IPVoice Communications Inc. Files SEC Form 10QSB Reporting $2.6 Million First Quarter Revenue Representing a 443% Increase Over First Quarter 2003
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High-Tech Writers / Business Editors DALLAS--(BUSINESS WIRE)--IPVO-- Strong Cash Position to Fund Ongoing Operations at $1.4 Million with Working Capital Surplus over $250,000 IPVoice Communications, Inc. (OTCBB:IPVO) today announced filing SEC Form 10QSB reporting operation results for the first quarter of 2004. Net sales increased four hundred forty-three percent (443%) from $491,000 for the quarter ended March 31, 2003, to $2,664,700 for the quarter ended March 31, 2004. Twenty-five percent (25%) of this increase was due to organic sales growth of the previously existing core operations. The balance of the increase was due to the acquisitions completed over the last year, which contributed organic sales growth as well. Cost of sales grew in proportion to the increase in sales. However, costs associated with organic growth were reduced by twenty-five percent (25%). Associated with investments to expand operations of acquisitions made over the last year, the Company reported a loss for the quarter of $532,985. The Company also reported a working capital surplus of $252,000 with cash on hand of $1,395,000. "Our first quarter 2004 revenues were greater than our revenues for the entire year of 2003," said Philip Verges, CEO of IPVoice. "While we grew largely through acquisition, we also recorded organic growth in both our core operations as well in the acquisitions post acquisition. We have made planned investments to expand the operations of our acquisitions and anticipated a loss. We expect the ongoing profitability of our core operations to bring the overall Company profitable by year-end. At nearly $1.4 million in cash on hand, the Company has a strong cash position in regard to supporting our current operations and the planned investment for the expansion of our existing acquisitions. Any additional outside investment the Company seeks will be to support further expansion through additional acquisition. We are confident that the Company will be able to support substantially more favorable terms for any future financing we might pursue to support new acquisitions. We also are reaffirming our projections to meet our forecast of $50 million in annualized revenue run rate by the end of this year." About IPVoice Communications Inc. IPVoice is a six-year-old company that has reported as a research and development concern for most of its history. In 2002, IPVoice launched a new business plan, which resulted in the Company posting six consecutive profitable quarters through 2003 and establishing an annualized $15 million in revenue. The Company is actively acquiring early-stage proprietary technology companies and financially distressed systems integration companies in specific global markets. In 2003, IPVoice acquired Infotel Technologies in Singapore and IP Global Voice, led by CEO Peter Geddis, a former Executive Vice President and Chief Operating Officer of Qwest Communications (NYSE:Q). The Company recently acquired Medical Office Software Inc. diversifying its communications technology offering into the healthcare industry. RKM IT Solutions of Caracas, Venezuela was also recently acquired as IPVO's entry into the Latin American market. This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the risks inherent in the integration of Infotel Technologies into IPVoice Communications, Inc. business, the ability of IPVoice to restore and stabilize the client base of Infotel and re-establish relationships with key suppliers, the development and market acceptance of the products and services of the combined companies, demand for the telecommunication and other products and related services, domestic and foreign government spending, budgetary and trade policies, economic and political changes in the domestic and international markets where the Company competes, successful deployment of advanced technologies, competitive product and pricing pressures as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission. KEYWORD: INTERNATIONAL LATIN AMERICA INTERNATIONAL ASIA PACIFIC TEXAS INDUSTRY KEYWORD: TELECOMMUNICATIONS E-COMMERCE INTERNET SOFTWARE HARDWARE EARNINGS SOURCE: IPVoice Communications, Inc. CONTACT INFORMATION: IPVoice Communications, Inc., Dallas Investor Relations, 972-386-3372 ext. 211 ir@ipvoice.com www.ipvoice.com
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