posted
Initial Pilot Testing Concludes, Yields Crystal Clarity at Half-Mile Range with Regular Household Telephone
3/29/2006 GlobeTel Wireless, subsidiary, has confirmed that it has begun its pilot testing of the contemplated wireless system for up to 20 Mexican cities.
The proprietary GlobeTel Wireless technology for this project combines DECT and Wireless Broadband competencies. Last week the HotZone 4010 was successfully tested in Mexico City, confirming the range of the DECT/VoIP application with an 800-meter or one half mile cell radius. There were no additional CPE (Customer Premise Equipment) devices required in the testing.
The first Mexican city in which the system will be deployed is Monterrey.
Previously, GlobeTel Communications Corp. de Mexico S.A. de C.V., Marcatel S.A. de C.V. and BTC S.A. de C.V. had agreed to test and develop a wireless communications system in up to 20 cities in Mexico.
The City of Monterrey is the third largest city in Mexico and has nearly 1.2 million inhabitants, with a total metropolitan area population of about 3.9 million, roughly the size of the Detroit metropolitan area. Monterrey is in the northern state of Nuevo Leon, about an hour and a half driving distance from the Texas border.
Marcatel is one of the largest carriers in Mexico, providing service to over 80,000 business customers through its 20 customer care centers located throughout the country. The company offers voice services, carrier infrastructure, and IP and data solutions. Marcatel provides integrated communication services including local telephony, long distance, 800 numbers, and prepaid calling cards, calling cards with international coverage, as well as telephony administration and cost-control systems. Marcatel's IP broadband data services include Internet access using DSL, dedicated and wireless access, dial-up and private lines. The company also provides carrier services, such as dark fiber, private lines, and co-location and spectrum frequencies for microwave access, as well as Contact Center services that complement its offerings to provide the best integral solutions for their clients.
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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quote:Originally posted by Edster: I guess we should be expecting some fnancial information being released here shortly. I do not remember seeing the Oct-Dec 2005 quarterly financials.
4Q due before 3/31, and Tim Huff did say they would release revs a few days early. Also new COB is to be announced this week. Might get us a nice spike out of the deal. GLTA!!
I guess the "few days early" may be a few hours early.
Posts: 230 | From: Virginia | Registered: Mar 2005
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Tim might be waiting for additional news coming ??
-------------------- "Whether you think that you can, or that you can't, you are usually right." - Henry Ford Posts: 798 | Registered: Jun 2004
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Mar 30, 2006 (M2 PRESSWIRE via COMTEX) -- **********, www.**********, announced today that these select companies have been added to the NASDAQ, AMEX and NYSE naked short threshold lists: Cytori Therapeutics Inc (NASDAQ: CYTX), GameTech International, Inc. (NASDAQ: GMTC), GlobeTel Communications Corp. (AMEX: GTE), QualMark Corporation (OTCBB: QMRK), SmartVideo Technologies, Inc. (OTCBB: SMVD), Fonecash, Inc. (OTCBB: TTMD). For a complete list of companies on the naked short lists please visit our web site. To find the SqueezeTrigger Price before a short squeeze starts in any stock, go to www.**********.
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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posted
Does being placed on the naked short threshold list mean that if there is good news coming out - then the price will go up quicker as the shorters cover there short sales????
Posts: 230 | From: Virginia | Registered: Mar 2005
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quote:Originally posted by Edster: Does being placed on the naked short threshold list mean that if there is good news coming out - then the price will go up quicker as the shorters cover there short sales????
That is the popular line of thought, especially since there is a legal 6.6MM short position declared at the moment as well.
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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FORT LAUDERDALE, Fla., Mar 31, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (GTE, Trade) reported its results for the fiscal year ended December 31, 2005.
For the year ended December 31, 2005, GlobeTel reported gross revenues of $81,143,838, an increase of 179.8% over gross revenues of $28,996,213 for the prior year ended December 31, 2004. The revenue increase is attributed primarily to increases in wholesale carrier traffic revenues (telecommunications minutes) and related network management fees from GlobeTel Communications Corp. wholly owned subsidiary, Centerline Communications and its subsidiaries. Centerline and its subsidiaries recorded consolidated revenues of $71,968,367 (or 88.7% of total revenues).
The Company reported a net loss for the year ended December 31, 2005 of $33,183,395, or $0.44 per share, compared with a net loss $13,166,869, or $0.26 per share, for the year ended December 31, 2004. The net loss was attributable largely to operating expenses of $31,856,495, compared with 2004 operating expenses of $12,850,250. These costs were incurred in conjunction with GTE's rapid growth, acquisitions, staffing requirements and expenses related to Sanswire and GlobeTel Wireless. The Company's operating loss of $31,442,798 for fiscal year 2005, compared with an operating loss of $13,041,451 for fiscal 2004, was heavily impacted by one-time, non-recurring charges and non-cash transactions totaling $18,726,304. Without such charges, the operating loss would have been $12,716,490. Such costs are attributed primarily to increased overall operating expenses, including higher operating costs and expansion of the Company's various programs. The Company expects operating costs to remain high as it expands operations, programs, projects and the staff to accommodate its growth in the US and overseas.
