Pervasip Corp. Reports First Quarter Earnings Of $3.2 Million
(MacReport Media Via Acquire Media NewsEdge) Pervasip Corp. (OTCQB:PVSP.PK - News).
Summary of Recent Accomplishments:
- First quarter gross margin of 55% compared to 38% in first quarter of prior year
- Net income of $3.2 million
- Earnings of $0.03 per share basic; $0.02 per share diluted
- $4.9 million improvement in working capital deficiency over the past three months
- Soft launch of VoX's Android mobile app for international calling
Pervasip Corp. (the "Company"), a cloud-based voice and video communications solutions, apps and services provider, today reported earnings for its first quarter ended February 29, 2012.
Net income for the quarter ended February 29, 2012 was $3,206,757, or $0.03 per basic share and $0.02 per diluted share, compared to a net loss of ($788,488), or ($0.08) per share, in the first quarter of 2011.
The Company's gross profit increased by $28,343, or 23%, to $150,609 for the three-month period ended February 29, 2012 from $122,266 for the three-month period ended February 28, 2011. The gross profit percentage improved by 17 percentage points to 55%, for the three-month period ended February 29, 2012, from 38% for the three-month period ended February 28, 2011.
Pervasip's CEO, Paul Riss, noted, "We are pleased with the financial progress we have made this quarter, in improving our balance sheet and enhancing our margins. We believe we have put in place the cost structure and financial plan needed for a successful marketing campaign of our Android app. Our improved gross margin, now at 55%, allows us to give free trial minutes to new subscribers, so they can experience the high quality and ease of use of making international calls with our mobile phone application."
The Company's working capital deficiency improved by approximately $4,900,000 at February 29, 2012, as compared to November 30, 2011, primarily due to a debt reduction, which resulted in a gain from troubled debt restructuring of $4,779,634.
For additional disclosure regarding operating results, refer to the Quarterly Report on Form 10-Q for the period ended February 29, 2012, which has been filed with the Securities and Exchange Commission.
Pervasip delivers wholesale and retail video and voice VoIP telephone services for the residential and small business markets. Pervasip differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems. It recently entered the mobile VoIP services and applications arena, which is expected to approach 300 million users by the end of 2013. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. For more information, please visit www.voxcorp.net.
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Pervasip Corp. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
For the Three Months Ended
Feb. 29, 2012 Feb 28, 2011
Revenues $ 275,497 $ 319,671
Costs and expenses:
Costs of services 124,888 197,405
Financing charges 260,804 -
Selling, general and administrative 472,887 436,113
Total costs and expenses 858,579 633,518
Loss from operations (583,082) (313,847)
Other income (expense):
Interest expense (1,079,466) (482,161)
Gain on troubled debt restructuring 4,779,634 -
Mark to market adjustment of 89,671 7,520
Total other income (expense) 3,789,839 (474,641)
Net income (loss) 3,206,757 (788,488)
Other comprehensive income (loss) (719) 520
Comprehensive income (loss) $3,206,038 $(787,968)
Basic earnings (loss) per share $0.03 ($0.08)
Diluted earnings (loss) per share $0.02 ($0.08)
FOR FURTHER INFORMATION:
AT PERVASIP: PAUL H. RISS CHIEF EXECUTIVE OFFICER PH: 212-404-7633 PHRISS@PERVASIP.COM
Source: Pervasip Corp.
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