Related Quotes Sym. Price Chg. GTE Trade News 0.7 0 GlobeTel Communications Reports Second Quarter Fiscal 2006 Results; Updates April 10, 2006 Guidance
August 14, 2006 17:43:15 (ET)
FORT LAUDERDALE, Fla., Aug 14, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (GTE, Trade) reported results today for its fiscal second quarter, which ended June 30, 2006.
Revenues for the second quarter of fiscal 2006 were $21,628,623, an increase of 10% as compared with $19,700,531 for the second quarter of fiscal 2005, and a 2% decrease as compared with $22,294,725 for the first quarter of fiscal 2006. The year-over-year revenue increase was driven predominantly by a proportional rise in Centerline wholesale traffic revenues (telecommunications minutes). Of the quarter's total revenues, $57,920 was derived from sales of our VoIP Phone products and services, wireless products and services and from our Stored Value Card program products, all of which are fresh out of development.
Total gross margin was $404,912, or 1.9% of total revenues for the second quarter fiscal 2006, compared to ($81,985) for the second quarter 2005, and $81,222 for the first quarter of fiscal 2006. This represents a gross margin increase of $486,897 for the year over year comparison, and $323,690 for the sequential comparison. Of this, $373,536 of the year-over-year increase is attributable to higher margins on resale of wholesale minutes.
Net loss for the second quarter of fiscal 2006 on a GAAP basis was $3,969,334 or a net loss of ($0.04) per share, as compared with a net loss of $5,957,329, or a net loss of ($0.08) per share, for the second quarter of fiscal 2005, and a net loss of $3,510,358, or a net loss of ($0.03) per share for the first quarter of fiscal 2006.
Operating expenses for the quarter were $4,381,044, down 26% compared to operating expenses of $5,890,762 for second quarter of fiscal 2005. The decrease is primarily due to a decrease in consulting and professional fees to $420,791 from $3,062,862. Other operating expenses did increase, including research and development, to $528,371 from $374,535; officers' compensation, to $634,700 from $204,922; and travel and related expenses to $440,584 from $155,086.
"With respect to our stated goals in our April 10 news release, we did not, as previously announced, meet our June 30 target for the initiation of the tethered testing of our Sanswire II technology demonstrator, nor for un-tethered free-flight testing at a significant altitude at Edwards Air Force Base. Faulty components from manufacturers that failed stress tests were responsible for the delay. We've been granted a Statement of Capability by the US Air Force for flight-testing, and do expect to begin untethered testing upon the achievement of a 100% defect-free airship, expected during the third quarter," reported Timothy Huff, Chief Executive Officer.
"Our VoIP division, GlobeTel VoIP, which launched VozBrasil during the second quarter, reached its EBITDA-positive objective by the end of June."
He continued, "We had originally expected our Centerline subsidiary to reach $350,000 per month in net operating profit by the end of June. While Centerline was profitable for the quarter and continues to increase its profits, it did not meet the expected net operating profit. During the quarter, Centerline 'maxed out' the capacity of its third party billing software sooner than anticipated. A new system that would not only accommodate our anticipated growth, but also integrate with GTE's corporate accounting system, was implemented during the quarter. The new software required a 60-day testing and implementation period that is now complete. Both the old and new systems had to run concurrently during this period to identify any possible defects and corrections needed in the new system. During this time, we were not able to bring on new Centerline clients, hampering our ability to increase profits. We can now, however, accommodate Centerline's increased billing needs moving forward, in real time, and have realized gains in billed minutes since the changeover to the new system.
"Also, during the second quarter, we declared LLC Internafta to be in default of our agreement to build wireless networks in Russia. A number of class action lawsuits were filed in the wake of our action, based on contentions made by a contributor to a web site. We have since voiced our opinions regarding this contributor and the groundless lawsuits based on the contentions in his articles, believing they are without merit, and do not plan to comment further at this time."
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, stand-alone entities. Together they're the components of the Company's SuperHub(TM) worldwide VoIP network, currently in development and to consist of the 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. For more information, please visit: http://www.globetel.net
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.