Timothy Huff, CEO of GlobeTel Communications Corp., stated, "Overall, 2005 was a remarkable year for GTE. While our net loss is significant, the advancement of the business has likewise been significant. GlobeTel Communications Corp. is a business comprised of five business units. During 2005, we began the transition from R&D to Sales and Marketing and business execution, and we invested in our infrastructure. Operating in an entrepreneurial environment, the team has positioned the business units for significant growth in the coming quarters. We believe the overall value created for the future GlobeTel Communications Corp. far outweighs the expenses incurred during the year. We are especially pleased with the strength of our Balance Sheet and the fact that GlobeTel Communications Corp. today carries no long term debt.
"During 2005, we made a number of strategic moves to bring our Company closer to fulfilling its mission of enabling individuals and organizations to communicate, interact and transact anywhere in the world at any time. Below are some of the key initiatives executed during the year:
-- The company transitioned its shares from the OTCBB to the American Stock Exchange;
-- The Company's shares were added to two Indexes. Russell 2000 and Russell MicroCap Index;
-- Three Stratellites(TM) were successfully tested, Sanswire I, Sanswire II and the military prototype;
-- The wholesale carrier business expanded its facilities and equipment to increase revenue;
-- GlobeTel Wireless was established and successfully tested in Mexico and Russia;
-- StrateVoIP, the company's VoIP product, was launched;
-- The Stored-Value Program was launched.
Mr. Huff continued, "The GlobeTel Board of Directors has been joined by proven, globally recognized business leaders Messrs. J. Randolph Dumas and Dorian Klein, and by our new Audit Committee Chairman, Michael Castellano, all of whom have been pro-actively involved in shaping the future of the Company."
J. Randolph Dumas, newly-appointed Chairman of the Board of GlobeTel Communications Corp., has issued a letter to GTE shareholders, providing more thorough information on the business and its initiatives. This Chairman's Letter can be found on the corporate web site at http://www.globetel/about/letter033106.html
Additionally, GlobeTel shareholders who have opted to receive news and updated corporate information via e-mail, will receive Mr. Dumas' letter directly. The Company encourages those shareholders who may wish to opt-in to do so by notifying the Company at investors*globetel.net.
GlobeTel Communications filed its 2005 Form 10-K with the SEC today and it will be available on the Company's web site at http://www.globetel.net. Any person interested in receiving a copy of the 2005 Form 10-K and other public documents can request copies by writing to the Company: GlobeTel Communications Corp., 9050 Pines Blvd., Pembroke Pines, Florida 33024.
About GlobeTel Communications Corp.
GlobeTel Communications Corp. develops and provides an integrated suite of telecommunications products and services, leveraging its advances in Stored Value, VOIP and Wireless Access technologies. Individually, each of GlobeTel's five business units function as distinct, strong stand-alone entities: Together they form a powerful alliance of human talent and technological innovation resulting in the SuperHub(TM) worldwide VOIP network, Sanswire Stratellite(TM) platform and products enabling simpler, cheaper transmission of voice, data and money. GlobeTel has historically focused its business development on markets outside of the United States. Current and pending operations exist in Asia, Europe, South America, Mexico and the Caribbean.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Placement Act of 1995. The words "forecast", "project", "intend", "expect", "should", "would", and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements. The above are more fully discussed in the Company's SEC filings.
