XFONE REPORTS RECORD FIRST
QUARTER RESULTS
Revenues of $4.2 million,
115% Increase over First Quarter 2003
Net Profit Up 45%
May 17, 2004
CARSON CITY, Nev. & LONDON--(BUSINESS WIRE)--May 17, 2004--xfone, Inc. (OTCBB:XFNE; BER: XFO) an international telecommunication services provider, today announced its consolidated financial results for the first quarter ended March 31, 2004.
Revenues for the quarter increased 115% to $4.2 million, from approximately $2.0 million in the first quarter of 2003. Gross profit for the three months ended March 31, 2004 rose 49% to $1,372,596 from $906,084 for the same quarter in 2003. Net income after taxes for the period was $189,648, or $0.03 per basic and diluted share, an increase of 45% over net income of $130,590, or $0.03 per basic and $0.02 per diluted share for the same period in 2003.
Commenting on the results, Guy Nissenson, President and Chief Executive Officer of xfone stated, “During the first quarter, we continued to perform well on all levels, delivering strong year-over-year growth on our top and bottom lines. Our recently completed private placement strengthened our financial position, leaving us with approximately $4 million in cash. We have made significant progress toward establishing xfone’s presence in new markets that present growth opportunities. As recently announced, we submitted an application to the Israeli Government’s Ministry of Communications for a license to provide international telecommunications services. Penetration of this market, valued at over $300 million annually, is an integral part of our long-term growth strategy. We hope that the license will be granted and believe in xfone’s ability to compete effectively in this market. Additionally we recently signed a letter of intent to acquire eXpeTel Communications in Jackson, Mississippi. We believe that we can leverage the synergistic business models of Xfone and eXpeTel in order to capitalize on the multitude of opportunities that exist in the U.S. market.”
Dollar amounts reported in this release are provided for convenience purposes only based on the March 31, 2004 exchange rate of 1 Pound =U.S.$1.84
The Oberon Group is acting as a financial advisor to xfone in regard to this transaction.
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers across Europe, Asia, North, Central and South America, Australia and Africa.
This press release contains forward-looking statements.
The words or phrases "should," "would
be," "will allow," "intends to,"
"will likely result," "are expected to,"
"will continue," "is anticipated,"
"estimate," "project," or similar
expressions are intended to identify "forward-looking
statements." The Company's financial results reflected
above should not be construed by any means as representative
of the current or future value of its common stock.
All information set forth in this press release, except
historical and factual information, represents forward-looking
statements. This includes all statements about the company's
plans, beliefs, estimates and expectations. These statements
are based on current estimates and projections, which
involve certain risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements. These risks and uncertainties
include issues related to rapidly changing technology
and evolving standards in the industries in which the
Company and its subsidiaries operate; the ability to
obtain sufficient funding to continue operations, maintain
adequate cash flow, profitably exploit new business,
and license and sign new agreements; the unpredictable
nature of consumer preferences; and other factors set
forth in the Company's most recently filed annual report
and registration statement. Readers are cautioned not
to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date
hereof. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Readers
should carefully review the risks and uncertainties
described in other documents that the Company files
from time to time with the Securities and Exchange Commission.
| For More Information, Please Contact: |
 |
| U.S.
IR Contact |
John Nesbett/Jennifer Beloeau
Institutional Marketing Services (IMS)
Phone: 1.203.972.9200.
E-mail: jnesbett@institutionalms.com |
|
| Xfone Contact |
|
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: E-mail: niv@xfone.com |
|
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