-- Financial Statements Follow --
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) For the three months Ended For the six months Ended June 30, June 30, 2006 2005 2006 2005 ------------- ------------ ------------ ------------ REVENUES EARNED $21,628,623 $19,700,531 $43,923,348 $37,711,175 COST OF REVENUES EARNED 21,223,711 19,782,516 43,437,214 37,066,480 ------------------ ------------------------- ------------------------- GROSS MARGIN 404,912 (81,985) 486,134 644,695 ------------------ ------------------------- ------------------------- EXPENSES Payroll and related taxes 1,023,183 903,365 1,880,927 1,473,956 Consulting and professional fees 420,791 3,062,862 810,548 4,346,320 Officers Compensation 634,700 204,922 1,116,442 466,034 Bad debts 83,140 289,469 166,369 383,560 Investment banking and financing fees - 9,835 - 449,550 Investor and public relations 99,561 167,867 193,712 193,597 Commissions expense - related party Carrier Services, Inc. - - 694 724,513 Research and development 528,371 374,535 1,052,457 818,460 Other operating expenses 536,915 284,168 892,248 440,148 Telephone and communications 92,106 41,834 154,680 63,781 Travel and related expenses 440,584 155,086 796,870 281,266 Rents 199,103 73,292 329,126 143,251 Insurance and employee benefits 152,596 291,689 266,288 355,105 Depreciation and amortization 169,994 31,838 354,843 50,240 ------------------ ------------------------- ------------------------- TOTAL EXPENSES 4,381,044 5,890,762 8,015,204 10,189,781 ------------------ ------------------------- ------------------------- LOSS BEFORE OTHER INCOME (EXPENSE) AND INCOME TAXES (3,976,132) (5,972,747) (7,529,070) (9,545,086) ------------------ ------------------------- ------------------------- OTHER INCOME (EXPENSE) Interest income 7,564 15,618 50,141 21,813 Interest expense (766) (200) (766) (34,110) ------------------ ------------------------- ------------------------- NET OTHER INCOME (EXPENSE) 6,798 15,418 49,375 (12,297) ------------------ ------------------------- ------------------------- LOSS BEFORE INCOME TAXES (3,969,334) (5,957,329) (7,479,695) (9,557,383) INCOME TAXES Provision for income taxes - - - - Tax benefit from utilization of net operating loss carryforward - - - - ------------------ ------------------------- ------------------------- TOTAL INCOME TAXES - - - - ------------------ ------------------------- ------------------------- NET LOSS $(3,969,334) $(5,957,329) $(7,479,695) $(9,557,383) ------------------ ------------------------- ------------------------- WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC 104,467,980 75,003,707 102,919,203 70,570,901 DILUTED 104,467,980 75,003,707 102,919,203 70,570,901 ------------------ ------------------------- ------------------------- NET LOSS PER SHARE BASIC ($0.04) ($0.08) ($0.07) ($0.14) DILUTED ($0.04) ($0.08) ($0.07) ($0.14) ------------------ ------------------------- -------------------------
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, December 31, 2006 2005 ---------------------------------------------------------------------- (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash and cash equivalents $1,869,411 $1,228,180 Restricted cash 142,000 1,122,000 Accounts receivable, less allowance for doubtful accounts of $575,409 and $409,100 1,575,207 371,618 Loans to employees - 46,068 Prepaid expenses 959,682 184,434 Prepaid expenses - related party, ISG Jet, LLC 99,480 185,960 Inventory 367,745 67,525 Deposits on equipment purchase 88,993 124,993 Deferred tax asset, less valuation allowance of $10,937,137 and $9,828,700 - - ---------------------------------------------------------------------- TOTAL CURRENT ASSETS 5,102,518 3,330,778 ---------------------------------------------------------------------- PROPERTY AND EQUIPMENT, net of accumulated depreciation of $949,527 and $596,958 7,283,525 7,028,422 ---------------------------------------------------------------------- OTHER ASSETS Intangible assets 10,032,550 9,907,550 Deposits 46,172 52,322 ---------------------------------------------------------------------- TOTAL OTHER ASSETS 10,078,722 9,959,872 ---------------------------------------------------------------------- TOTAL ASSETS 22,464,765 20,319,072 ---------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY COMMITMENTS AND CONTINGENCIES (NOTE 6) LIABILITIES CURRENT LIABILITIES Accounts payable 1,179,432 907,208 Due to Lexington, Inc. payable in Company stock 100,000 - Due to related party payable in Company stock - Carrier Services, Inc. 204,807 901,606 Due to former employee payable in Company stock 86,790 237,600 Due to related party payable in Company stock - Hotzone Wireless, Inc. 2,211,666 