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the 12 months Ended December 31, 2005 2004 ---------------------------------------------------------------------- REVENUES EARNED $ 81,143,838 $ 28,996,213 COST OF REVENUES EARNED 80,730,141 29,187,414 ---------------------------------------------------------------------- GROSS MARGIN (LOSS) 413,697 (191,201) ---------------------------------------------------------------------- EXPENSES Payroll and related taxes 3,118,676 1,248,562 Consulting and professional fees 6,200,054 2,206,237 Officers' and directors' compensation 12,082,809 6,520,206 Bad debts 1,373,458 1,141,534 Investment banking and financing fees 2,018,985 172,106 Investor and public relations 550,460 117,856 Commissions expense - related party Carrier Services, Inc. 848,880 404,747 Research and development - Sanswire 2,364,673 260,085 Other operating expenses 826,101 156,011 Telephone and communications 200,129 75,390 Travel and related expenses 882,557 240,862 Rents 480,995 126,424 Insurance and employee benefits 672,700 126,644 Depreciation and amortization 236,018 53,586 ---------------------------------------------------------------------- TOTAL EXPENSES 31,856,495 12,850,250 ---------------------------------------------------------------------- LOSS BEFORE OTHER INCOME (EXPENSE) AND INCOME TAXES (31,442,798) (13,041,451) ---------------------------------------------------------------------- OTHER INCOME (EXPENSE) Net gains on settlement of liabilities - 268,397 Loss on disposition of property and equipment - (56,804) Loss on settlement (1,256,873) - Loss on disposition of unconsolidated foreign subsidiary - CGI (352,300) - Loss on equipment deposit (149,558) Loss on discontinued operations - - Loss on write-off of receivables and non-readily marketable securities - - Interest income 44,368 2,067 Interest expense (175,792) (189,520) ---------------------------------------------------------------------- NET OTHER EXPENSE (1,740,597) (125,418) ---------------------------------------------------------------------- LOSS BEFORE INCOME TAXES (33,183,395) (13,166,869) INCOME TAXES Provision for income taxes - - Tax benefit from utilization of net operating loss carryforward - - ---------------------------------------------------------------------- TOTAL INCOME TAXES - - ---------------------------------------------------------------------- NET LOSS ($33,183,395) ($13,166,869) ====================================================================== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC 75,072,487 49,892,551 DILUTED 75,072,487 49,892,551 ====================================================================== NET LOSS PER SHARE BASIC ($0.442) ($0.264) DILUTED ($0.442) ($0.264) ======================================================================
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, 2005 December 31, 2005 December 31, 2004 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,228,180 $ 601,559 Restricted cash 1,122,000 - Accounts receivable, less allowance for doubtful accounts of $409,100 and $1,505,731 371,618 1,740,883 Loans to employees 46,068 6,885 Prepaid expenses 370,394 58,900 Inventory 67,525 63,976 Deposits on equipment purchase 124,993 88,994 Deferred tax asset, less valuation allowance of $9,828,700 and $5,163,407 - - TOTAL CURRENT ASSETS 3,330,778 2,561,197 PROPERTY AND EQUIPMENT, net 7,028,422 445,756 OTHER ASSETS Investment in unconsolidated foreign subsidiary - Consolidated Global Investments, Ltd. - 352,300 Intangible assets 9,907,550 2,778,000 Deposits 52,322 50,712 Prepaid expenses - 8,012 TOTAL OTHER ASSETS 9,959,872 3,189,024 TOTAL ASSETS 20,319,072 6,195,977 LIABILITIES AND STOCKHOLDERS' EQUITY COMMITMENTS AND CONTINGENCIES (NOTES 6, 7, 17, AND 18) - - LIABILITIES CURRENT LIABILITIES Accounts payable 907,211 456,248 Current portion of long-term debt - 2,846 Due to related party - Carrier Services, Inc. 901,606 - Due to former employee payable in GTEL stock 237,600 - Due to related party payable in GTEL Stock - Hotzone Wireless, Inc. - short-term portion 2,451,834 - Accrued officers' and directors' compensation 97,382 198,333 Accrued expenses and other liabilities 545,636 93,436 Deferred revenues - 46,319 Related party payables 57,500 117,500 TOTAL CURRENT LIABILITIES 5,198,769 914,682 LONG-TERM LIABILITIES Due to related party payable in GTEL Stock - Hotzone Wireless, Inc. 4,708,167 - Capital lease obligations - 4,718 TOTAL LONG-TERM LIABILITIES 4,708,167 4,718 TOTAL LIABILITIES 9,906,934 919,400 SOURCE: GlobeTel Communications Corp.
GlobeTel Communications Corp., Fort Lauderdale Robert Bleckman, 954-775-1427 Copyright Business Wire 2006
-------------------- "make some heat and get happy" Posts: 28 | From: detroit | Registered: Apr 2005
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Ive never thought those after hours sales were much indication of what the stock will do the next day... Peaser...whats your take on the fiscal report? Just a rehash of what they have accomplished from what i can tell. which is alot... I think its good, but youre more adept at this.. Pagan, please jump in if youre around
-------------------- jordan Posts: 5812 | From: st paul,mn | Registered: Feb 2004
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Well, what I read into it is that they are putting the money that they are making on the card program, back into the strat program.
Overall, I read it as no better, or worse than the last filing. The positive thing was that revenues have been increasing. The accomplished goals that were mentioned seemed a little fluffed up to me though, as I have not yet heard of GTE putting the strat up in the air 13 miles as of yet. I don't see that as a negative though.
Have to wait and see how the market reacts on Monday.
-------------------- Buy Low. Sell High. Posts: 10750 | From: The Land Of The Giants | Registered: Feb 2005
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quote:Originally posted by jordanreed: Ive never thought those after hours sales were much indication of what the stock will do the next day... Peaser...whats your take on the fiscal report? Just a rehash of what they have accomplished from what i can tell. which is alot... I think its good, but youre more adept at this.. Pagan, please jump in if youre around
The numbers were about what was expected. With all the acquisitions, R & D, and expansion in 2005, the losses are fairly mild compared to the potential that is now in play from all business divisions of Globetel. And, they are debt free. Thats a major point IMO. But with that said, there will probably be a dip Monday, will be a good time to re-establish swing positions. I would expect the dip to be fairly mild and only last maybe a day or two, if that. I would also expect some other PR next week. And remember the 1Q just ended, so guidance and/or 1Q numbers should be along shortly. And the Russian deal is still out there hanging...
