TORONTO, Dec. 28, 2001 (PRIMEZONE) -- Orbit E-Commerce, Inc. ("Orbit" or "the Company") (OTCBB:OECI) today announced that it has filed its 10-QSB report to the Securities and Exchange Commission ("SEC") detailing its results for the quarter ending October 31, 2001.
For the quarter ended October 31, 2001 Orbit earned revenue of US$325,453 from subscribers to its VoIP service in Canada. This compares to zero revenue in the corresponding quarter last year and $230,405 for the previous quarter ended July 31, 2001. At the end of the reporting quarter the company had approximately 5,500 paying subscribers and is experiencing a low attrition rate in its customer base. As expected the company's cost of communication services increased from the quarter ended October 31, 2000 as Orbit now has a communications network of 12 points of presence (POPs) between Vancouver and Montreal covering approximately 85% of the country's population. The company was successful in reducing its selling general and administrative expense by approximately $217,000 in a quarterly year over a year comparison. The net result was a loss from operations of $347,674 in the quarter just ended compared to a loss of $493,933 in the corresponding quarter last year.
During the ended October 31, 2001, Orbit accomplished several of its strategic objectives, including completing an Agreement with IBM to expand Orbit's VoIP network into the United States, commencing in the New York City area and six other major population centers. All seven cities are expected to be operational by the end of March 2002. Also in this quarter, Orbit identified a marketing firm whose members are highly experienced in marketing and selling telecommunication services and is negotiating an Agreement with this firm to market Orbit's VoIP services to consumers in Canada and the United States. In addition, the Company concluded several wholesale agreements to provide call delivery services on its network to long distance carriers. These agreements are now producing revenue and will ultimately reduce the Company's telecommunications expenses and cash flow through lower costs and minute trading with these organizations.
Looking to the Company's long term capital requirements, Orbit engaged the services of a boutique venture banking firm with offices in New York and Toronto, to source investment capital in North America to fund the Company's expansion in the United States.
Douglas Lloyd, President and CEO, stated, "This quarter has been an extremely productive period for Orbit and we are excited about our prospects, particularly as we expand into the United States, a $110 billion long distance communications market."
About Orbit Canada Inc./Orbit E-Commerce Inc.
Orbit Canada Inc. is a wholly owned subsidiary of Orbit E-Commerce Inc. (OTCBB:OECI). Its advanced IP network spans Canada and serves up to 85% of the nation's populace. Installation of gateways in the United States is underway. Orbit Canada's VoIP network allows subscribers to use their own telephone equipment to make Internet-routed long-distance calls rather than forcing consumers to connect through PC's or special Internet telephones. The development of this user-friendly VoIP format led Frost & Sullivan to award Orbit the research company's much-sought-after Product Innovation Award. In granting this award, Frost & Sullivan claimed that Orbit's network was a model for entrants into the telecommunications field who want to use the new VoIP technologies.
Forward-Looking Statements
Forward-Looking Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions including potential issues relating to interoperability, inability to introduce new products, changes in market conditions, government regulations, technological changes and other factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.