2,451,834 Accrued expenses and other liabilities 455,905 643,018 Deposits from customers 277,024 - Related party payables 57,500 57,500 ---------------------------------------------------------------------- TOTAL CURRENT LIABILITIES 4,573,124 5,198,766 ---------------------------------------------------------------------- LONG-TERM LIABILITIES Due to related party payable in Company Stock - Hotzone Wireless, Inc. 2,386,667 4,708,167 ---------------------------------------------------------------------- TOTAL LONG-TERM LIABILITIES 2,386,667 4,708,167 ---------------------------------------------------------------------- ---------------------------------------------------------------------- TOTAL LIABILITIES 6,959,791 9,906,933 ---------------------------------------------------------------------- STOCKHOLDERS' EQUITY Series A Preferred stock, $.001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding: - - Series B Preferred stock, $.001 par value, 35,000 shares authorized; 0 shares issued and outstanding: - - Series C Preferred stock, $.001 par value, 5,000 shares authorized; 0 shares issued and outstanding: - - Series D Preferred stock, $.001 par value, 5,000 shares authorized; 1,000 shares issued and outstanding: 1 1 Additional paid-in capital - Series D Preferred stock 999,999 999,999 Common stock, $.00001 par value, 250,000,000 and 150,000,000 shares authorized; 106,749,234 and 98,192,101 shares issued and outstanding 1,068 982 Additional paid-in capital 94,240,167 81,570,082 Stock subscriptions receivable: Series D Preferred Stock (500,000) (500,000) Common Stock (142,135) (44,494) Accumulated deficit (79,094,126) (71,614,431) ---------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 15,504,974 10,412,139 ---------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $22,464,765 $20,319,072 ----------------------------------------------------------------------
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended June 30, 2006 2005 ---------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $(7,479,695) $(9,557,383) Adjustments to reconcile net loss to net cash used by operating activities: Depreciation and amortization 354,843 86,264 Bad debt expense 166,369 (383,560) Write-off of obsolete Inventory 27,940 - Stock option compensation 64,109 - Common stock options exchanged for services 225,170 - Common stock exchanged for services 23,750 3,473,899 (Increase) decrease in assets: Accounts receivable (1,369,958) 1,048,212 Restricted cash 980,000 - Loans to employees 46,068 5,385 Prepaid expenses (775,248) (63,163) Prepaid expenses - related party, ISG Jets, LLC 86,480 - Inventory (328,160) 3,000 Deposits 42,150 (1,324) Increase (decrease) in liabilities: Accounts payable 359,707 327,475 Due to related party - Carrier Services, Inc. (106,231) 454,922 Due to related party payable in Company stock - Hotzone Wireless, Inc. (175,000) - Accrued expenses and other liabilities (187,112) 19,916 Deposits from customers 277,024 (32,335) ---------------------------------------------------------------------- NET CASH USED BY OPERATING ACTIVITIES (7,767,794) (4,618,692) ---------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment (609,946) (5,923,437) Advances to related party - Hotzone Wireless, Inc. - (21,658) Acquisition of Intangible assets (125,000) - Deposit on equipment - (16,000) ---------------------------------------------------------------------- NET CASH USED BY INVESTING ACTIVITIES (734,946) (5,961,095) ---------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Sale of preferred stock - Series B - 5,085,200 Sale of preferred stock - Series D - 250,000 Sale of common stock and stock warrants 2,652,353 5,102,152 Sale of common stock - exercises of options 52,807 - Proceeds from loan payable to unconsolidated foreign subsidiary - CGI - 1,514,015 Proceeds from conversion of stock warrants 6,426,295 - Proceeds from convertible notes payable - 1,800,000 Payments on loan payable to unconsolidated foreign subsidiary - CGI - (60,000) Payments for letters of credit - (172,000) Payments on capital lease financing - (4,604) ---------------------------------------------------------------------- NET CASH PROVIDED BY FINANCING ACTIVITIES 9,131,455 13,514,763 ---------------------------------------------------------------------- Effects of exchange rate changes on cash 12,516 - NET INCREASE IN CASH AND EQUIVALENTS 641,231 2,934,976 CASH AND EQUIVALENTS - BEGINNING 1,228,180 601,559 ---------------------------------------------------------------------- CASH AND EQUIVALENTS - ENDING $ 1,869,411 $ 3,536,535 ---------------------------------------------------------------------- SOURCE: GlobeTel Communications Corp.
