Farmstead Telephone Group, Inc. Reports Second Quarter 2005 Operating Results
04 August 2005 - 3:30PM
PR Newswire (US)
Company also reports revenue growth of 55% EAST HARTFORD, Conn.,
Aug. 4 /PRNewswire-FirstCall/ -- Farmstead Telephone Group, Inc.
(AMEX:FTG) announced operating results for the second quarter ended
June 30, 2005. For the quarter ended June 30, 2005, revenues were
$4,483,000, a 55 percent increase over reported revenues of
$2,889,000 for Q2 2004. The Company reported a net loss for the
quarter of $474,000, or $(0.14) per share, compared with a net loss
of $414,000 or $(0.12) per share, in 2004. The net loss for the
2005 quarter included one-time as well as recurring expenses
incurred in connection with the formation of its wholly owned
subsidiary, One IP Voice, and the development of its product
offerings. The Company attributed its Q2 2005 improved revenue
results to increased market penetration for its products and
services as a result of its first quarter national launch of its
Small to Medium Business (SMB) group, which is targeting businesses
with under 200 employees, as well as improved gross margin
contributions from this segment. Jean-Marc Stiegemeier, Farmstead's
Chairman and CEO commented "Our second quarter results illustrate
that our strategic efforts continue to be successful. The primary
drivers in our improved results were attributable to an increased
revenue contribution from our SMB group, improved gross margins and
increased system sales to large enterprise customers. Other
significant accomplishments included: -- We recorded a profit in
June 2005, which was our first profitable month since May 2003. --
Q2 2005 was the highest revenue quarter since Q3 2002. -- Q2 2005
gross margin increased to 30%, verses 21% for Q2 2004. -- The
beginning of the investment and build out of the One IP Voice
hosted platform which is expected to be fully deployed for beta
testing by September 2005. -- Finalized the deployment of our 'One
Net' Wide Area network (WAN), offering last mile connectivity for
voice, data and video nationwide and Canada. -- Provided the
financial markets with 'financial estimates' projections. This
represents the first 'go forward' estimates provided to the
financial markets in years. Since assuming the responsibilities of
Chief Executive Officer on October 1, 2004, Farmstead has focused
its efforts in two specific areas. The first was to return the
Company's 'core' business to profitability, and the second was to
strategically re-direct the Company to become a carrier based
provider of Voice Over Intelligent Protocol(TM) (VOIP) solutions to
the under 200 employee (SMB) marketplace. To date we have made
significant progress in stabilizing and growing the Company's
'core' business, and our Hosted One IP Voice offering is on
schedule to be deployed nationally in September. As we continue to
improve the operating results of our 'core' business we are also
transitioning Farmstead to become a carrier based provider of
Hosted telecommunications services which will include; Hosted IP
Centrex and IP Trunking, bundled with private One IP Voice, One
Net, 'Last Mile' connectivity on a national basis, long distance
calling, On Net calling, local area calling, 911 capabilities, and
Wide Area Network (WAN) that includes voice, data and video
connectivity. As we execute our strategic redirection, we will
continue to build a strong leadership team that is empowered to
increase shareholder value." About Farmstead Farmstead Telephone
Group, Inc. is a national provider of telecommunications systems
and services. As an Avaya partner it offers systems design,
installation and services on a national basis. The Company is
currently deploying its carrier based Hosted offerings through its
One IP Voice subsidiary. Once the One IP Voice platform is fully
deployed the Company intends to become the largest provider of
Hosted telecommunications services to the SMB market nationally.
Further information about Farmstead Telephone may be found at
http://www.farmstead.com/. Farmstead Telephone Group Financial
Highlights Quarter ended June 30, Six months ended June 30, 2005
2004 2005 2004 Revenues $4,483,000 $2,889,000 $6,892,000 $6,295,000
Net Loss $(474,000) $(414,000) $(1,112,000) $(755,000) Basic and
Diluted Net Loss Per Share $(0.14) $(0.12) $(0.33) $(0.23) Weighted
Average Shares Outstanding 3,353,000 3,316,000 3,340,000 3,314,000
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Investor Contact: Alex Lewis or Dave Gentry Aurelius Consulting
Group 407-644-4256 http://www.runonideas.com/ This release contains
forward-looking statements that involve risks and uncertainties. In
addition to historical information, investors should consider
carefully the risks associated with an investment in the Company's
securities as previously outlined by the Company in its prior
filings with the Securities and Exchange Commission. Contact:
Robert G. LaVigne, CFO Farmstead Telephone Group, Inc. Voice:
860-610-6002 Fax: 860-610-6001 DATASOURCE: Farmstead Telephone
Group, Inc. CONTACT: Robert G. LaVigne, CFO of Farmstead Telephone
Group, Inc., +1-860-610-6002; or Investor Contact: Alex Lewis or
Dave Gentry of Aurelius Consulting Group, +1-407-644-4256, Web
site: http://www.farmstead.com/
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