XFONE FIRST QUARTER REVENUES
INCREASE 47% TO $11.5 MILLION WITH A 300% INCREASE
IN NET INCOME TO $444,395
-Growth and Improving Margins Lift EPS to $0.04 -
May 14, 2007
JACKSON, MS –May 14, 2007 – XFONE, Inc.
(AMEX and TASE: XFN) (“XFONE” or
“the Company”), an international diversified communications services
company
announced today its financial results for the three months ended
March 31, 2007.
Financial highlights for the three months ended March 31, 2007
compared to the
three months ended March 31, 2006:
- Total revenues increased
47% to $11,523,716 from $7,841,245 in the first
quarter of 2006.
- Gross profit margins also
improved, rising to 55% from 36.3% in the first
quarter of 2006.
- XFONE’S operations in the
U.K. contributed $6,095,938 to total revenues, a
93% increase from revenues of $3,159,113 in the first
quarter of 2006.
- Revenues generated by XFONE
018, the Company’s Israeli-based operation,
totaled $2,008,685 representing a 77.4% increase over
$1,132,420 in the first
quarter of 2006.
- XFONE USA revenues were
$3,419,093 - a slight decrease of 3.7% from
$3,549,712 in the first quarter of 2006.
- EBITDA increased 171% to
$916,447 from $337,870 in the first quarter of
2006.
- Net income increased 300%
to $444,395, or $0.04 earnings per basic share,
from $111,295, or $0.01 per basic share, in the first
quarter of 2006.
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As of March 31, 2007, XFONE had $9,897,802 in cash and accounts
receivable and
total shareholders’ equity of $20,710,203.
Commenting on the results, Guy Nissenson, President and CEO of XFONE,
stated,
“This quarter likely marks an inflection point in our business as
our scale and improving
margins begin to lift XFONE’s net profitability to meaningful
earnings per share. We
shall continue to focus on profitability combined with growth. While
we continue to
carefully evaluate acquisitions, organic growth has been
instrumental to our
performance. The exceptional results in the U.K. and Israel were due
to innovative
marketing to new and old customers and continued focus on customer
service which
kept churn to a minimum.“
Conference Call:
The Company will host a conference call this morning, May 14,
beginning at 9:00 a.m.
Eastern Standard Time, to discuss its financial results for the
quarter ended March 31,
2007.
The conference call may be accessed in the U.S. and Canada by
dialing toll-free 877
407-0782. International callers may access the call by dialing
201-689-8567.
A replay of the teleconference will be available for 30 days after
the call and may be
accessed domestically by dialing 877-660-6853 and international
callers may dial 201-
612-7415. Callers must enter account number 286 and conference
number 242009.
To access the live webcast, log onto the XFONE website at
http://www.xfone.com. The
webcast can also be accessed at
http://www.InvestorCalendar.com. An online replay will
be available shortly after the call.
Xfone, Inc. and
Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Adobe PDF 124KB)
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 |
Israel IR Contact |
John Nesbett/Jennifer Beloeau
Institutional Marketing Services (IMS)
Phone: 1.203.972.9200.
E-mail: jnesbett@institutionalms.com |
Zvi Rabin
Kwan Communications
Tel: (Israel) +972 50 560 0140
E-mail: zvi@kwan.co.il |
|
| Xfone Contact |
|
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: E-mail: niv@xfone.com |
|
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