GlobeTel Communications Corp., Fort Lauderdale Robert Bleckman, 954-775-1427 Copyright Business Wire 2006
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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quote:Originally posted by IMAKEMONEY: Good luck, R1 Man, SPRINT DEAL???? AND GATE SAID WIFI EVERY WHERE HMM.
Happy I sold at $0.73 to get my money back. I knew the price would dip back down....but I think I will wait until later this week to get back in. I think the $0.63 x $0.65 will drop lower and maybe I can get some around $0.60-.61 range.
Posts: 2367 | From: Detroit | Registered: Mar 2005
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THE FOOLS, Putting out somemore bad press. GlobeTel: Feel the (Cash)Burn By Seth Jayson (TMF Bent) August 16, 2006
Another quarter, another series of failures and excuses from WiMAX pretender GlobeTel (AMEX: GTE), the company that has dazzled investors with tales of WiMAX blimps and giant Russian WiMAX deals -- dreams that have a bad habit of, you know, not coming true.
Many GlobeTel fans out there insist that the firm is being held back by a large corporate conspiracy involving the likes of Lockheed Martin (NYSE: LMT), Nokia (NYSE: NOK), Motorola (NYSE: MOT), Verizon (NYSE: VZ), Comcast (Nasdaq: CMCSA), and News Corp. (NYSE: NWS). (Can't you see! If GlobeTel succeeds with high-altitude airships, broadband telephony, and Internet TV, it'll mean the end for all of them!)
Anyone who steps away from the Kool-Aid ought to see the simple fact that GlobeTel management, especially CEO Tim Huff, consistently fails to deliver on its promises. That holds true whether those promises are big (testing the WiMAX blimp on schedule) or small (getting its Centerline subsidiary "to reach $350,000 per month in net operating profit by the end of June").
This quarter's numbers offer another carnival of the macabre. Though GlobeTel actually managed to eke out a positive gross margin of $404,912 dollars, that sum represents a paltry 1.87% of revenues. And the figure is less than the astonishing $440,584 dollars this small company spent on travel in the quarter.
Four hundred and forty thousand on travel alone? Hey, I don't get it either. I'm guessing managers aren't flying steerage and staying at the Motel 6. But even if they are, officers can take comfort in total compensation that rose more than 200% from the prior-year period, to $634,700 -- just another of the line items that dwarfs the entire gross margin.
The final net loss was actually a bit smaller than the prior year's, but it was still nearly $4 million. Those who think any improvement on that line means good things might possibly want to check out the cash flow statement, where the fog of accounting dissipates under the harsher light of greenback reality. Cash burned by operations was much higher in this half-year than the prior-year period, -$7.8 million vs. -$4.6 million. Lower capex slowed the overall burn rate, but a glance at the balance sheet, where you see only $1.8 million in cash and cash equivalents, ought to tell you what's likely to come next: more shares.
GlobeTel's share count has already ballooned more than 39% between last year and now, something that happens when you burn that much cash and have to resort to share sales and convertible warrants in order to keep your company in the green.
Unfortunately for the cash-hungry free-spenders at GlobeTel, the Amex is seemingly set on putting this puppy to sleep, saying GlobeTel "engaged in a pattern of issuing overly promotional press releases" while "its management has engaged in operations, which, in the opinion of the Exchange, are contrary to the public interest." GlobeTel -- which has, of course, appealed the determination -- may soon get the heave-ho onto the pinkies. Without a liquid market in which potential angel investors could dump, er, I mean resell their GlobeTel shares, it may be tough for GlobeTel to attract financiers. And it probably won't be any easier now, given the lengthening track record of failure illustrated in the latest earnings release.
Is GlobeTel going to survive? That I don't know. One thing I do know for sure: Jane and Joe Investor ought to think twice, ignore gullible market prognosticators, and let someone else, anyone else, finance GlobeTel's pricey, profitless dreams.
