XFONE REPORTS
RECORD REVENUE FOR FISCAL YEAR 2004 AND
MARKS FIFTH CONSECUTIVE YEAR OF GROWTH AND PROFITABILITY
New US and Israeli Subsidiaries
Expected to Contribute Measurably to
2005 Growth; 2005 Expected to be Yet Another Record
Year
April 1, 2005
LONDON – (BUSINESS WIRE) – April 1, 2005 – XFONE,
Inc. (OTCBB: XFNE) (“XFONE” or “the Company”), a provider
of international voice and data communications services,
announced that late yesterday afternoon it filed its annual
report on Form 10K-SB with the US Securities and Exchange
Commission reflecting financial results for the fiscal
year ended December 31, 2004.
Fiscal Year 2004 Financial Highlights (translated into US dollars for convenience):
- Revenues increased 55% to £11,330,116 (US$21,867,124) from £7,282,181 (US$14,054,609).
- Due largely to expenses associated with the acquisition of eXpeTel in Jackson, Mississippi and the build-out of the Company’s new ‘018’ international long distance operations in Israel, net income declined to £39,874 (US$76,957) from £421,445 (US$813,389). 2004 marked the fifth consecutive year of net profitability for XFONE, Inc.
- Diluted earnings per share in 2004 were £0.005 (US$0.009) compared to £0.08 (US$0.154) in 2003.
As of December 31, 2004, the Company had approximately £3 million (US$5.9 million) in cash and accounts receivables and stockholders’ equity of approximately £2.2 million (US$4.3 million).
Operational Highlights for 2004:
- XFONE initiated its international expansion strategy, successfully expanding operations from the United Kingdom into both the United States and Israel. Currently, the Company serves customers located in 75 countries across Europe, Australia, North America, South America, Asia and Africa.
- The Company entered the world’s largest telecommunications market – the United States, when it negotiated the acquisition of eXpeTel Communications, a licensed telecom service provider based in Jackson, Mississippi. On March 10, 2005, the Company consummated the acquisition and officially merged eXpeTel into its wholly-owned U.S. subsidiary, XFONE USA, Inc.
- In December 2004, XFONE successfully launched its international carrier business in Israel’s growing telecommunications market, through its majority owned subsidiary, XFONE Communication Ltd., which recently changed its name in March 2005 to XFONE 018 Ltd. Following only two and half months of operations, XFONE 018 reported that it was on pace to exceed three million call minutes per month and had logged approximately 30,000 registered and unregistered new customers.
- XFONE’s United Kingdom telecommunications operations, Swiftnet Ltd., the largest contributor to the Company’s revenues during 2004, continued to produce strong financial results, achieving 35% year over year revenue growth.
Guy Nissenson, Company President and Chief Executive Officer, stated, “Without question, 2004 was a defining year for XFONE, one characterized by international expansion and thoughtful execution of several key growth strategies. As a result of our success in establishing operations in three competitive and active user markets of telecommunications services – the United Kingdom, the United States and Israel, XFONE is firmly poised to deliver our sixth consecutive year of growth and profitability. Therefore, based on our current revenue run rate and without giving consideration to possible future acquisitions, I’m pleased to confirm that we remain confident that our financial performance in 2005 will reflect yet another year of record breaking achievements.”
XFONE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT
OF OPERATIONS
(Audited)
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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