KonaTel Reports First Quarter 2021 Financial Results
DALLAS, May 25, 2021 /PRNewswire/ -- KonaTel, Inc. (OTCMKTS: KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for three-month period ended March 31, 2021.
First Quarter Financial Summary and Recent Business Highlights
"Demand for telecommunications and data services continues to be robust as work-from-home trends persist, IoT (Internet of Things) wireless data opportunities increase and consumers seek faster, more reliable connectivity from the accelerating deployment of smart devices," stated KonaTel Chairman and CEO Sean McEwen. "We are increasing our internal infrastructure, primarily employed and contracted personnel, to expand our sales channel strategy to meet this growing demand and pursue additional opportunities to further scale the higher margin, Hosted Services segment of our business."
First Quarter Financial Detail (First Quarter of 2021 vs. First Quarter of 2020)
Revenues increased 22% to $2.4 million compared to $2.0 million, reflecting a 32% increase in Hosted Services revenues and a 14% increase in Mobile Services revenues.
Gross profit was $911,000, or 38.1% profit margin, compared to gross profit of $765,000, or 39.1% profit margin.
Total operating expenses were $1.1 million, up 19.5% compared to $995,000. This increase was primarily a result of infrastructure expansion, mostly payroll and operating & maintenance expenses to support growth.
Net loss was $(233,000), or $(0.01) per diluted share (based on 40.7 million weighted average shares) compared to net income of $101,000, or $0.00 per diluted share (based on 44.1 million weighted average shares), inclusive of non-operating, other income of $300,000 related to a legal settlement.
The Company ended the quarter with $569,000 in cash, compared to $715,000 in cash on December 31, 2020. Long term debt was $150,000 as of March 31, 2021 and December 31, 2020.
KonaTel provides a variety of retail and wholesale telecommunications services including mobile voice/text/data service supported by national U.S. mobile networks, mobile numbers, SMS/MMS services, IoT mobile data service, and a range of hosted cloud services. KonaTel's subsidiary, Apeiron Systems (www.apeiron.io), is a global cloud communications service provider employing a dynamic "as a service" (CPaaS/UCaaS/CCaaS/PaaS) platform. Apeiron provides voice, messaging, SD-WAN, and platform services using its national cloud network. All Apeiron's services can be accessed through legacy interfaces and rich communications APIs. KonaTel's other subsidiary, Infiniti Mobile (www.infinitimobile.com), is an FCC authorized wireless Lifeline carrier with an FCC approved wireless Lifeline Compliance Plan, authorized to provide government subsidized cellular service to low-income Americans. KonaTel is headquartered in Plano, 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.
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SOURCE KonaTel, Inc.