Dallas, Texas (November 17, 2011) – StockGuru Shines its Spotlight on Voiceserve, Inc. (OTCBB: VSRV), a low-cost, next-generation Internet Telephony software and service provider, yesterday reported financial results for its second quarter and six month period ended September 30, 2011. During the second quarter of its 2012 fiscal year, Voiceserve released an advanced version of its mobile dialers enabling HD quality video calls and in mid-September entered into a private-label initiative with Dialogic Inc. as well as a strategic partnership with Grandstream Networks Inc. Subsequent to quarter end, Voiceserve perfected its VoIP video-on-demand capability and won the Internet Telephony 2011 IPTV Excellence Award for its VOD platform. The Company closed on November 16, 2011, $0.192, trading in a fifty-two week range of $0.50 – 0.09.
During the second quarter ended September 30, 2011, the Company generated revenues of $1,008,858 compared to $1,034,725 for the previous fiscal year second quarter and $1,172,656 for the current fiscal year first quarter. The period between June 30 and September 30 is historically the Company’s slowest period due to vacations and religious holidays throughout its currently dominant markets (Europe and the Middle East). The Company reported a net loss for the current second quarter of $(36,167), which included a stock warrant revaluation credit of $243,143. This compares to a net loss of $(592,203) or $(0.02) per basic share in the previous fiscal year second quarter and a net loss of $(1,133,580) in the first quarter of the current fiscal year, which included stock warrant revaluation charges of $450,954.
The Company reported revenues of $2,181,514 for the first six months of fiscal year 2011, a 3 percent increase over the same period of the previous fiscal year. The Company reported a net loss for the current six month period of $(1,169,747) or $(0.03) per basic share, which includes stock based compensation of $578,811 and warrant revaluation charges of $207,811. This compares to a net loss of $(466,694) or $(0.01) per basic share for the same period of the previous fiscal year, which includes stock based compensation of $308,462. The Company’s net cash used in operating activities was $351,728 for the current six month period and $197,881 in the comparable period of the previous fiscal year.
Sales, general and administrative (SG&A) costs during the first six months of fiscal 2011 were $1,898,905, compared $1,724,116 for the six month period of the previous fiscal year. The Company’s gross margin increased to 50 percent during the current fiscal year second quarter from 37 percent in the previous quarter and 46 percent in the previous fiscal year second quarter. The Company expects to improve gross margin back to its traditional average of approximately 65 percent as its commercial business and recurring revenues develops further.
Cash and cash equivalents as of September 30, 2011 were $266,262 and the Company has no long term debt.
Michael Bibelman, Voiceserve’s CEO, said, “Our Voipswitch software sales into the wholesale/retail markets continue to be steady, despite the global economic slowdown. This revenue level has been consistent for many quarters. The breakthrough in revenues anticipated this second quarter was expected to come from the expansion of our business into the commercial market. While we are receiving much interest among the larger international entities, the complexities associated with testing, assimilating and tailoring systems to accommodate the specific needs of large service providers is time consuming. As such, our expectations of the sales cycle necessary to achieve commercial engagements is longer than we originally anticipated, and can extend up to nine to twelve months.” Mr. Bibelman continued, “We are nearing final testing phase with several commercial service providers and are in contract negotiations with a couple marquee entities, which we hope to deliver by year end.”
“Our product offering has evolved and expanded dramatically over the last three months. Voiceserve’s typical clients have always been small to medium size VOIP operators. Over the past few months the company has enhanced its scope of products and is now winning some higher quality contracts globally. These contracts include personalization and customization of certain features. All of us at Voiceserve are doing our utmost to achieve the anticipated projections, even in the light of the stressed economic conditions worldwide which have led to elongated sales cycle. With the newest release of our latest software and features, we maintain our optimistic stand that the demand for our products will continue to grow.” commented Alexander Ellinson, Voiceserve’s Chairman.
About Voiceserve, Inc.
Voiceserve is a software platform provider focusing primarily on delivering affordable, complete, next generation services to Internet Telephony Providers (ITSPs). Products include VoipSwitch, a custom modular all-in-one Voice over Internet Protocol (VoIP) management platform licensing solution for resellers; VoIP airtime minutes bundled with optional convenient features, including virtual numbers, direct dial, web callback, and call forwarding; IP-PBX; and mobile softphone, and video technologies.
Certain statements in this news release may constitute “forward-looking” statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Risk factors are listed in the most recent Annual Report on Form 10-KB and Quarterly Report on Form 10-QB filed with the Securities and Exchange Commission.
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