For related Foolishness:
A Random Walk Down Penny Lane The GlobeTel Silent Treatment GlobeTel Still on Hold GlobeTel's Australian Odyssey More Hot Air From GlobeTel Get all the inside information you need in our collection of investing newsletters. From wallflowerish small caps to swashbuckling Rule Breakers, we've got something for every investor. Get in on the action today; all of our newsletters offer a 30-day risk-free trial.
Seth Jayson thinks a WiMAX blimp would be way cool, but he knows the difference between dreams and reality. At the time of publication, he had no positions in any company mentioned here. View his stock holdings and Fool profile here. Fool rules are here.
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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GlobeTel Communications Corp. Announces NASA to Terminate Memorandum of Agreement
Business Wire via COMTEX
Aug 18, 2006 9:37:05 AM
FORT LAUDERDALE, Fla., Aug 18, 2006 (BUSINESS WIRE) --
GlobeTel Communications Corp. (AMEX:GTE) today announced that it has received a 30 day notice from the National Aeronautics and Space Administration that it has determined to terminate the Memorandum of Agreement between the parties signed on June 13, 2005.
According to the letter, NASA decided to terminate the agreement as neither party has actively participated in any tasks under the agreement. The letter also states that the termination does not preclude the parties from working together in the future.
The termination of the agreement does not affect NASA's provision of meteorological services to the Air Force Flight Test Center in support of the flight test efforts involving Sanswire 2, which are to be conducted at Edwards Air Force Base pursuant to the Statement of Capabilities entered into between Sanswire and the Air Force in July 2006.
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, 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. For more information, please visit: http://www.globetel.net .
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. For additional risk factors and information you should read our SEC filings at www.sec.gov
SOURCE: GlobeTel Communications Corp.
GlobeTel Communications Corp., Fort Lauderdale Robert Bleckman, 954-775-1427
Copyright Business Wire 2006
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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No action on GTE so far this morning. Half hour into the trading day and not one share has sold. Is there another halt in trading in place here????
Posts: 230 | From: Virginia | Registered: Mar 2005
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T.2 Halt - News Released The news has begun the dissemination process through a Regulation FD compliant method(s).
Posts: 1091 | From: Brugge, Belgium / Dallas TX USA | Registered: May 2006
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On June 13, 2005, we announced that we signed a formal agreement with the National Aeronautics and Space Administration (NASA). The terms of the agreement with NASA's Dryden Flight Research Center at Edwards Air Force Basis in California establish that NASA Dryden will provide assistance in our development and flight testing of the Stratellite, our high altitude Remotely Operated Airship (ROA). Under the agreement, NASA Dryden will provide specialized technical support to our subsidiary, Sanswire Networks LLC, for its development and flight testing of the Stratellite via a series of task agreements. It is expected that the first task agreement will call for NASA Dryden to develop piloted and unpiloted simulations of the Stratellite airship. The simulation would incorporate the airship's aerodynamics, propulsion and control features based upon data provided to NASA Dryden by Sanswire. We plan to provide NASA and other agencies access to the Stratellite for the installation, integration, and development of NASA-sponsored sensors and other projects. The agreement between NASA Dryden is authorized under the Space Act of 1958 under which NASA was established.
We have successfully completed our planned tests at our prior facility in San Bernardino, CA and on June 1, 2005, our wholly-owned subsidiary, Sanswire Networks LLC announced that it has finished its planned move from San Bernardino to Palmdale, California, which borders the air space at Edwards Air Force Base, in preparation for our high altitude tests that are planned to be carried out later this year at Edwards Air Force Base. Continued tests will be focused on the control systems, power systems and high altitude performance criteria. The new facilities are approximately 66,600 square feet
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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AP Could a Blimp Improve Communications? Sunday August 20, 6:33 pm ET By Alicia Chang, AP Science Writer Could a High-Flying Blimp Improve World's Wireless Communications? Company Gives Idea a Try
PALMDALE, Calif. (AP) -- Bob Jones has a lofty idea for improving communications around the world: Strategically float robotic airships above the Earth as an alternative to unsightly telecom towers on the ground and expensive satellites in space. Jones, a former NASA manager, envisions a fleet of unmanned "Stratellites" hovering in the atmosphere and blanketing large swaths of territory with wireless access for high-speed data and voice communications.