Read the Letter to Shareholders from the new Chairman of the Board below, and I think you'll get a better insight into Globetel's future.
A MESSAGE TO OUR SHAREHOLDERS FROM CHAIRMAN J. RANDOLPH DUMAS
Dear Fellow Shareholders:
I am constantly asked by my friends and colleagues: “What is GlobeTel?” If you happen to be one of GlobeTel’s more than 37,000 long-standing shareholders —many of whom exhibit an almost cult-like dedication to the company— this probably sounds like a silly question. In fact, as the new Chairman of GlobeTel, I must confess that I spent more than a year attempting to get my arms around the many technology and business strategy nuances which are really critical to understanding this vibrant, outside-the-box company. Indeed, it is GlobeTel’s “mining” of these very nuances which is allowing it to break virtually all the rules of traditional telephony, while creating new wireless paradigms which will re-define digital communications in the immediate future.
For the many thousands of you who have closely followed the evolution of the company over the past three years— we hope that you have marveled, as we do every day, at the dramatic transformation of what was, so recently, nothing more than an odd little company with a nine million dollar market cap. Oh yes, to be fair: three years ago, when the young engineering visionary, Tim Huff, arrived at the entity that would become GlobeTel, it had an OTC Bulletin Board listing, it had a one cent share price, it had a confusing and rather unappetizing history, and it had no products or strategy. Under Tim’s nurturing eye, the company soon brought aboard a small group of dedicated employees whose ranks continued to swell as the business began to take shape and move in new directions.
Today, GlobeTel is truly a global business. With roughly a $250 million market cap, a share price which is more than 15 times its level only three years ago, a headcount approaching eighty (still largely made up of some of the most entrepreneurial engineers in the world), a powerful, reconstituted Board of Directors with experience and access at the highest levels, and with a unique strategy built around five different (but highly synergistic) digital business lines, the company is positioned for explosive growth as it rapidly transitions from a highly innovative R&D company into a global Sales, Marketing and Project Management organization with impressive new business initiatives underway in more than 25 countries around the world— including in China and India.
Is the strategy huge and challenging? Yes. Does it seem to represent an eclectic collection of cutting-edge technology opportunities that even some institutional investors find daunting? Yes. Does this multi-prong strategy make sense? Absolutely! In fact, for investors willing to take the time to truly understand what is going on at GlobeTel, it becomes evident that GlobeTel has thought about, and understands, the “puzzle” of the digital marketplace in a way that few other companies do. In fact, the company’s strategy has been woven around Tim Huff’s vision (which he first discussed with me more than 15 years ago at the young age of 26) “that the world of communications, in all its forms, must ultimately become interconnected and completely seamless.”
As I watched Tim’s professional career progress rapidly over the years, with startling levels of responsibility given to him at a very early age at the top of the technology ranks of MCI and Sprint, and later in his own, entrepreneurial businesses built around his growing vision of where the communications business would be going, I had a powerful sense that the young engineering genius that I had met earlier, would someday find a way to make his vision come to fruition.
Some years later (indeed, only a year and a half ago), Tim re-appeared before me in London— completely unexpectedly. He had become a 40-year-old man, fully formed, a little grey at the temples, full of energy and enthusiasm and as intellectually adept as ever. He told me he’d been waiting for the right time to get me involved in his vision, initially as a possible investor. And, he said the right time was now. He told me of his decision, eighteen months earlier, to “back into” a public company vehicle (today’s GlobeTel), as a means of achieving his dream of creating a “Super-Hub” (a global, entirely private internet). We discussed it. I researched it. We discussed it some more. And, nearly a year after this meeting, I agreed to join the company as its Vice Chairman. Since then, in the face of some early head scratching and head shaking by my private equity partners, I have become completely entranced by Tim’s vision of the Super-Hub and by the certainty that his vision can be achieved. Much of this certainty is unquestionably due to a flurry of major technology breakthroughs in recent years. But my deep conviction in the achievability of Tim’s vision of the Super-Hub is due, equally, to the creative organization that he has built virtually from scratch in order to break the wireless “sound barrier.”
By quickly moving the wireless model well ahead of the pack, and we are doing it now, we are creating unprecedented commercial benefits for businesses and exceptional social benefits for the billions of our fellow global citizens who cannot access the wonders of the 21st century. This fascinating organization is built, much like the Super-Hub, around a central corporate structure which serves as a virtual “incubator” for each of the five businesses which are about to put GlobeTel on the international technology map in a big way. Let me tell you about them.
