobile services. For more information, visit ().
ValidSoft is a subsidiary of Elephant Talk Communications Corp. (OTCBB: ETAK), () and is a market leader in providing solutions to counter electronic fraud relating to card, the internet, and telephone channels. ValidSoft's solutions are at the cutting edge of the market and are used to verify the authenticity of both parties to a transaction (Mutual Authentication), and the integrity of the transaction itself (Transaction Verification) for the mass market, in a highly cost effective and secure manner, yet easy to use and intuitive. For more information, please visit ().
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained upon request from the Company.
Elephant Talk Communications Corp.:
Mr. Steven van der Velden
Tel: + 31 20 653 59 16
Investors:
Alliance Advisors, LLC
Thomas P. Walsh
Tel: + 1 212-398-3486
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 15.11.2011 - 13:35 Uhr
Sprache: Deutsch
News-ID 87969
Anzahl Zeichen: 0
contact information:
Town:
SCHIPHOL, THE NETHERLANDS
Kategorie:
Wireless & Mobile
Diese Pressemitteilung wurde bisher 164 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Elephant Talk Communications Announces 64% Increase of Mobile and Security Solutions for the Period Ended September 30, 2011"
steht unter der journalistisch-redaktionellen Verantwortung von
Elephant Talk Communications (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