The idea of using airships as communications platforms isn't new -- it was widely floated during the dot-com boom. It didn't really fly then, and Jones is the first to admit the latest venture is a gamble.
Tethered flights of a prototype -- which cost about $3 million to build and is about one-fifth scale model of the planned commercial airships -- are scheduled later this month in this Mojave Desert city, about an hour's drive north of Los Angeles.
Jones says it will be a critical test of the technology.
"I don't want to see it fall on someone's back yard or have it float away to Las Vegas," said Jones, president of Stratellite developer Sanswire Networks LLC.
If everything goes as planned, remote-controlled flights would launch later this year from nearby Edwards Air Force Base. During the tests, the airship is expected to float to 45,000 feet for several hours. He envisions the commercial airships will rise to 65,000 feet -- or about 13 miles -- and stay aloft for 18 months at a time.
For now, Jones' focus is on testing how well the parts of the airship work. He hopes to build a commercial vehicle in the next several years.
Unlike the cylindrical shape of a traditional blimp, a Stratellite has a broad, tapered nose like a shark. The solar-powered dirigible will carry a payload of radio and digital devices.
Interest in airships is on the rise. The U.S. military is exploring them for airborne reconnaissance and homeland security. Corporations also are increasingly eyeing them for civilian communication use.
At the height of the dot-com boom, several companies toyed with providing Internet and phone service from floating communications platforms. Many of those ideas foundered when the Internet bubble popped -- and broadband delivered over phone and cable lines proliferated.
Still, airships might prove most useful in niche markets -- rural dead zones, for example, or during natural disasters when terrestrial towers fail. After Hurricane Katrina, satellite-connected wireless phone providers saw a dramatic spike in usage in storm-ravaged Gulf Coast areas.
That limited market may not be enough for dirigible makers to survive, said Robert Rosenberg, president of Insight Research Corp., a New Jersey-based telecommunications market research company.
"It's an example of a technology that's looking for a market," he said.
Jones believes his solar-powered, helium-filled Stratellites -- so named because they would hang in the stratosphere -- could replace unsightly cell towers and cost less than satellites. Because of the airship's altitude according to Jones, its radio equipment can cover an area the size of Texas.
Cell towers are hampered by line-of-sight limitations and limited range. Geostationary satellites suffer from the quarter-second it takes a signal to travel out 22,300 miles and back -- insignificant in one-way TV transmissions, but terrible for two-way Internet computer communications.
Jones said his floating platforms will carry radio equipment that uses both licensed and unlicensed airwaves. The company will license spectrum if required and also work with companies that already have licenses, he said.
While Jones dreams of covering whole states with wireless services, Arizona-based Space Data thinks it can fill a cellular void by floating weather balloons in the stratosphere that would bring coverage to remote regions.
Space Data plans to test fly a balloon next month over a remote part of North Dakota to demonstrate the technology. The company, which is negotiating with several unidentified cell phone providers, could launch its first commercial balloon as early as next year over west Texas.
"Someday, you can just get a plan from your cell phone provider and you won't even know if you're on the balloon or if you're on the tower," said Chief Executive Jerry Knoblach. "You'll just talk but you'll have coverage even from the bottom of the Grand Canyon."
But questions abound about the durability of dirigibles. No vehicle has ever stayed in the stratosphere -- located above the jet stream where clouds rarely form and where temperatures hover around freezing -- for months at a time. It's unclear how the environment would affect a dirigible.
At Sanswire's guarded hangar, the 125-foot-long prototype named Sanswire 2 is held down by orange sandbags and cordoned off with yellow tape. About 10 employees scurried around to put the finishing touches on the airship before its maiden flight.
Jones' prototype weighs just 750 pounds and contains five separate helium chambers in case one leaks. It is made of tough carbon composite material that gives it a rigid structure like the zeppelins of the early 20th century.
Jones recently returned from a trip to Colombia, saying he spoke with government officials about the potential of deploying Stratellites in the Andes nation.
Other countries also expressed interest, but no contracts have been signed.
Some telecommunication analysts contend builders of high-altitude airships and blimps face a double whammy: The wireless market is already saturated and the technology is relatively new and unproven.
