Elephant Talk Communications Provides Guidance for New Netherlands & Spain Agreements
13 Juli 2009 - 4:23PM
PR Newswire (US)
- $6 Million of New Revenue for Q3 & Q4 of 2009 - Growing to
$24 Million of Additional Revenue in 2010 - Gross Margins Expected
to Reach 40% SCHIPHOL, Netherlands, July 13 /PRNewswire-FirstCall/
-- Elephant Talk Communications, Inc. (OTC:ETAK) (BULLETIN BOARD:
ETAK) , an international telecom and multimedia content
distributor, specializing in carrier grade mobile delivery
platforms, today announced revenue guidance pertaining to contracts
recently signed in the Netherlands and Spain. These agreements are
expected to generate revenues in excess of $6 million in the 2nd
half of 2009 and over $24 million in 2010. The contracts are a
result of Elephant Talk's relationships with Vizzavi Espana, a
Vodafone Group Company, and T-Mobile Netherlands B.V and represent
a new revenue stream for the Company above the trailing twelve
months revenue of approximately $42 million. "We are extremely
pleased to provide guidance of over $45 million in the next 2 years
of working with both Vizzavi Espana and T-Mobile Netherlands,"
stated Steven van der Velden, Chief Executive Officer of Elephant
Talk Communications. "Management expects that we will achieve an
average of 40% gross margins on the services we are providing under
our contracts with both groups. It is important to recognize that
this data represents only two of Elephant Talk's potentially many
international markets. These contracts mark Elephants Talk's entry
into the mobile communications market. The Company has invested in
excess of $30 million in the ET Boss software operating platform
and related mobile capabilities and is now poised to generate a
return on its investment." It is estimated that there will be 6-7
billion mobile handsets in use within the next five years. In most
mature markets, on average, nearly 10-12% of all handsets are
currently marketed by virtual operators. These projections would
result in a global marketplace of potentially 700 million handheld
devices that Elephant Talk could help serve as referenced by
GlobalComms Insight. With average annual revenue of $150 per user,
this would result in a worldwide mobile market for virtual
operators that will exceed $10 billion a year. "The ET Boss
software platform has enabled us to secure these major new
agreements and we believe that with our new product offerings we
can focus on attracting additional contracts that will assist us in
capturing market share from the competition, while increasing our
geographic footprint," stated, Mr. van der Velden. "This will help
us achieve our primary goal of increasing shareholder value through
increased earnings." About Elephant Talk Communications Elephant
Talk Communications is positioning itself as an international
telecom operator and enabler to the multimedia industry by
facilitating the distribution of all forms of content as well as
mobile and fixed telecom services to global telecommunications
consumers. The Company provides traditional telecom services, media
streaming, and distribution services primarily to the
business-to-business (B2B) community within the telecommunications
market where it has a presence. The Company's global footprint as a
fully licensed carrier, supported by its propriety IN (Intelligent
Network) and Billing/CRM (Client Relationship Management) Systems,
has been designed to offer cutting-edge solutions to the
increasingly competitive global multimedia industry. Elephant
Talk's telecommunications platform eliminates the usual limitations
caused by national borders, networks, devices or media and,
therefore, enables its B2B customers to operate as independent
telecom and multimedia distribution organizations. Elephant Talk is
also a developer for mobile telecom and content distribution
solutions; and, as a Mobile Virtual Network Enabler (MVNE), the
company has positioned itself as the premier outsourcing partner
for both Mobile Network Operators (MNO's) as well as for Mobile
Virtual Network Operators (MVNO's). At the same time, Elephant Talk
assists its MNO partners to more efficiently provide a broad range
of sophisticated services to their own existing base of MVNO's.
Elephant Talk is positioning itself as the preferred MVNE partner
of the larger, global Mobile Operators and currently operates
sophisticated networks in over a dozen markets in Europe, Asia
Pacific, and the Middle East. The Company was ranked fifth on the
Orange County 2008 Deloitte Technology Fast 50. For more
information, visit: http://www.elephanttalk.com/. Forward-Looking
Statements Certain statements contained herein constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations, estimates and
projections about the Company's industry, management's beliefs and
certain assumptions made by management. Readers are cautioned that
any such forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Because such statements
involve risks and uncertainties, the actual results and performance
of the Company may differ materially from the results expressed or
implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Unless otherwise required by law,
the Company also disclaims any obligation to update its view of any
such risks or uncertainties or to announce publicly the result of
any revisions to the forward-looking statements made here; however,
readers should review carefully reports or documents the Company
files periodically with the Securities and Exchange Commission. For
media enquiries, please contact: Elephant Talk Communications, Inc.
Mr. Steven van der Velden Tel: +31 20 653 59 16 Email:
http://www.elephanttalk.com/ Or Investor Relations: Alliance
Advisors for Elephant Talk Thomas Walsh Tel: 212-398-3487
DATASOURCE: Elephant Talk Communications, Inc. CONTACT: Mr. Steven
van der Velden, Elephant Talk Communications, Inc.,
+31-20-653-59-16, , or Investor Relations: Alliance Advisors for
Elephant Talk, Thomas Walsh, +1-212-398-3487, Web Site:
http://www.elephanttalk.com/
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