GlobeTel Wireless Division. Under the inspired leadership of Ulrich Altvater, our GlobeTel Wireless Division has, to our almost certain knowledge, leapt significantly ahead of all our possible wireless competitors. Our remarkable wireless solution is currently being installed in Mexico, Malaysia, China and Germany, in significant municipal areas that will eventually average 400 to 600 square kilometers— with the ability to provide ultra-high-speed broadband/DSL and mobile DECT-VoIP telephony to millions of users who previously had no access to such service. Our proprietary Hotzoneä 4010 wireless communication system offers dramatically lower equipment, installation and operating costs than any of our competitors, and at a cost that makes these services accessible by the average man-on-the-street in these important emerging economies. And, of course, our system completely eliminates the “last mile problem”— a problem which has caused incumbent telecom companies around the developed world to pour literally billions of dollars into the ground in the pursuit of customers connected via fiber-optics or “conditioned” copper-pairs. This hugely expensive “trenching strategy” will be a thing of the past if we have anything to say about it. With our over-riding focus on the emerging markets, we see the opportunity to not only do well (very well), but to do good. Soon-to-follow upgrades to our Hotzoneä system will include the marvel of IPTV — bringing thousands of channels of television from around the world into millions of homes — wirelessly. At the moment, GlobeTel Wireless is our leading contender for near term profitability on a significant scale. Like the other Divisions, GlobeTel Wireless will achieve its greatest potential when it is integrated with our (i) Stratelliteä near-space airship, (ii) our “Magic Money” digital, Stored Value Cards, (iii) our StrateVoIP telephony services, and (iv) our Centerline switching backbone which will tie many of these services together into a neat GlobeTel bundle.
Magic Money Stored Value Division. After two years of long, hard, technical and regulatory brain damage, Division Head Joseph Serrousi and his team have reached “lift off.” Magic Money has produced what seems to us to be immediate potential for almost unprecedented revenue generation linked to the digital sorcery of our GlobeTel Magic Money system. What has been sculpted, shaped and developed over these two long years — at great R&D expense — is a digital system which gives us the ability to reach that 90% of the global population that is “un-banked” and that, as a result, has absolutely no access to bank accounts, credit cards, affordable telephony or reasonably-priced money-remittance mechanisms.
In an exclusive Joint Venture with Travelex, the world’s largest retail foreign exchange business, our Stored Value Division has just installed our first Point-of- Sale terminals located in what will eventually be more than 6,000 retail locations around the U.S., allowing this un-banked community to “load” (endow with value) their Magic Moneyä digital cards which will, in turn, give these customers the ability to access low-cost, pre-paid, VoIP telephony services from any phone-box in the world and, separately, to transfer moderate amounts of money around the world (under $5,000 in order to fully conform to the Patriot Act, FDIC and other federal and state regulations relating to money movements) to their friends and to their family members at very low cost. And all of this will be processed through our MasterCard certified switch, which will take over transaction processing this month.
Conceptually, the ability to create “virtual wallets” (i.e. stored value) using global, high security, digital networks will allow several billion people around the world to “digitize” their cash hoards for secure storage and for secure remittance to any other person in the world who has access to a telephone (and, of course, to a Magic Money card). This is, statistically, (to the extent that it can be measured), a market exceeding a half trillion dollars per year. And, in fact, it is really only an embryonic market at the moment because, until now, the technology has not existed to create such a virtual, digital financial services (and IP-based telecommunications) system— all targeted directly, and almost exclusively, at those “forgotten” members of the global economic community.
In India, for example, in an exclusive partnership with the largest financial processor in the country, FSS (partly owned by the Carlyle Private Equity Group, of which President George H. W. Bush is a Senior Advisor), our Magic Moneyä Division will shortly enable more than 25 million, existing debit card holders to become immediate members of our Magic Moneyä network, giving them access, at very low cost (i) to money remitted from relatives abroad, and (ii) to inexpensive telephony so that they are able to stay in touch in a way that was unimaginable even a year ago. A remarkable breakthrough. The money remittance market alone is projected to grow to $257 billion per year by 2009. And, GlobeTel’s Magic Moneyä Division expects to be one of the near term leaders in capturing a large part of this market through its unique digital technology in major remittance markets and, ultimately, globally, through its Super-Hub. Full Divisional profitability expected in the third quarter of this year.
