GlobeTel Communications Reports First Quarter 2006 Results Friday May 12, 6:58 pm ET
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 12, 2006--GlobeTel Communications Corp. (AMEX:GTE - News) reported its results for the quarter ended March 31, 2006. During the quarter, the Company achieved revenue of $22,294,725, or 24% more than revenue of $18,010,643 reported for the first quarter 2005 and a 5.5% sequential rise over fourth quarter 2005 revenue of $21,133,147. The Company reported a net loss of $3,510,358 for the quarter ended March 31, 2006, compared to a net loss of $3,600,053 reported during the first quarter of 2005. The first quarter 2006 net loss, compared sequentially, is about 80% less than the prior quarter's, fourth quarter 2005, net loss of $16,430,767. ADVERTISEMENT
Of the $3,510,358 reported as net loss, $582,224 is attributable to non-cash items, resulting in a net loss before non-cash items of $2,928,134. Timothy Huff, GlobeTel Chief Executive Officer, said, "Our net loss for the first quarter of 2006 was relatively flat, but smaller, compared to last year's first quarter, and a vast improvement over our previous quarter. This is our smallest quarterly loss of the last four quarters. This was achieved while the company was investing to expand all five of its business units. This reduction in loss is indicative of an overall movement toward profitability."
Mr. Huff continued, "While we were successful in the first quarter in considerably reducing consulting and professional fees, as well as investment banking and financing fees, we did incur a small increase in the cost of research and development costs for our Sanswire project, mainly for development of the Stratellite and costs related to the successful floating of Sanswire II Technology Demonstrator Airship along with the initial testing phases. We've continued to make significant progress in the execution of our strategic business plan. Most importantly, our five business divisions have shown that they are working toward the aggressive goals that were set by our Board of Directors and myself on April 10.
During March, April and continuing into May, our subsidiary Centerline Communications Corp, LLC (CLC) has experienced gross margins of between 6% and 9%. As CLC grows its direct routes through its switch facility in Los Angles and moves away from less profitable off-net revenues, we expect CLC's profitability to increase to a bottom line profit of $350,000 per month by the end of June. Our GlobeTel Wireless pilot installations continue worldwide, with significant progress being made in Germany and China. We successfully concluded a pilot test in Mexico, which we expect to precipitate a build out of the wireless systems throughout Mexico. Our goal is to have one metropolitan wireless network installed and operating by September 30. Sanswire Networks, our High Altitude Airship program, is set to deliver Sanswire II, a technology demonstrator, which will test the subsystems of the airship program at low and high altitudes. The tethered testing is scheduled to start at the end of May and continue for 60 to 90 days ending with an untethered flight or free flight test at a significant record-breaking attitude. The achievements of Sanswire Networks have generated tremendous interest from both the private and government sectors. This heightened interest will be shared with you in the coming weeks. Our GlobeTel VoIP division is launching their product in Latin America this month and is expected to be at a profitable run rate by June 30. Once launched, our VoIP product is expected to spread throughout Latin America and the corresponding ethnic markets in the US. Magic Money, Stored Value Card division will be launching its product in India on July 1 and is expected, based upon the initial projected volume and activity, to be profitable by the end of the third quarter. We are continuing to implement our existing projects, as well as adding new ones, into the pipeline across all five of our businesses. Over the next 60 to 90 days, we will let our performance show how "real" we are. Our employees continue to grow in number, and remain committed to producing value for our clients, shareholders and society. We are continuing our journey to completion."
EXPENSES Payroll and related taxes 857,744 570,591 Consulting and professional fees 389,756 1,283,458 Officers Compensation 481,742 268,534 Bad debts 83,229 94,092 Investment banking and financing fees - 439,715 Investor and public relations 94,151 25,730 Commissions expense - related party Carrier Services, Inc. 694 724,513 Research and development 524,085 443,924 Other operating expenses 355,333 148,558 Telephone and communications 62,574 21,947 Travel and related expenses 356,286 126,180 Rents 130,023 69,958 Insurance and employee benefits 113,692 63,416 Depreciation and amortization 184,848 18,402 ---------------------------------------------------------------------- TOTAL EXPENSES 3,634,157 4,299,018 ----------------------------------------------------------------------
LOSS BEFORE OTHER INCOME (EXPENSE) AND INCOME TAXES (3,552,935) (3,572,338) ------------------------
OTHER INCOME (EXPENSE) Interest income 42,577 6,195 Interest expense - (33,910) ---------------------------------------------------------------------- NET OTHER INCOME (EXPENSE) 42,577 (27,715) ----------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (3,510,358) (3,600,053)
INCOME TAXES Provision for income taxes - - Tax benefit from utilization of net operating loss carryforward - - ---------------------------------------------------------------------- TOTAL INCOME TAXES - - ----------------------------------------------------------------------
NET LOSS ($3,510,358)($3,600,053) ----------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC 101,353,367 66,121,945 DILUTED 101,353,367 66,121,945
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up 5% pre market.can we go up........
