Virtutone Networks Inc Announces Results for the First Quarter Ended April 30, 2014 - Northern Michigan's News Leader

Virtutone Networks Inc Announces Results for the First Quarter Ended April 30, 2014

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Sherwood Park, AB / ACCESSWIRE / July 2, 2014 / Virtutone Networks Inc. (TSX-V:VFX) has released its unaudited financial results for the first quarter ended April 30, 2014.

Mr. William Woods reports:

“We are pleased with the continued progress made during the first quarter 2014, as sales revenues recorded were at record highs of $28.4 million.

Revenue from continuing operations increased by $25,164,768 to $28,362,967 for the first quarter ending April 30, 2014 compared to the first quarter ended April 30, 2013. Gross profit increased by $774,710 to $951,676 and expenses increased by 658,400 to $839,476 compared to the first quarter ended April 30, 2013.

Net income increased by $79,222 to $33,797 for the first quarter ending April 30, 2014 compared to the first quarter loss of $45,425 ended April 30, 2013. The increase growth of the revenues are the direct results of the dedicated efforts of the company’s focus on the wholesale business. The dedicated efforts have resulted in higher operational costs, yet the company reported its highest net income for a quarter. The company continues the dedicated efforts to increase sales while focusing its efforts to increase its net income quarter over quarter.

These financial results are presented in conformance with International Financial Reporting Standards (“IFRS”). Certain comparative figures have been restated to conform with the current year’s presentation. The Corporation’s retails division has been presented as loss from discontinued operations. All figures are in Canadian dollars unless otherwise noted. Certain operational measures such as “Adjusted EBITDA” and “Adjusted EBITDA from continuing operations” are not prescribed measures under IFRS. For a description of these measures, see the Operations and Non-IFRS Measures section in Virtutone’s 2014 fiscal year Management Discussion and analysis. The Company’s exclusive focus on its wholesale division has driven the increased revenue, gross profit and income from continuing operations.

Financial Table for the First Quarter Ended April 30, 2014 compared to April 30, 2013

 ----------------------------------------------------------
 |                 |2014       |2013      |Change     |%  |
 |--------------------------------------------------------|
 |Revenue          |$28,362,967|$3,198,199|$25,164,788|763|
 |--------------------------------------------------------|
 |Gross Profit     |$951,676   |$176,966  |$774,710   |438|
 |--------------------------------------------------------|
 |Expenses         |$839,476   |$181,076  |$658,400   |363|
 |--------------------------------------------------------|
 |Net Income (loss)|$33,797    |($45,425) |79,222     |174|
 ----------------------------------------------------------

Outlook:

Virtutone, through its wholesale market focus, is well positioned for growth. The Company’s wholesale division continues to achieve new milestones. The Company has tested and installed new software subsequent to year end that optimizes the Company’s voice traffic, resulting in increased margins. The Company recently announced the launch of its Short Message Service (SMS) division and expects the division to contribute to revenue and gross profit. The Company will seek financing through increases to existing debt facilities and new debt and/or equity financings in order to fund its growing working capital needs. The outcome of the Company’s financing efforts cannot be predicted at this time. The Company’s annual financial statements, management discussion and analysis, and other disclosures are available on SEDAR.

We seek Safe Harbor

Bill Woods, CMA

Chief Financial Officer

 

SOURCE: Virtutone Networks Inc.  

ReleaseID: 417457

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