Thursday, December 22, 2011

netTALK.com, Inc. (NTLK) Posts Record Q4, FY2011 Financial Performance

netTALK, Inc., a company engaged in the design, distribution and sale of consumer electronics products and low-cost Voice over Internet Protocol (VoIP) services, today announced record financial results for the fourth fiscal quarter and full-year ended Sept. 30, 2011.

The company noted it is in the process of shifting its fiscal year-end to December 31, and as such, will file a second Form 10-K for the period ended Dec. 31, 2011, and will report the quarter ended Dec. 31, 2011, as its fourth fiscal quarter.

For the fourth quarter ended Sept. 30, 2011, revenues increased 711.0 percent to a record $1 million, compared to $139,849 reported in the prior year fourth quarter.

Deferred revenue, a leading indicator of future revenue, was $1.0 million for the fourth quarter of 2011, compared to $92,906 reported for the comparable quarter of 2010.

The company reported fourth-quarter gross profit at $279,261, or 26.62 percent gross profit margin, compared to negative gross profit of $290,779 in the fourth quarter last year.

netTALK’s fourth-quarter 2011 net loss was $2.9 million, or $(0.08) per basic and diluted share, compared to a net loss of $1.4 million, or $(0.12) per basic and diluted share, last year.

Anastasios Kyriakides, netTALK’s president and CEO, said that while the company reported revenue growth, financial performance didn’t include contribution from retailers who signed on at the end of the fiscal year.

“Thus, we expect to see even steeper acceleration of our sales in coming periods. We have also only begun to see renewals from netTALK DUOs placed in the last 12 months, and in the early days of annual renewals, the renewal rate has been approximately 80 percent, demonstrating strong customer satisfaction as consumers recognize the value our service provides. This will drive significant recurring revenue and increase the lifetime value of each customer. We have several new initiatives and service enhancements underway for launches planned in 2012, including line number porting, which we expect to increase our renewal rate, as well as increase our revenue per subscriber,” Kyriakides stated in the press release.

For the year ended September 30, 2011, revenues increased 268.9 percent to a record $2.7 million, compared to $737,498 in the prior year. Gross profit was a negative $377,901 compared to a negative $715,834 last year.

Fiscal year 2011 net loss, inclusive of a $17.3 million expense related to the change in fair value of liability-classified warrants, was $26.2 million, or $(1.40) per basic and diluted share, compared to a net loss of $6.4 million, or $(0.60) per basic and diluted share last year. The prior-year’s results included a $1.4 million gain on the change in fair value of liability-classified warrants.

netTALK completed the year with $3.6 million in cash and cash equivalents, compared to $1.0 million as of the end of fiscal 2010. Working capital as of Sept. 30, 2011, was $1.8 million.

For more information visit www.netTALK.com

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