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FORT LAUDERDALE, Fla., May 15, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (GTE, Trade), today announced the launch of VozBrasil(TM) (http://www.vozbrasil.com), a service which will allow Brazilians to call their friends, relatives and business associates in the US through a local number, at local rates, without the need for broadband internet access or any special equipment. Also, separately, over the next two weeks, GlobeTel will be launching a service that allows Brazilians to obtain a US phone number that, when called, will forward those calls to their local phone number in Brazil -- all at low VoIP rates. This is the first of many services that will allow people across the globe to attach US phone numbers -- and thereby forward local US calls -- to their local phone numbers in their own countries.
VozBrasil(TM) is a customized, VoIP-based communications network developed by GlobeTel's VoIP Division for the US-based Brazilian community. The Company believes this is the first commercially available VoIP system that eliminates the need for Customer Premise Equipment ("CPE"), resulting in increased savings and flexibility for both the telecom provider and for the end-user customer.
VozBrasil(TM) customers in the US who would like their friends in Brazil to be able to call them - without incurring the enormous charges of calling from Brazil to the US -- can now get a local Brazilian number issued to them by GlobeTel in any of the most populous areas of Brazil. This local Brazilian number can be linked to any US telephone number the US customer chooses -- that is: his home phone, his business phone or his cell phone -- and when his local Brazilian number is called by his Brazilian friends, that "linked phone" will ring instantly in the US. And, when the call to the "linked" U.S. number is completed, the Brazilian caller is charged only for a local Brazilian call. For even greater savings, the US customer has the option of having both a Brazilian and a US number attached to his VoIP service, although this dual-service requires that the customer have a broadband connection and a small, home-installed VoIP device. This further refinement provides the customer with the extremely low calling rates available throughout the world using voice over IP calling.
For our commercial partners, VozBrasil(TM) is the first commercial VoIP implementation based on GlobeTel's proprietary voice platform known as StrateVoIP(TM) -- a carrier-class platform designed to provide country-specific calling plans and customized packages to its commercial partners. The StrateVoIP(TM) platform enables our ISP and telecom partners around the world to offer their local customers the benefits of voice over IP calling without the need for them to expend huge amounts of capital on the development of a VoIP platform or on an investment in customer premise equipment ("CPE"). StrateVoIP provides a billing and management backend software system that allows any of our partners to be highly competitive with incumbent telcos by offering easy-to-configure calling plans, prepaid phone cards, and least cost routing.
Within minutes of signing up, a VozBrasil(TM) retail customer can have his own US or Brazilian number attached or "linked" to his existing phone number. This real-time feature is one of the many components of the StrateVoIP system that makes it so appealing to ISP's and to telecom companies seeking to provide voice over IP services to their own customers.
Dan Erdberg, President of GlobeTel VoIP, stated, "The US-based Brazilian community is large, growing and vibrant, and it maintains very close ties to its business and personal networks within Brazil. We have designed the platform with real-time features including a user-friendly method of assigning local Brazilian phone numbers to any US-based Brazilians who desire such a local, home-country number. Our US clients can easily select a phone number throughout Brazil and have that local number ring directly to a VoIP phone or cellular phone located in any other location, anywhere in the world, through our system. Instantly, our customers in Brazil will now have the ability to call their families in the US as easily and inexpensively as if they were calling them next door. Also, using the VozBrasil local access number, our U.S. customers are able to call Brazil directly from their U.S. location and inform their friends and families of their new local Brazilian numbers, allowing them to communicate at local tariffs. And this can all be done within minutes of signing up for our service."
Timothy Huff, Chief Executive Officer of GlobeTel Communications, stated, "Arguably, this technology makes international long distance calling a thing of the past. The largest barriers-to-entry facing our competing VoIP service providers are the integration costs and the cost of providing Customer Premise Equipment to their customers. And, importantly, our competitors' systems are able to interact with only those customers having high speed, broadband Internet access. The StrateVoIP platform completely eliminates all of those costs and concerns. And, as a result, our service is accessible by both those who have access to Broadband connections and those who don't. This represents a remarkable breakthrough: mobile VoIP without the need for any computer interface."