GlobeTel VoIP Division - StrateVoIP Okay, no doubt your initial reaction to any VoIP telephone service is: so what? You know about VoIP via Skype. You know about VoIP via Vonage. But, you have to know about VoIP via GlobeTel in order to really understand how exceptionally insightful the engineers at our company can be about what others might view as a commodity telephony market. At GlobeTel, our amazing VoIP team has cunningly focused its platforms, its marketing, its pricing and its quality voice services on narrowly-defined, niche, “ethnic” markets (eth – nick. adj. Of, or relating to, a sizeable group of people sharing a common and distinctive national, religious, linguistic, racial or cultural heritage.) The first of these highly targeted VoIP initiatives is focused on such an ethnic minority community based in our home state: Brazilians living in Florida with many relatives in Rio and Sao Paolo. At the moment, the costs of telephone calls between Florida and Brazil, and between Brazil and Florida are (i) hugely expensive using their incumbent carriers or (ii) neither user-friendly nor ethnically-friendly when using other VoIP providers.
Our approach is to tailor our services to meet the special needs of these special communities who reside in large numbers throughout the United States. In particular, in our first Portuguese-language-focused VoIP roll-out, we will very soon be able to provide Portuguese speakers in Florida and in Brazil with a “local telephone number” which, using our highly proprietary, in-house developed platform, will make it possible for a nephew in Rio to call an uncle in Ft. Lauderdale by dialing a local Rio number, as if the uncle lived across the street. Likewise, for the uncle in Ft. Lauderdale, he will now be able to dial a local Ft. Lauderdale number in order to speak to his grandson in Sao Paolo, etc. And, this will all be achieved at a small fraction of the cost of the available alternatives.
Our GlobeTel VoIP Division, operating under the dazzling technical and commercial insights of its President, Dan Erdberg, has developed two “ethnic portals” on the internet which will allow customers in both Brazil and in the U.S. to quickly, easily and cheaply become GlobeTel VoIP customers in a matter of minutes using our web-based, interactive technology which makes the sign-up process a snap and the user-friendliness unprecedented.
The objective for our VoIP Division for the remainder of this year and into the next will be to create a network of such platforms which are intertwined through our proprietary VoIP system, giving users expanded reach to both members and non-members of their ethnic communities around the world. Simultaneous with these initiatives, which we anticipate will produce a Divisional breakeven in the third quarter and significant profit in the fourth quarter, the Division is also working aggressively to integrate its unique technologies into the Hotzoneä Wireless system which will add a multitude of new applications and opportunities as GlobeTel Wireless rolls out its wireless networks around the world. This represents another strand in the ultimate Super-Hub strategy, while creating significant stand-alone profitability in the meantime.
Centerline. Centerline is probably our most challenging business, because its revenue base sits squarely in the middle of pricing models driven by white markets, grey markets and even some “black” markets in the global market for voice termination traffic. It is, in short, a commodity business based on the most competitive pricing for the termination of telephone calls over the incumbent networks. Frankly, it’s a business that can be described as “difficult, on a good day.” However, because we happen to have one of the smartest, toughest and best “traders” in the business running our Centerline Division, Joe Monterosso, we have been able to establish this as a significant revenue generator for the company. And, its revenues are growing by the day. We are helped by the fact (and this is part of our secret) that we have recently installed our wholly-owned, state of the art, VOIP and TDM switches at our main Network Operating Center.
While Joe was able to eke out a profit before the installation of our own switches, it amounted to daily hand-to-hand combat in order to compete with the other traders in the gladiatorial pit of commodity terminations. While each day is still very much gladiatorial in nature, Joe has now professionalized his operation to such a level that when, married to his own personal reputation, an increasing number of major incumbents are coming to him, in order to squeeze the other grey market players from what he politely terms “the market.”
Joe’s profitability is expected to continue to increase over the course of this coming year— stabilizing at what we anticipate will be a gross profit margin something on the order of $500,000 to $750,000 per month. And, this reliable revenue source has, and will continue to be, important to us while our other Divisions complete their run-up to profitability during 2006. Another secret, by the way, is that Joe’s company-owned switches, combined with his significant network of fiber-optic cable leases— will form a valuable part of our global Super-Hub, once it is in place.
Sanswire— The Stratellite. The icing on the cake of the GlobeTel strategy (and admittedly, the butt of some unfounded jokes from the tabloid financial press) is our near-space digital platform, called the Stratelliteä. This rigid airship (not a blimp, not a balloon as the pundits remind us), when it becomes operational later this year, will produce what we believe will be the single greatest revolution in communications technology in the history of the world. Sure sounds like an outlandish statement, doesn’t it? And, I admit it is hard to make such a statement in an annual report to the Shareholders of a public company. But, if the regulators will allow me to get away with saying it, I have to say it, because I firmly believe it.
What makes the Stratelliteä so special is that it will provide (i) an incredibly cheap (ii) fully-recoverable (iii) high altitude (13 miles from the surface of the earth) (iv) stable, geo-synchronous digital equipment platform— that will flood more than 125,000 square miles beneath it with every conceivable flavor of digital radio spectrum. “The Highest Tower in the Sky” is the way we think about it, except that unlike ugly cell towers which blight our landscapes and whose signals are blocked, diverted or diminished by surface obstacles (hills, trees, buildings, etc.), our Stratelliteä will have a direct, vertical, line-of-sight shot immediately beneath it with no obstacles in the way of its signals— whether broadband signals, cellphone signals, IPTV signals, data signals, infra-red photography, high resolution photography, electromagnetic sensors, radar, etc.
