XFONE Reports Third Quarter Revenue Increase of 113.8 % to $26 Million
November 14, 2008
Lubbock, TX – November 14, 2008 – XFONE, Inc. (NYSE Alternext and TASE: XFN) (“XFONE” or “the Company”) announced results for the three months and nine months ended September 30, 2008.
Financial highlights for the three months ended September 30, 2008 compared to the three months ended September 30, 2007:
- Total revenues increased 113.8% to $26 million from $12.1 million
- Excluding non-recurring expense (related to the previously contemplated Tadiran Telecom acquisition), EBITDA (earnings before interest, taxes, depreciation and amortization) was approximately $3.2 million versus $1.1 million
- Excluding non-recurring expense, operating income increased 130.9% to $2 million compared to $848,544
- Net financing expenses increased to approximately $1 million from $73,652. $953,843 of the expense is attributed to the effect of fluctuation in the exchange rate of the New Israeli Shekel (NIS) on Xfone’s bonds stated in NIS, linkage to the Israeli CPI and interest payable on the Company’s bonds.
- The Company reported net income of $637,639 or $0.035 per share assuming 18,390,518 diluted shares outstanding compared to net income of $565,467 or $0.049 per share assuming 11,528,181 diluted shares outstanding through September 30, 2007.
Financial highlights for the nine months ended September 30, 2008 compared to the nine months ended September 30, 2007:
- Total revenues increased 91.5% to $67.6 million compared to $35.3 million
- Operating income, excluding non-recurring expense, increased 115% to $5 million compared to $2.3 million
- Net financing expenses for the nine months ended September 30 increased to $5 million from $380,347. Approximately $3.2 million of the increase in the financial expenses is attributed to the effect of fluctuation in the exchange rate of the New Israeli Shekel (NIS) on Xfone’s bonds stated in NIS and linked to the Israeli CPI. Approximately $1.2 million of the expense is attributed to interest payable on the Company’s bonds.
- Xfone reported a net loss of approximately $(244,589) or $(0.014) per share assuming 17,371,811 diluted shares outstanding compared to net income of $1.4 million or $0.124 per share assuming 11,495,871 diluted shares outstanding through the first nine months of 2007.
Guy Nissenson, President and CEO, commented, “We are pleased with our results in the third quarter of 2008. Our Levelland Fiber-To-The-Premise (“FTTP”) buildout is progressing well, and we recently announced the beginning of the project’s final phase of construction. We expect to complete phase two, connecting fiber from the center of Lubbock to the intercity fiber route by the end of November 2008. FTTP revenues grew 5% during the quarter ended September 30, 2008 compared to the previous quarter. That being said, the state of the global economy has declined since the close of the quarter, and we are closely monitoring the effects of the softening economy and its implications on our business, including the possibility of cash flow limitations caused by longer payment cycles, uncollectible accounts receivables, financially distressed business customers and residential disconnects. It is important to note that while no business is immune to the effects of the economy, Xfone provides voice, video and data services that we believe to be more necessity than luxury, as demonstrated by the continued demand for our Fiber-to–the-Premise triple play offering. ”
Mr. Nissenson continued, “Looking at each of our divisions in the third quarter of 2008, revenues from U.S. operations were approximately $18.2 million compared to $2.8 million in the third quarter of 2007. The U.S. now accounts for approximately 70% of our total sales. Xfone 018, our Israeli division, generated approximately $2.6 million in the third quarter compared to $2.1 million in the same quarter of last year. Revenue from our U.K. division was $5.2 million in the third quarter of 2008, a decrease from approximately $7.2 million reported in the same quarter of last year but an increase from $4.7 million in the second quarter of this year.”
Conference Call:
The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the financial results. The conference call may be accessed in the U.S. and Canada by dialing toll- free 1-877-407-8033. International callers may access the call by dialing 1-201-689-8033.
A replay of the teleconference will be available for 30 days after the call and may be accessed domestically by dialing 1-877-660-6853 and international callers may dial 1-201-612-7415 Callers must enter account number 286 and conference number 302897.
To access the live webcast, log onto the XFONE website at http://www.xfone.com. The webcast can also be accessed at http://www.InvestorCalendar.com. An online replay will be available shortly after the call.
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers worldwide. For the Company’s website, please visit: www.xfone.com
This press release contains forward-looking statements. The words or phrases "should," "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." The Company's financial results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this press release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, and license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
| For More Information,
Please Contact: |
| U.S. IR Contact |
Israel IR Contact |
Xfone Contact |
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: 1-203-972-9200
E-mail: jnesbett@institutionalms.com
|
Zvi Rabin
Kwan Communications
Tel: (Israel) +972 50 560 0140
E-mail: zvi@kwan.co.il |
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: niv@xfone.com |
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