Flint Telecom Group, Inc., a fast growing next-generation IP communications products and services company, today reported its progress for the first five months of 2009 as well as provided a list of highlights. After acquiring six U.S. subsidiaries of China Voice Holding Corp. (CHVC) on January 29, 2009, the company completed an aggressive company integration which included extensive corporate personnel and network cost-cutting measures.
Flint Telecom CEO Vincent Browne stated, “We are now well positioned to take our integrated infrastructure to the next level for the benefit of our Shareholders. I feel that we have put together the right team, business plan and foundation to support significant growth as well as to realize increased profits during the coming months. We now have eight active and complementary subsidiaries currently generating more than $75 million in annualized revenues and have made great strides in developing new higher margin products to drive into the Company’s significant distribution.”
CFO Steve Keaveney commented, “Our third quarter ended March 31, 2009 financial results reflect our progress. We increased revenue to $11,220,472 as compared to $492,275 for the three months ended March 31, 2008. Revenue for the nine months ended March 31, 2009 increased to $17,432,765 as compared to $892,155 for the same period in the previous fiscal year. During this ‘restructuring’ quarter we also made great progress in cleaning up our Balance Sheet. The majority of the losses reported last quarter were due to non-recurring write-offs and expenses relating to the Semotus transaction, duplicated network operations and professional fees. We expect to soon realize the benefit of our streamlined operations, which will be reflected in our upcoming financials. With this said, we are well on our way to profitability, which will eliminate or greatly reduce our need for additional capital to fund operations.”
Bill Burbank, Flint’s President and COO, added, “With the Company integration complete, we can now focus on generating additional profit margin while reducing our operating costs in each of our subsidiaries. In addition, the team that has been assembled will enable us to conduct comprehensive due diligence during our evaluation process of various possible target acquisition companies, as well as quick and efficient integration of those companies once they are acquired.”
Flint Telecom provided the following to overview the operations of the acquired subsidiaries as well as brief investors on the enhancements or key initiatives underway:
CVC International Inc.: CVC is a wholesale provider of VoIP telecommunications services to CLEC’s, ISPs, IXC’s, cable companies and other communication service providers (”Carriers”) both in the U.S. and Internationally. The Company focuses on selling high volumes of international termination minutes to Carrier and other Service Provider customers. During the integration of Flint’s network operations into CVC, the Company greatly reduced network costs and moved from a fixed cost revenue structure to a fully variable cost model, which has resulted in consistent positive gross margins going forward for the combined entity. With the exception of Cable and Voice Corporation, CVC’s network either supports or will soon support voice traffic for all other Flint subsidiaries.
Digital Phone Solutions, Inc.: DPS is focused on providing ‘private label’ VoIP services to Independent Cable Companies, which is by far the most successful market growth in the U.S. today, with short term growth projected of over 25 million subscribers, and to other niche providers. DPS enables these companies to quickly establish a reliable, fully featured and cost effective alternative to traditional fixed and mobile telephony services to their existing customer base. DPS delivers value-added services that manage the entire voice value chain, including billing, customer care, call routing, service provisioning and marketing support. DPS’ VoIP services reside on Flint’s solid and highly scalable platforms.
Cable & Voice Corporation: Cable & Voice is a leading value-added distributor and manufacturer of advanced broadband products and services. For several years, the Company’s staff has provided technical expertise and advice, fast service and competitive prices on quality broadband, VoIP and wireless product to the cable industry and service provider customers throughout the World. Cable and Voice Corporation’s clients include many of the top 10 cable operators as well as regional and local providers in the U.S. The Company’s relationship with the National Cable Television Cooperative (NCTC) and extensive Cable Company customer base provides a strong sales vehicle for the white label VoIP services from Digital Phone Solutions (DPS). Cable companies are leading the market adoption with demonstrable consumer preference for trusted VoIP brands.
Phone House of California, Dial-Tone Communications and Phone House of Florida: Phone House and Dial-Tone distribute discount international calling cards that enable end-users who purchase cards in the United States to call countries throughout the world at significant savings over regular phone service. The calling cards are currently sold through a network of private distributors addressing an estimated 10,000 retail outlets in the United States. Within approximately thirty days these distribution companies will be selling higher profit margin Wize branded calling cards that utilize CVC International’s network.
StarCom Alliance, Inc.: StarCom is a Master Distributor of prepaid cellular products. StarCom’s products provide customers with reduced calling rates for both domestic and international destinations. The Company’s prepaid products include cellular phones, SIM cards, cellular calling cards, wireless Bluetooth products and refill pins. While there will always be a demand for the traditional prepaid calling cards, currently there is major growth also being realized in prepaid cellular products. This growth is fueled by the desire of customers to better manage their mobile costs, and to have greater financial flexibility that the “contract” (or post-paid) services do not offer. The Company is currently in the final stages of development and will be launching the Wize Mobile brand of prepaid cellular products through this subsidiary.
Wize Communications: Wize Communications is a provider and master distributor of prepaid cellular and calling card products and services. The Company is a Mobile Virtual Network Operator (MVNO) providing a broad portfolio of value priced prepaid cellular plans to its subscribers through an extensive distribution network under the Wize Mobile(TM) brand. Wize Communications also distributes prepaid calling cards under the Wize(TM) brand as well as other brands that are sold on an exclusive basis in various regions throughout the U.S.