When (i) integrated with our GlobeTel Wireless installations on the ground (all mounted on a series of roof-top masts about six feet tall), (ii) tied into our VoIP platforms, (iii) meshed with our Magic Moneyä digital stored value cards, and (iv) married to our Centerline terrestrial backbone and switches — we will have a remarkable, entirely private, subscriber-only, world-wide web with the ability to provide — wirelessly — (i) mobile and fixed line telephony, (ii) very high speed broadband (iii) IPTV, and (iv) security, educational, medical, environmental and other data services, all at remarkably low prices. This … is the Super-Hub.
While the successful, commercial deployment of the Stratelliteä will surely add a large measure of synergy and “market reach” to the GlobeTel strategy (allowing us to communicate wirelessly with literally every human being on the face of the earth), it does not define GlobeTel. It is simply the final brush stroke on the canvas which will bring our other four digital businesses— which in at least two cases (GlobeTel Wireless and Magic Money) have the capability to become multi-billion dollar companies in their own rights— under a single, integrated umbrella to form a worldwide Super Hub.
The Sanswire team is planning to flight test Sanswire II, our final “technology demonstrator”, in the immediate future at Edwards Air Force Base. Currently, Sanswire II is undergoing various systems tests and systems integration at our Palmdale, California facility. We’re waiting for clearance from the Edwards Range for the test flights. Having floated Sanswire II in the California desert at the end of February, our Stratelliteä Division, under the energetic and visionary leadership of former NASA Director and decorated Air Force Pilot, Bob Jones, is now prepared to commence its high altitude testing in June, and continue through the summer. First, however, there will be further testing of various subsystems leading to further tethered flight tests. The tethered tests will be followed by un-tethered taxi tests at Palmdale, which is located just a short distance from Edwards AFB. After validating and completing the Combined Systems tests, we will conduct an un-tethered flight test at Edwards, and this is when we will be preparing ourselves, shortly thereafter, to break the World Altitude Record for an Advanced Rigid Airship.
Our Stratellite airship - for the technically-minded among you - utilizes a state-of-the-art carbon composite frame integrated into an advanced envelope, with power generation from photo-voltaic panels attached to the envelope. Using the latest battery storage technology and electric engines to power the airship, we believe we have the ability to keep the airship aloft, and in position, for many months on end.
Simultaneously, plans are currently underway to begin construction of Sanswire III, our first commercial variant, for expected delivery to a Latin American country for use in digital communications and border security. The completion, final testing and delivery of Sanswire III is targeted for early 2007. From there, we hope the world will be our oyster.
Conclusions. When I sat down to write this letter to our shareholders, I asked myself: “If I were a shareholder of this company, what would I like to know?” After reflecting on the question, I concluded that I would simply like to hear an honest, comprehensible statement about what this, sometimes confusing, company is really all about. I realized, because of my personal enthusiasm, that there was a risk of communicating something that might sound more like an advertising commercial than a cut-and-dried statement of the financial facts. If what I have produced here sounds too much like a Ferrari commercial, I apologize. But, I have genuinely tried to convey the very exciting facts to you as I understand them.
I am no engineer. I am a businessman with a lot of years under my belt— working in virtually every sector and in virtually every market around the world. And, indeed, it is this background and this perspective that attracted the company to me, and me to the company. My job, as I see it, is to do everything professionally possible, in concert with our CEO and his management team, to ensure that GlobeTel achieves its great potential. As a shareholder myself, and as one of your most committed representatives — along with my fellow Board Members — I am convinced that we have an exceptional opportunity to create new markets, create new business models, reach new constituencies, generate exceptional profits and, also, to do some good for the world. Nothing in life is ever certain, of course. And at GlobeTel — because we are inspired everyday by our supporters and diverted by our detractors— we are fully attuned to the fact that what we are striving to do has few precedents. But, we believe in what we are trying to do, down to our toenails.
The greatest revolutions in history have had few or no precedents. I am often reminded of the London Times description of Alexander Graham Bell: “He is an ‘impostor’, a ‘ventriloquist’, a ‘crank’ who says he can talk through a wire.” Or the New York Herald’s statement that his (technology) is “weird, almost supernatural.” Clearly, we assume we are beyond the plague of petty superstitions and skeptical, uninformed “journalists.” But, in many ways we are not. We remain perplexed by the handful of casual, uninformed, tabloid press artisans who simply fail to do their homework, fail to investigate the facts, debunk original research and, instead, fly into the grasping arms of their flighty, gossip-mongering readership. But, perhaps this is the way it has always been.
