KonaTel Reports Third Quarter Financial Results, Uplisting

DALLAS, Jan. 5, 2021 /PRNewswire/ -- KonaTel, Inc. (OTCMKTS: KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for the third quarter and nine month period ended September 30, 2020.

Third Quarter Financial Summary

• Revenues of $2.5 million, up 7.7% compared to the third quarter last year, due to increasing work-from-home trends and organic growth in both CPaaS operations and ETC operations.
• Intra-year 2020 sequential quarterly improvements included Q1 to Q2 revenue increase of 15% and Q2 to Q3 revenue increase of 12%.
• Gross profit increased by 8.8% compared to the third quarter last year reflecting a continued focus on higher-margin revenue, which resulted in a shedding of lower-margin, commoditized business.
• Net Operating Income grew by 65.7% compared to the third quarter last year due to improved management of direct costs.
• Net Income of $19,953 or $0.0005 per share, compared to a net loss of $(175,805), or $(0.0043) per share in the third quarter last year.

"We are very pleased to report both year over year and sequential quarterly improvements in revenue, gross profit, and operating income," stated KonaTel Chairman and CEO Sean McEwen. "We continue to shed lower margin, commoditized business in favor of meaningful, value add revenue that enables us to earn a higher return on our capital. Recent national trends in work-from-home and organic growth in both CPaaS operations and ETC operations were the key drivers of this performance. Higher margin revenue drives efficiencies and scale in our business. Improved overhead utilization between operating companies pushed operating and maintenance expenses lower by almost 30% year over year."

Year-to-Date Financial Detail (First Nine Months of 2020 vs. First Nine Months of 2019)

Revenues decreased 7.1% to $6.7 million compared to $7.3 million due to the Company's emphasis on higher margin revenue. Gross profit increased to $2.5 million, or 37.3% profit margin, compared to gross profit of $2.4 million, or 33.3% profit margin. Total operating expenses were $2.9 million, down 18%, primarily due to improved management of direct costs. Net income was $262,835, or $0.01 per share (based on 44.1 million weighted average diluted shares), versus a net loss of loss of $(0.03) per share (based on 40.7 million weighted average diluted shares).

Balance Sheet

The Company ended the quarter with $588,213 in cash, compared to $191,474 in cash on December 31, 2019. Long term debt was $329,542 versus $63,545 on December 31, 2019.

Uplisting

The Company is also pleased to announce that its common shares were approved for listing on OTC Markets Group Inc.'s OTCQB® Venture Market ("OTCQB"). OTCQB is a venture market operated by the OTC Markets Group, Inc. To be eligible for quotation on the OTCQB, companies must be current in their reporting and undergo an annual verification and management certification process. Companies must also meet a minimum bid price test and other financial conditions. OTCQB is recognized by the U.S. Securities and Exchange Commission as an established public market and provides current public information to investors that need to analyze, value, and trade securities.

"Uplisting to the OTCQB is an important milestone for our Company," stated Sean McEwen. "We are enthusiastic about the ability of our new listing to increase investor awareness, visibility, and trading liquidity around our public shares. Our uplisting is also a major step towards meeting the requirements for potential admission to another major exchange such as NASDAQ or NYSE sometime in the future."

About KonaTel

KonaTel provides a variety of retail and wholesale telecommunications services including mobile voice/text/data services supported by national U.S. mobile networks, mobile numbers, SMS/MMS services, IOT mobile data service, SD-WAN and other digital communications services. KonaTel's subsidiary, Apeiron Systems (www.apeiron.io), is an FCC licensed Internet Telephony Service Provider (ITSP) that owns and operates its own national digital telecommunications network supported by an "as a service" (CPaaS/UCaaS/CCaaS/PaaS) telecommunications SAS (Software as a Service) platform. Apeiron provides fixed and wireless digital voice, messaging, network, data, and platform services through its API (Application Programming Interface) software infrastructure. KonaTel's other subsidiary, Infiniti Mobile (www.infinitimobile.com), is an FCC licensed Lifeline wireless service provider delivering subsidized mobile service to low-income American households and one of about 12 active mobile Lifeline carriers to hold an FCC approved Compliance Plan. KonaTel is headquartered in Dallas, Texas.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of the disclosures contained in the filings of KonaTel and its "forward-looking statements" in such filings that are contained in the EDGAR Archives of the SEC at www.sec.gov.

View original content:http://www.prnewswire.com/news-releases/konatel-reports-third-quarter-financial-results-uplisting-301200765.html

SOURCE KonaTel, Inc.

[ Back To TMCnet.com's Homepage ]