WHITE PLAINS, N.Y., April 21, 2009 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCBB:PVSP), a leading provider of wholesale Voice over Internet Protocol (VoIP) telephone services, today reported financial results for its first quarter ended February 28, 2009. The Company also noted it believes it can achieve first-mover advantage in the U.S. Mobile VoIP Market through its wholesale customer, Zer01 Communications, to provide VoIP-enabled service to mobile-phone customers across the United States and throughout 130 countries.
Company Continues to Deliver Sequential Revenue Gains
For the Company's first fiscal quarter ended February 28, 2009, revenues totaled $593,243, up 38% from $430,704 in the first fiscal quarter of 2008 and up 4% from $571,763 in the fourth fiscal quarter of 2008. The increases were due primarily to increased customer counts as well as a higher usage volume from customers who use the VoIP services provided by the Company's wholly-owned subsidiary, VoX Communications.
Net income for the fiscal quarter ended February 28, 2009 was $1,161,852, or $0.04 per share, compared to a net loss of ($3,805,201), or ($0.15) per share, in the first fiscal quarter of 2008. Diluted earnings per share for the first fiscal quarter of 2009 amounted to $0.02. The mark-to-market adjustment to the Company's warrant liability resulted in warrant income for the three-month period ended February 28, 2009 of approximately $2,551,000, as compared to a warrant expense of approximately $2,714,000 for the three-month period ended February 29, 2008.
Loss from operations rose slightly to ($928,742) for the three-month period ended February 28, 2009 from ($843,580) for the prior-year period. Overhead cuts that were implemented late in February 2009 have resulted in a decrease in selling and administrative costs of approximately $100,000 in the month of March 2009, as compared to February 2009.
CEO Notes High Demand for Mobile VoIP Phones
The Company's CEO, Paul Riss, noted, "We are very encouraged by the overwhelming response we have received regarding the Zer01 Mobile VoIP service. Even more important is the industry-wide recognition that Zer01 has received for winning the award for 'Best Overall Product' at the CTIA wireless show earlier this month. The Mobile VoIP product that Zer01 has developed is continuing to attract attention from a variety of industry experts. BusinessWeek.com recently noted that iPhone users may want to consider switching off the AT&T platform when their service contract expires because Zer01 has unlimited data to a mobile device and a lower price and does not require a long-term service contract. The BusinessWeek.com article also noted that Zer01's service is so powerful that users should tether their Zer01 phone to their laptop to obtain Internet connectivity from cell phone towers, and that this type of data usage is not available on AT&T service plans. We applaud Zer01's vision and creativity that allows it to run over multiple operating systems so that an iPhone, a BlackBerry or an Android phone can eventually utilize Zer01's money-saving service. Zer01 and Vox have received so much demand for the product that Zer01 has been able to hand pick some very impressive customers to participate in its beta test. We look forward to the commercial launch of the product, which is scheduled for July 1, 2009."
The Company believes Zer01's roll-out of mobile services will represent the first time in the U.S. that VoIP will be available directly over the cellular system, without the need for a computer, a Wi-Fi "hot spot" or any other device other than a mobile phone. Many believe this technology is truly invasive as it uniquely combines mobile phone convenience with the affordability of VoIP. It has the potential ultimately to become the dominant mobile voice technology at a time when users by the millions are leaving the landline world and opting for mobile phones as their main communication device. It is creating a potentially vast "VoIP Everywhere" market -- a market in which the Company could have first-mover advantage.
Riss continued, "Pervasip's vision is to become a pervasive IP carrier, which fits perfectly with the 'VoIP Everywhere' capability that Zer01 gives us. We have spent most of our energies this year coordinating our VoIP services over Zer01's data network, and this time commitment to Zer01 has slowed our rate of growth in the first quarter of fiscal 2009 to only 4% over the fourth quarter of fiscal 2008. We do not expect significant growth in our second fiscal quarter either. However, we believe the time and effort we have expended on the Zer01 project will bring us substantial rewards and significant sales growth after the commercial launch of Zer01's mobile phone service. We believe that the Zer01 product will be a game-changer in the industry, and consequently, we have been focusing a significant portion of our resources on this project."
For additional disclosure regarding the Company's operating results, refer to the Company's Quarterly Report on Form 10-Q, which has been filed with the Securities and Exchange Commission.
About Pervasip
Pervasip Corp. (OTCBB:PVSP), through its wholly-owned subsidiary, VoX Communications, delivers wholesale voice over IP (VoIP) telephone services for the residential and small business markets. Leveraging a nationwide VoIP network and internally developed proprietary software and product features, VoX offers a private-label digital voice program sold to cable operators, WiMax carriers, CLECs, ISPs, cell phone carriers and resellers. Pervasip differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems that enable a quick turn-up for service providers at attractive margins. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. In addition, Pervasip offers carrier-type services for voice origination and termination, as well as 800 and other IP-based services. For more information, please visit www.voxcorp.net and www.pervasip.com.
Forward-looking statements: This release contains forward-looking statements that involve risks and uncertainties. Pervasip's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, certain risks and uncertainties over which the company may have no control. For further discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in Pervasip's Annual Report on Form 10-KSB for the year ended November 30, 2008 and any subsequent SEC filings.
Pervasip Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss)
(Unaudited)
For the Three Months Ended
---------------------------
Feb. 28, Feb. 29,
2009 2008
------------- -------------
Revenues $593,243 $430,704
------------- -------------
Costs and expenses:
Costs of services 523,003 453,050
Selling, general and administrative 861,596 699,257
Depreciation and amortization 137,386 121,977
------------- -------------
Total costs and expenses 1,521,985 1,274,284
------------- -------------
Loss from operations (928,742) (843,580)
------------- -------------
Other income (expense):
Interest expense (462,000) (243,478)
Interest and other income 1,179 10,953
Change in warrant valuation 2,551,415 (2,714,096)
------------- -------------
Total other income (expense) 2,090,594 (2,946,621)
------------- -------------
Net income (loss) 1,161,852 (3,790,021)
Other comprehensive loss -
foreign currency translation
adjustment (2,051) --
unrealized loss on marketable
securities -- (15,000)
------------- -------------
Comprehensive income (loss) $1,159,801 ($3,805,201)
============= =============
Basic earnings (loss) per share: $0.04 ($0.15)
============= =============
Diluted earnings (loss) per share $0.02 ($0.15)
============= =============
Shares used in per share computation:
Basic 26,242,839 25,835,458
============= =============
Diluted 76,495,046 25,835,458
============= =============