To you, our shareholders, I can only assure you that you have one of the most committed, dedicated, hard working, focused and energized management teams to ever occupy the American Stock Exchange. We eat, sleep and breathe GlobeTel. We believe, as we rush to populate our management ranks with more high quality, deeply experienced, international business executives, that the next stage of the company’s growth is now at hand. Our R&D costs and our capital expenditures are behind us and, now, this is the year for ramping up our people resources and our operating profits. Our expanding management team has as its mantra: Deploy the technology. Generate the revenues. This, during the remainder of 2006, is our overwhelming focus. We are striving to make every Division in the company profitable by year-end. Considering the unique, highly marketable technologies that we have created and the many markets that we are already tapping, the future for GlobeTel and its owners (i.e. you and me) has never looked brighter. We thank you for continued support and hope to reward you handsomely for it.
J. Randolph Dumas Chairman of the Board GlobeTel Communications Corp.
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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AH means nothing....it in no way affects the opening price for the next day, either....my take is that it's just the MM's way of trying to make some extra money by playing games with the investors....thus the AH markets can be dangerous to trade in. With USXP, the same exact thing happened both AH and Pre-Market during the days it had big runs
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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quote:Originally posted by imakmony2005: 2.29 BUYING OP??
Looking like a bottom forming here.
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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Hope this doesn't fall too much more. A little bump up at yesterday's close - hopefully is a sign that the selling pressure may be starting to ease a bit.
Posts: 230 | From: Virginia | Registered: Mar 2005
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GlobeTel Communications Sets Annual Meeting Date Business Wire - April 05, 2006 09:45
FORT LAUDERDALE, Fla., Apr 05, 2006 (BUSINESS WIRE) -- The Board of Directors of GlobeTel Communications Corp. (AMEX:GTE) has set Wednesday, June 21, 2006 as the date for the company's annual meeting of stockholders, for stockholders of record as of April 28, 2006. The meeting will be held at the Grand Palms Hotel - Spa & Golf Resort, 110 Grand Palms Drive, Pembroke Pines, Florida, at 10 a.m. (EDT).
Shareholders planning to attend the meeting can obtain information and directions to the Grand Palms from http://www.grandpalmsresort.com . GlobeTel has arranged a special rate at the Grand Palms for shareholders planning to attend the meeting: $84 per standard room or $99 per suite, plus tax. Shareholders interested in attending the event should contact the hotel directly for their reservations.
Posts: 230 | From: Virginia | Registered: Mar 2005
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Very quiet in here. No news appears to be comming forth in the near future. This pps may steadily drift down and be in the 1.80's by the time the stockholder's meeting in June. I ned to get it back up to the 2.90 level just to break even Posts: 230 | From: Virginia | Registered: Mar 2005
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quote:Originally posted by Edster: Very quiet in here. No news appears to be comming forth in the near future. This pps may steadily drift down and be in the 1.80's by the time the stockholder's meeting in June. I ned to get it back up to the 2.90 level just to break even
I am confident that there will be plenty of excitement between now and June. I loaded several tiered swing positions and I am ready for many different levels to the upside. Look at the current/historical chart and you can see we are due a major spike. RSI is showing way oversold, and has a history of bouncing at these levels. GLTA!!
Posts: 3311 | From: St. Louis | Registered: Feb 2005
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What ever happened to the Russian deal.... they must be waiting to close another deal before they announce the russian deal dead.
Posts: 274 | From: union,nj,usa | Registered: Jan 2004
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Down another .08 so far today. That makes seven straight days of losses. The stock closed at 2.54 on 29 Mar. Unless we get some good news here shortly, there may be no way of stopping this steady errosion in pps. We could quickly break the 2.00 barrier unless something good happens soon.
Posts: 230 | From: Virginia | Registered: Mar 2005
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imakmony2005
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Got 500 more at 2.16 it will go.IMO
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How frustrating has this stock been! Have held this for more than a year, and while I did cash out part of my position when this was close to its high (playing with free shares was too good to resist), I have really been rooting for these guys and want to see us all get a nice payday.
What are the upcoming key dates on the calendar? How long do we need to wait to see this one pop?
Posts: 7 | From: NY City | Registered: Aug 2005
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quote:Originally posted by BuyTex: funny, JML, perhaps like you I wanted to buy in, see the Strat fly, then retire...
but, it *has* been a swing-trader's dream...
Yes it has!!!!
Just think.....if you dropped $10,000 in when it was $1.30 in september 05 and sold at $4.00 in december than dropped all the proseats back in at $2.25 and then sold again in january at $4.00 then bought back in in feb at $2.75, then sold again in Feb at $3.50 than dipped in again in march at $2.75 and sold at $3.75....you would have:
$94,935
I'm looking to jumping back in when it dips below $2.00....my entry target is $1.80-2.00.
Posts: 2367 | From: Detroit | Registered: Mar 2005
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