Elephant Talk Reports Increased Revenue for Mobile & Security Solutions for the First Six Months of 2011
(firmenpresse) - SCHIPHOL, THE NETHERLANDS -- (Marketwire) -- 08/16/11 -- Elephant Talk Communications, Inc. (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 six month period ended June 30, 2011.
"During the first half of 2011 Elephant Talk increased its footprint by further establishing MVNE operations across a number of countries," stated Steven van der Velden, Chairman and CEO of Elephant Talk. "This expansion of our high-margin customized mobile service offerings is expected to gain additional momentum in the second half of the year. Additionally, ValidSoft continued to make progress with Visa Europe, as well as several other key financial institutions for the commercialization of the ValidSoft suite of products and expects to finalize our first significant sale within the calendar year."
Mr. van der Velden continued, "With the recent operational success in both business segments and numerous opportunities that lay ahead, management intends to transition to a senior U.S. exchange in the second half of 2011. The recent appointment of an additional independent Board Member and an improved balance sheet now positions us to apply for an up-listing on a senior exchange. Management is extremely pleased with the current direction of the company and believes we will continue to garner traction in all business segments so that we are well positioned to increase earnings and market expansion."
:
ValidSoft's agreement with Visa Europe is progressing ahead of schedule and the project recently passed the mid-way stage.
The agreement with Visa Europe, is for the utilization of VALid-POS®, for card fraud detection and prevention solution, and VALid®, ValidSoft's multi-factor authentication platform and allows Visa Europe to integrate and market these solutions to its 4,000+ member banks in Europe.
ValidSoft's program with the European Government Agency for Welfare Recipient Self-Certification is potentially Europe's largest ever voice Biometric implementation to date. When live, the European Government Agency solution will generate significant administrative cost savings and efficiencies through self certification.
ValidSoft has completed the first phase of the Live Trial and is now preparing for Phase 2 which will run throughout the third quarter.
Signed contract with Sogeti BeLux (), a prominent provider of IT services in Belgium and Luxembourg.
Sogeti BeLux will be the first reseller partner in continental Europe to provide ValidSoft's suite of multi-layered security products.
Signed a joint venture with MECO Holding AG to launch mobile virtual network enabler (MVNE) platforms.
The Elephant Talk-MECO venture will initially focus on up to ten countries, starting with MVNE platforms in Italy, Germany and the UK.
Signed agreement with Zain Saudi Arabia to deliver and manage mobile services for Zain mobile brands in the Kingdom of Saudi Arabia.
Appointed Jacques D. Kerrest to the Company's Board of Directors.
Having recently served as Chief Operating Officer and Chief Financial Officer of ActivIdentity Corp., and before that with, amongst others, Virgin Media. Mr. Kerrest has over 30 years of experience in banking, finance, operations and executive management.
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.
Revenue for the three months ended June 30, 2011 was $7,790,976, compared to $9,673,825 for the three months ended June 30, 2010. Revenue for the six months ended June 30, 2011 was $16,298,990, a decrease of $3,318,600 compared to $19,617,590 for the six months ended June 30, 2010. In constant currency, the revenue decreased by $4,406,617 compared to the same period in 2010, and was attributable to a decrease of $5,121,779 of our legacy landline business, which was partly off-set by the increase in our higher margin mobile and security solutions business of $715,162 compared to the same period in 2010.
Cost of service for the three months ended June 30, 2011 was $7,494,679, a decrease of $1,510,715 compared to $9,005,394 for the three months ended June 30, 2010. Cost of service for the six months ended June 30, 2011 was $15,052,164, a decrease of $3,327,118 compared to $18,379,282 for the six months ended June 30, 2010.
Selling, general and administrative ("SG&A") expense for the three months ended June 30, 2011 and 2010 were $3,824,756 and $2,079,359, respectively. SG&A expenses increased by $1,745,397, in 2011 compared to 2010. This was led by an increase of 23.4% in our staffing levels on June 30, 2011 compared to June 30, 2010, largely in sales and European hires, as well as by higher marketing and selling costs.
Selling, general and administrative ("SG&A") expense for the six months ended June 30, 2011 and 2010 were $7,241,113 and $3,984,709, respectively. SG&A expenses increased by $3,256,404, in 2011 compared to 2010. This increase was for 44.6% caused by the fact that the ValidSoft first quarter financials were not included in the six months ended June 30, 2010. The remainder of the increase was the result of the previously mentioned growth of the organization.
Income (Loss) was $(6,721,423) and $(14,358,524) for the three months ended June 30, 2011 and 2010 respectively, and $(11,434,647) and $(26,696,719) for the six months ended June 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.
(note: 2010 excludes ValidSoft financials for Q1 2010)
As a reminder, Elephant Talk Communications will host a Shareholder Update conference call on August 16, 2011 at 11:00 a.m. Eastern Time.
Anyone interested in participating should dial 1-877-941-8418 if calling within the United States or 1-480-629-9809 if calling internationally approximately 5 to 10 minutes prior to 11 a.m. Participants should ask for the Elephant Talk Shareholder Update conference call. There will be a playback available until August 23, 2011. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use the pass code 4462750 for replay.
This call is being webcast by ViaVid Broadcasting and can be accessed at either Elephant Talk'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, Inc. (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, Inc. (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 ().
Elephant Talk Communications, Inc:
Mr. Steven van der Velden
Tel: + 31 20 653 59 16
E-mail:
Investors:
Alliance Advisors, LLC
Thomas P. Walsh
Tel: + 1 212-398-3486
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 16.08.2011 - 06:00 Uhr
Sprache: Deutsch
News-ID 1030911
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
SCHIPHOL, THE NETHERLANDS
Phone:
Kategorie:
Wireless & Mobile
Anmerkungen:
Diese Pressemitteilung wurde bisher 219 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Elephant Talk Reports Increased Revenue for Mobile & Security Solutions for the First Six Months of 2011
"
steht unter der journalistisch-redaktionellen Verantwortung von
Elephant Talk (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
