[November 18, 2009] Xfone Reports 3Q Results Tweet Nov 19, 2009 (Close-Up Media via COMTEX) -- Xfone announced results for the three and nine months ended September 30. Guy Nissenson, President and CEO, said, "Given the challenging economic environment of the past year, we're pleased to have maintained essentially stable revenues for the past three quarters, with sequentially improving EBITDA and operational cash flow for the nine month period of $5.1 million. Furthermore, in the third quarter, we reported over $1.1 million in operating profitability before the non-cash financing expense of $2.5 million largely related to currency fluctuation." In a release dated November 17, the company stated: Financial highlights for the three months ended September 30: -Total revenues were $21.3 million, a decrease of 17.8 percent compared to $25.9 million for the three months ended September 30, 2008. -EBITDA (earnings before interest, taxes, depreciation and amortization) was $2.3 million compared to $3.2 million for the three months ended September 30, 2008. -Operating income was $1.1 million, compared to $1.8 million for the three months ended September 30, 2008. -Net financing expense increased to $2.5 million, compared to $1.0 million for the three months ended September 30, 2008, primarily attributed to the effect of fluctuations in the exchange rate of the New Israeli Shekel (NIS) on the company's Bonds which are said in NIS and linked to the Israeli Consumer Price Index (CPI). -The company reported a net loss of $1.7 million, or $0.092 per share, assuming 18,376,075 fully diluted shares outstanding at September 30, compared to net income of $0.6 million, or $0.035 per share, assuming 18,390,518 fully diluted shares outstanding at September 30, 2008. Financial highlights for the nine months ended September 30: -Total revenues decreased 5 percent to $64.2 million compared to $67.6 million for the nine months ended September 30, 2008. -EBITDA (earnings before interest, taxes, depreciation and amortization and non-recurring loss) was $6.3 million compared to $8.0 million for the nine months ended September 30, 2008. -Operating income was $2.7 million, compared to $4.8 million for the nine months ended September 30, 2008. -Net financing expenses decreased to $3.7 million, compared to a net financing expense of $5.0 million for the nine months ended September 30, 2008, primarily attributed to the effect of fluctuations in the exchange rate of the New Israeli Shekel (NIS) on the company's Bonds which are said in NIS and linked to the Israeli Consumer Price Index (CPI). -The company reported a net loss of $1.2 million, or $0.067 per share, assuming 18,376,075 fully diluted shares outstanding at September 30, compared to a net loss of $0.2 million, or $0.014 per share, assuming 17,371,811 fully diluted shares outstanding at September 30, 2008. Nissenson said, "Our U.S. division contributed approximately $15.4 million or 72.4 percent of total revenues, a decrease of 15 percent from the third quarter of 2008, but flat when compared to its contribution in the second quarter of 2009. The decrease compared to last year's revenues was due to the attrition of residential customers from our legacy non-FTTP business and sales to other carriers. Revenues from our fiber-to-the premise (FTTP) network increased during the quarter, providing additional stability and profitability to our business and progress continues on the build out of our FTTP network in Levelland, Texas. We are particularly encouraged by our subscription rate in Levelland, where in the four weeks since we connected the network, we have signed on approximately 20 percent of the homes passed. With regard to our pursuit of additional RUS broadband funding, the NTIA and RUS have extended the review process for the first round of funding until mid-December. We remain optimistic that our past experience working with the federal government and the acceptance rate of our FTTP network positions us well to access a portion of the federal funding currently being made available for the construction of advanced broadband networks in select rural areas of the United States. "Our FTTP network is the primary growth driver of our business and we remain focused on leveraging our state-of-the-art FTTP technology for continued growth in Texas and other underserved markets in the Southeast. We are encouraged by our ability to maintain revenues and margin performance despite the difficult market conditions that have prevailed throughout 2009 and we believe that Xfone is well positioned for long term growth." A U.S.-domiciled corporation, Xfone is a holding and managing company with operations in the United States, the United Kingdom and Israel, that offers a wide range of communications services which include: local, long distance and international telephony services; video; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]