By making contact through http://www.VozBrasil.com or by calling 1-888-6Brasil (1-888-627-2745), both business clients and individual customers anywhere in the US can subscribe to high-quality, low-cost telephone service featuring local Brazilian telephone numbers and unlimited calling plans to and from Brazil. With plans starting at under $15 per month, customers can sign up and register for the service in real time, allowing them -- within a matter of minutes -- to communicate with Brazil and save money.
About GlobeTel VoIP
GlobeTel VoIP is a retail-oriented business unit specializing in flexible, carrier class VoIP platforms built specifically for service providers. Our StrateVoIP(TM) product is a private-label solution designed for ISPs, cable companies, telcos, and all other providers desiring to offer VoIP services to their local markets. The StrateVoIP platform is operated using our proprietary VoIP software package, which allows clients to design and architect completely customized calling packages to fit the needs of their specific local markets. This completely customizable solution provides everything required to turn an existing service provider into a leader in VoIP technology without the usual obstacles involved in building out a carrier-class VoIP platform. With the StrateVoIP platform clients can utilize their own brand, deliver a single bill and provide direct customer support to its customers.
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 Securities Litigation Reform 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.
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His Excellency Ferdinando Salleo, Former Italian Ambassador to the United States, Joins GlobeTel Communications` Board of Directors
May 16, 2006 10:21:01 (ET)
FORT LAUDERDALE, Fla., May 16, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (GTE, Trade) announced that His Excellency Ferdinando Salleo, who served as Italian ambassador to the United States from 1995 until 2003, has joined its Board of Directors.
Ambassador Salleo stated, "GlobeTel is poised to deliver the promise of increased access to better communications and financial solutions for millions of people globally. This is an undertaking in which I strongly believe, and in which I'm confident the Company can execute. I look forward to my first Board meeting in Florida shortly."
J. Randolph Dumas, Chairman, stated, "Ambassador Salleo, a true statesman in every sense of the word, enriches our Board with his inimitable world view and his keen political acumen. Uniquely qualified to sit on the Board of any large multinational, we are privileged that he shares our vision."
Born in Messina (Sicily) in 1936, Ambassador Salleo entered the Italian Foreign Service in 1960, soon after earning his Laurea (M.A. degree) from the Law School of the University of Rome. He first served in Paris, then in New York as Consul, then in Prague. In 1972 he came back to the US as counselor at the Embassy in Washington D.C. He later served in the Political Department of his Ministry (as head of NATO Dept.), from where he moved to Bonn as Minister Counselor. In 1979 he was first appointed deputy Director General of the Department for Economic Cooperation and Development Aid of the Ministry of Foreign Affairs in Rome. In 1985, he was appointed Director General of the same Department.
His experience in Economic and Financial Affairs brought him to accept the post of Head of the Italian Permanent Mission to the OECD (the Paris-based Organization for Economic Cooperation and Development) in 1986, as well as to the European Space Agency (ESA). He then returned to Rome as the head of the Economic Affairs Department. From 1989 to 1993 he served as Italy's Ambassador in Moscow, during the Gorbachev era and the downfall of the Soviet Union. After having served as Director general of Political Affairs, the top post of Secretary General of the Ministry of Foreign Affairs was his last assignment in Rome, before being appointed to Washington D.C. in November 1995.
Ambassador Salleo has been a visiting professor at the University of Florence and a professor at LUISS University, Rome. Over the past several years, he has had several opportunities to meet groups of scholars and students as keynote speakers at universities and civic engagements. He is the author of a diplomatic history study on the genesis of the State of Albania (1913-1914), which was published by Sellerio (Palermo) in 2000 and translated into Albanian. Since resigning from the Italian Foreign Service in 2003, the Ambassador and Mrs. Anne Marie Salleo have resided in Rome where he serves on several Boards and acts as Vice Chairman of Medio Credito Centrale (Capitalia Banking Group), a prominent merchant bank in Italy.
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65 Sea Temp, Blue Water, yer in um! Outside ya otta atleast troll up or cast on a Hook-up Strike.. I like a 25lb solid scratch on the coldies.
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Im ready to roll up on a patty and throw a big fat dean at it and yank on a bluefin.
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