Elephant Talk Communications, Inc. Announces 2008 Fiscal Year Results and Provides Shareholder Update
23 April 2009 - 5:13PM
PR Newswire (US)
- Shareholder Equity Improves $18.6 Million, to $8.8 Million, for
the Year Ended December 31, 2008 SCHIPHOL, the Netherlands, April
23 /PRNewswire-FirstCall/ -- Elephant Talk Communications, Inc.
(OTC:ETAK) (BULLETIN BOARD: ETAK) , an international telecom and
multimedia content distributor specializing in carrier grade mobile
enabling platforms announced 2008 fiscal year results on April 15,
2009 and is providing a shareholder update. KEY OPERATIONAL
HIGHLIGHTS -- Entered into a letter of intent to acquire
controlling interest in ValidSoft Limited. ValidSoft is an emerging
global leader in preventing electronic bank theft, credit card
fraud, and identity theft. -- Through its proprietary software,
ValidSoft provides strong mobile authentication, transaction
verification capabilities and location based services. ValidSoft's
software allows organizations to quickly implement solutions that
protect against the latest sophisticated fraud. -- The Company
internally funded and implemented a state of the art wireless and
converging telephony services platform that enables mobile phone
companies to operate on our platform. These customers are called
Mobile Virtual Network Operators ("MVNO's") and represent a fast
growing segment of the telecom industry and differentiate
themselves through branding and client oriented applications such
as pre-paid phone services and specific content. -- Our wireless
platform called a Mobile Virtual Network Enabler ("MVNE") provides
all the necessary lines, towers, spectrum and software
infrastructure to enable any company to enter the cell phone
service business on a turnkey basis. Our MVNE contract with
T-Mobile in the Netherlands became operational in September 2008;
currently 2 rapidly growing MVNO's are active on our Dutch MVNE
platform with at least 3 more contracted that should become
operational in the course of the second quarter of 2009. -- In
September 2008 Vizzavi Espana, a Vodafone Group Company, rewarded
ETAK with a contract to manage their Spanish MVNE platform; --
Final contracts are expected to be signed at the end of April 2009.
-- The first MVNO will go operational in May 2009, soon to be
followed by additional MVNO's. -- Elephant Talk expects to have 12
fully operational MVNO's by the end of this year, together creating
monthly revenues for ETAK of at least $ 1.0 million with a healthy
margin. -- The Company is currently involved in negotiations for
additional MVNE platforms in 3 European markets to be installed
over the next 12 months. "I am pleased with the major milestones
that we have achieved to date. We significantly bolstered our
catalog of service offerings and signed agreements with T-Mobile
and Vizzavi Espana, a Vodafone Group Company, and various other
telecom companies," stated Steven van der Velden, Chief Executive
Officer of Elephant Talk. "In addition to expanding our customer
base, Elephant Talk was also able to initiate entry into the multi
billion dollar fraud protection market via its relationship with
ValidSoft." Comparison for fiscal year ended December 31, 2008
versus December 31, 2007 -- Revenue recorded was $44,359,007 and
$47,361,028 for the years ended December 31, 2008 and 2007,
respectively. -- The decrease in the revenue, is due to
repositioning the focus of the company more towards new mobile
services Revenue consisted of fixed line telecommunications
services such as premium rate, carrier select, carrier pre-select,
Freephone (toll free) and pre-paid calling cards services provided
to a wide range of customers. -- Cost of service was $43,336,111
and $45,608,557 for the years ended December 31, 2008. -- Cost of
service include origination, termination, network and billing
charges from telecommunications operators, out payment costs to
content and information providers, network costs, data centre
costs, facility cost of hosting network and equipment and cost in
providing resale arrangements with long distance service providers,
cost of leasing transmission facilities and international gateway
switches for voice and data transmission services. -- The Company
recorded a net loss of $16.0 million and $12.1 million for the year
ended December 31, 2008 and 2007 respectively. -- The increase in
net loss was primarily due to a significant increase in Operational
Expenditures for the development of the new Mobile Services
Platform of the company and an impairment charge of almost $ 4
million to intangible assets. -- Current liabilities decreased to
$10.0 million from $34.1 million compared with December 31, 2007.
-- Current ratio of assets to liabilities improved from .27 to 1 to
.83 to 1 compared with December 31, 2007. -- Shareholders Equity
improved from ($9.7) million to $8.8 million for an improvement of
$18.6 million compared with December 31, 2007. 2009 Business
Outlook Elephant Talk's objective for the remainder of 2009 is to
continue its development as an international telecom operator and
enabler to the multimedia industry. -- Leverage ValidSoft's strong
mobile authentication, transaction verification capabilities and
location based services technology to provide superior service to
the emerging global fraud prevention markets. -- Expand
relationships with T-Mobile, Vizzavi Espana, a Vodafone Group
company and other major telecom operators, mobile virtual network
operators, banks, and government agencies. -- Continue to pursue
strategic acquisitions. Mr. van der Velden, commented, "I am very
optimistic about reinvigorating the growth model in 2009. The
infrastructure which has been fully funded by insiders since
inception is now completely in place. With a strong operating
platform, best in class service offerings, and established
relationships with global telecom leaders, I am confident that we
will emerge as one of the market leaders. Management will remain
focused on executing its strategic plan of operations, and
increasing both its market footprint, and overall customer base. We
are confident that we will successfully roll out our previously
announced new business relationships, while attracting new growth
opportunities, throughout the rest of 2009. The investments in time
and money made in 2008, which resulted in a temporary decrease in
revenues, will prove increasingly valuable to our shareholders
going forward. All the necessary building blocks for infrastructure
put in place during 2008 will allow Elephant Talk to capture
significant market share in Europe, the Middle East and Asia in the
future." 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.
Contact Elephant Talk Communications, Inc. Mr. Steven van der
Velden Tel: + 31 20 653 59 16 E-mail: http://www.elephanttalk.com/
Or Alliance Advisors, LLC Mr. Thomas Walsh Tel: (212) 398-3487
E-mail: DATASOURCE: Elephant Talk Communications, Inc. CONTACT: Mr.
Steven van der Velden of Elephant Talk Communications, Inc.,
+31-20-653-59-16, ; or Mr. Thomas Walsh of Alliance Advisors, LLC,
+1-212-398-3487, Web Site: http://www.elephanttalk.com/
Copyright