"More power to the entrepreneurs who are doing this," said Steven Titch, a telecommunications expert at the Heartland Institute in Chicago. "But it's a question of convincing venture capitalists that you can make it work."
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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GlobeTel Receives Notice from AMEX of Noncompliance with Additional Continued Listing Requirements; Appeal to Be Heard September 28, 2006 FORT LAUDERDALE, FL--(BUSINESS WIRE)--Aug. 23, 2006--GlobeTel Communications Corp. (AMEX:GTE) today announced that the American Stock Exchange (Amex) provided the Company with a letter dated August 17, 2006 that supplements and updates the Exchange's original July 18, 2006 notice of its intention to de-list the Company and notifies the Company of the Staff's determination that the Company is noncompliant with a number of additional continued listing requirements.
The August 17 letter identified the following concerns as underlying its determination: (i) failure to make timely, accurate and complete disclosure of material corporate developments, as well as engaging in a pattern of issuing materially misleading and overly promotional public disclosures; (ii) failure to comply with Securities and Exchange Commission reporting obligations by filing incomplete, misleading and/or inaccurate information in its public filings; (iii) failure to provide information to the Exchange; (iv) providing materially false and misleading information and statements to the Amex staff hindering its investigation of the Company's compliance with Amex listing requirements; (v) acting to interfere with the operation of a fair and orderly market by issuing public statements not warranted by the Company's affairs that were intended to affect the price of its common stock; (vi) association with an individual with a history of regulatory misconduct that rises to the level of a public interest concern; and (vii) serious internal control weaknesses that rise to a level of a public interest concern.
In contrast to the earlier notice, the August 17 letter also identifies the specific matters underlying the Amex's concerns. The Company believes this additional specificity should help address concerns previously voiced by the Company to the Amex to the effect that the lack of specificity contained in the letter dated July 18 interfered with the Company's ability to undertake a thorough assessment of the Amex's concerns with a view toward mounting an effective defense.
The Company also received a letter dated August 18, 2006 informing it that a Listing Qualifications Panel of the Amex Committee on Securities will hear GTE's appeal of the Amex staff's determination to de-list the Company on September 28, 2006. There can be no assurance that the Listings Qualification Panel will grant the Company's request for continued listing. If it does not, the Company's common shares may return to the OTC Bulletin Board.
The specific sections of the Amex Company Guide cited by the Amex are: 120,127, 132(e), 134, 401, 402, 403, 404, 921, 1001, 1002(d), 1002(e), 1003(d), 1003(f)(iii) and 1101.
Posts: 230 | From: Virginia | Registered: Mar 2005
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Saw this drop coming a mile away. Since they will probably be going back to the OTCBB what will happen to the institutional investors? Do they typically dump or do they continue to hold onto their shares when a stock goes to a lower exchange? I have bought and sold GTE 5 times now since April '05. Been with this since page one and my first post was on page 2. I would like get in for another play and am watching for a good bottom play since it is currently at a 52 week low. I am not sure how the institutions will play into the share price if they bail. Still watching and waiting...
Posts: 507 | From: Rochester, NY | Registered: May 2005
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If GTE gets delisted what happens with the past split?Do you keep with the same amount of shares you have now and just get the lower price?
Posts: 9 | From: Suffolk long island NY | Registered: Mar 2005
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WELL THE FOOLs ARE POSTING AGIAN!Amex Rings GlobeTel Again Motley Fool’s By Seth Jayson (TMF Bent) August 28, 2006
We already knew that GlobeTel (AMEX: GTE) was under the gun. Its home exchange, after all, sent it a notice of intention to delist the stock, saying GlobeTel had "engaged in a pattern of issuing overly promotional press releases" at the same time that "its management has engaged in operations, which, in the opinion of the Exchange, are contrary to the public interest."
Thursday, the firm -- whose loyal fans believe it can outcompete or make obsolete companies as powerful as Lockheed Martin (NYSE: LMT), Cisco (Nasdaq: CSCO), Motorola (NYSE: MOT), Verizon (NYSE: VZ), Comcast (Nasdaq: CMCSA), and AT&T (NYSE: T) -- released an 8-K detailing another note from the American Stock Exchange.
