XFONE Reports First Quarter 2006 Results
Profitable Growth Continues;
Reiterates 2006 Revenue Guidance
of US$36-$38 Million. Conference Call Scheduled for
Tuesday, March 16 at 9:15 AM ET
May 15, 2006
JACKSON, Miss., May 15 /PRNewswire-FirstCall/ -- XFONE, Inc. (Amex: XFN) ("XFONE" or "the Company"), a provider of international voice and data communications services, announces its first quarter results for the three months ended March 31, 2006.
Financial Highlights for the Three Months Ended
March 31, 2006 Compared to the Three Months Ended March
31, 2005:
-
Revenues increased 36% to 4,501,289 pounds(US$7,841,245) from 3,312,934 pounds (US$6,228,317).
- Gross profit margins improved, rising to 36.3% from 31.4%.
- Operating profits jumped 647% to 85,296 pounds (US$148,585) from 11,415 pounds (US$21,461).
- Net income rose 47% to 63,889 pounds(US$111,295) from 43,497 pounds (US$81,774).
- Basic earnings per share were 0.008 pounds(US$0.014) compared to 0.007 pounds (US$0.012).
- As of March 31, 2006, the Company had approximately 5.0 million pounds (US$8.7 million) in cash and accounts receivables and stockholders' equity of approximately 8.5 million pounds (US$14.7 million).
- The Company's Israeli "start up" subsidiary, XFONE 018 Ltd., achieved a breakeven EBITDA. Revenues in XFONE 018 Ltd increased 228% to 650,069 pounds (US$1,132,420) for the quarter ended March 31, 2006 compared to 198,211 pounds (US$372,637) for the first quarter of 2005.
Operational Highlights for the First Quarter 2006:
-
In January 2006, XFONE USA completed the acquisition of the assets of EBI Comm, Inc. and Canufly.net, Inc., both Internet Service Providers serving customers throughout the Mississippi. Collectively, both acquisitions are expected to contribute over US$1 million in revenues to XFONE in 2006.
- On March 31, 2006, the Company completed the mergers of I-55 Internet Services, Inc. and I-55 Telecommunications, LLC, with and into its wholly owned subsidiary XFONE USA, Inc.
- Guy Nissenson, President and CEO of XFONE, Inc., issued formal annual revenue guidance, forecasting $36-$38 million for 2006.
"2006 is off to a very strong start in all regards," stated Nissenson. "We continue to enjoy double and triple digit growth across all key metrics and are highly confident that this trend will continue as we progress through the year. Each of our geographical operations, Israel, the U.K. and the U.S., have delivered strong performance in the first quarter and appear to be gaining momentum. Fueling this momentum is successful execution of our growth-through-acquisition strategy -- a strategy that we intend to perpetuate in key global markets through the balance of the year."
Nissenson added, "We remain firmly on pace and believe that we will achieve our stated revenue guidance for the year. Currently tracking at an annualized revenue run-rate of nearly US$32 million, and after factoring the anticipated impact and timing of enhanced organic growth initiatives and targeted acquisitions, our forecasted objective of $36-$38 million appears to be right in line."
XFONE will also host a teleconference tomorrow, Tuesday, May 16, 2006, beginning at 9:15 AM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financials, corporate progression and other meaningful developments. The conference call can be accessed in the U.S. by dialing toll-free 1-800-240-4186. International callers can access the call by dialing 303-262-2125. For those unable to participate at that time, a replay of the teleconference can be accessed domestically by dialing 1-800-405-2236 and enter the pass-code 11059904#. International callers may dial 303-590-3000 and enter the pass-code 11059904#. The replay will be available for 30 days.
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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