LAKE OSWEGO, Ore., Oct. 14, 2003 (PRIMEZONE) -- ICM Telecommunications, Inc. (Other OTC:ICMH), a rapidly growing provider of prepaid pin-based products through its Point of Sales Activation (POSA) terminals, today reported that in the months of August and September it experienced increased revenues from its terminals now in operation in Oregon and Washington.
"During August, revenue per machine reached an average $139 per month, and rose 28% in September, to $178 per machine," said ICM Telecommunications CEO Doug Hamby. "Our projected revenues per terminal for the month of October, based on results to date, is expected to climb to $200 per terminal, up an additional 12%, and $61 per month more when compared to August results.
"Meanwhile," Hamby said, "we continue to lease additional terminals to permit us to expand our operations into Arizona, Northern and Southern California, as well as to college bookstores."
Hamby also reported that demand for the company's Samsung 850 flip top cellular telephones, which come ready to use and with prepaid time, continues very strong. He also revealed that the company is obtaining these cell phones from Omni Prepaid, a large Atlanta-based Mobile Virtual Network Operations (MVNO) company, and that the phones operate on the vast nationwide Verizon wireless network.
"To fuel this growth, we are continuing discussions with several funding sources," Hamby continued. "Over the near term, to execute our marketing expansion plans, hire additional personnel, and upgrade our stock listing, we are seeking additional funds that will net the company approximately $1 million in new working capital."
The CEO said ICM's opportunities continue to be virtually limitless since it competes in one of the telecommunications industry's most rapidly growing segments. He noted that the fastest growing part of the POSA terminal market is for prepaid cellular telephone services.
A recent industry study predicts that the prepaid cellular market will grow to as much as $4.4 billion this year, up more than 33% from the $3.3 billion in prepaid cellular revenues recorded last year, and industry analysts see this telecom industry segment approaching the $10 billion threshold by 2007. The prepaid long distance calling card market is also growing rapidly. The combined growth of both suggests to industry observers these two markets will help contribute to an overall explosive growth path for the POSA terminal market for prepaid products, climbing to as high as $16 billion by the end of 2004.
Beyond prepaid cellular and long distance phone cards, Hamby said the company currently is working with national partners to offer business solutions that focus on delivering multiple prepaid communications services to numerous market segments, all from a single source.
"At the heart of these services, of course, is our Electronic Payment & Inventory System (EPIS). The suite of services offered by the proprietary EPIS hardware and software package enables the retailer to process all these services, as well as merchant services such as Visa and MasterCard transactions, all on the same terminal. As an ISO for merchant services products, ICM can therefore offer a complete package of services to the retailer."
The company sells its products through high traffic retailers such as convenience stores, drugstores and video rental shops. Their returning customers are the most typical potential users of ICM's products and services in the general consumer field. Going forward, Hamby said, the company also anticipates marketing directly to travel centers and truck stops nationwide. "We also anticipate the development of a dealer network of independent sales professionals to market ICM products and services on a regional basis, selling to the same kinds of customers the company has established in its program rollout."
The CEO noted that ICM is concurrently pursuing marketing agreements with other organizations to further its identity in the private label loyalty card market. It plans to include these partners marketing its products along with their own lines. These master distributors will carry non-competing products complementary to ICM's product line and give their customers new sources of revenue.
"Our industry is expected to continue to experience solid growth over the next five years," Hamby said, "with the current $3.7 billion market expected to expand by another 73%. In fact, some 74% of retail service providers are expected to add POSA features to their stores by 2005."
In closing, Hamby noted that Jack Hoyt, a former company officer, recently left ICM to pursue other interests. "Jack made important contributions to our start-up efforts, and we wish him all the best in his new endeavors," said Hamby.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance, or expectations expressed or implied by such forward-looking statements.