To put it mildly, the Amex does not seem pleased. GlobeTel reveals that the exchange now accuses the company of (emphasis mine):
(1) Failure to make timely, accurate, and compete disclosure of material corporate developments, as well as engaging in a pattern of issuing materially misleading and overly promotional public disclosures;
(2) Failure to comply with Securities and Exchange Commission reporting obligations by filing incomplete, misleading, and/or inaccurate information in its public filings;
(3) Failure to provide information to the exchange;
(4) Providing materially false and misleading information and statements to the Amex staff, hindering its investigation of the company's compliance with Amex listing requirements;
(5) Acting to interfere with the operation of a fair and orderly market by issuing public statements not warranted by the company's affairs that were intended to affect the price of its common stock;
(6) Association with an individual with a history of regulatory misconduct that rises to the level of a public interest concern;
(7) Serious internal control weaknesses that rise to a level of a public interest concern.
Quite a list, no? And I'd say the latter allegations are by far the most interesting. No. 5, well, that sounds like stock manipulation to me. I wonder if the SEC is paying attention to this. Hello? SEC?
Nos. 3 and 4 are even more curious. What is it the Amex wants to know? Why would GlobeTel fail to provide information? And why would GlobeTel provide materially false and misleading information and statements to the Amex?
Maybe, like me, Amex would like to see proof that GlobeTel's claims about various worldwide entities were warranted. For instance, I'm still waiting to see proof that Internafta -- the Russian outfit with the "binding" contract that didn't bind -- ever existed, let alone had assets sufficient to warrant the "contract" and the PR blitz.
(I was suspicious of that deal from day one, especially because CEO Tim Huff couldn't give me a single shred of contact information on those foreign partners when we spoke in the days after the deal. But GlobeTel has long since stopped responding to my calls and emails.)
I doubt those of us who are following the drama will ever see enough evidence to satisfy our curiosity. And as for GlobeTel, I'm not sure it's long for this world. The latest 10-Q showed less than $2 million in cash, versus payroll and taxes of more than $1 million a quarter, in addition to $441,000 for travel and $635,000 in officer compensation. I'd say it's just about out of money.
And on that last bit, management agrees. Here's what it had to say, "The Company anticipates increased cash flows from 2006 sales activities; however, additional cash will still be needed to support operations."
Hmm. And if it can't find anyone to loan or invest?
"... If budgeted sales levels are not achieved, or if significant unanticipated expenditures occur, or if the Company is unable to obtain the necessary funding, the Company may have to modify its business plan, reduce or discontinue some of its operations or seek a buyer for all or part of its assets to continue as a going concern through December 31, 2006."
There's not a whole lot more that needs to be said.
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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Knew it wouldn't take long for the Motley Fool to jump all over the recent delisting notice from the AMEX. This looks bleak to say the least - don't think there is one chance in a million that GTE will stay on the AMEX. Now news about Sanswire II test or anything else. Last one out - please turn off ALL the lights and leave your pennies at the door.
Posts: 230 | From: Virginia | Registered: Mar 2005
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You have lots of faith in GTE fellas. The NASA MOA is going to expire here within a couple weeks, and unless there is a MIRACLE - the stock WILL get delisted on 28 Sept and it looks like GTE management is quickly running out of cash. If all this happens without any real GOOD news from GTE I think this stock will end up in the low 20's by mid-October. I also think it'll be a steady slide down and we won't get many bounces up to take any quick profits.
PS - I REALLY HOPE I'M WRONG
Posts: 230 | From: Virginia | Registered: Mar 2005
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no bashing or pumping..just honest thoughts and opinions..
i like gte for some reason,,,they seemed so up front and sincere... they hired some really respected people and things were moving along smoothly. now?..i just dont know. i wont get in again until they can bring back that faith. hope it doesnt turn into another qbid or ncdp!...
glta
-------------------- jordan Posts: 5812 | From: st paul,mn | Registered: Feb 2004
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Sanswire is at a trade show in Orlando...AUVSI 8/29-8/31....evidently the Sanswire II is showing well...Go to www.sanswire.com/, upcoming events catagory for info.. I clicked on New Job Opportunities and on the left is the Upcoming Events catagory...
Posts: 216 | From: Florida | Registered: Feb 2005
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