Message #13 From:
NewsBot Date: August 14, 2006 01:15:00 PM
CORG News Cordia Corporation Announces Financial Results for the Second Quarter of 2006
WINTER GARDEN, Fla.--(BUSINESS WIRE)--Aug. 14, 2006--Cordia Corporation ("Cordia") (OTCBB: CORG), a global telecommunications service provider of wireline and Voice over Internet Protocol ("VoIP") services announced the results of operations for the second quarter ended June 30, 2006.
Cordia reported revenues of approximately $9.2 million for the quarter ended June 30, 2006, compared to approximately $10 million in reported revenues for the quarter ended June 30, 2005. Revenues for the six months ended June 30, 2006, and June 30, 2005, remained approximately the same at $19.3 million.
Overall, Cordia reported a net loss of $(338,859), or $(0.06) per share (basic and diluted) for the second quarter of 2006, compared to net income of $437,972, or $0.10 per basic share and $0.07 per fully diluted share for the second quarter in 2005. Gross profit decreased to $4.2 million for the quarter ended June 30, 2006 compared to $5.0 million reported for the quarter ended June 30, 2005. Operating expenses which included sales and marketing, provision for doubtful accounts, general and administrative expenses and depreciation were approximately the same for both quarters ended June 30, 2006, and 2005, at $4.6 million.
Joel Dupre, Chief Executive Officer of Cordia stated, "Although we reported a net loss for the quarter we will continue our geographical expansion of our wireline offerings in the United States and our VoIP services and related services offerings on a global scale. During the third quarter of 2006, we will strengthen our global VoIP footprint as we market and develop our international VoIP product in the APAC region and promote the services offered by Canal West Solucoes em Informatica Ltda, a Brazilian VoIP provider in which we recently acquired a controlling interest. We are excited about our prospects in Brazil, as this country accounts for the majority of the telecommunications business in South America and we believe that this acquisition will provide us with a solid foothold to take advantage of the emerging telecommunications opportunities on this continent."
Mr. Dupre continued, "Cordia's management has confidence in its business plan and its ability to execute this plan. Our confidence and the belief that our current market valuation is not an accurate reflection of Cordia's underlying value has caused management to take steps to improve Cordia's capital structure. In June 2006, we bought all of our existing outstanding warrants, which represented 1,170,000 shares of common stock for a purchase price of $309,000 and in July 2006, Cordia's Board approved a stock buy back program. Cordia is authorized to spend an aggregate of $500,000 during 2006 to repurchase its common stock so long as the market price does not exceed $1. We believe the repurchase of the warrants will increase shareholder value by reducing prospective shareholder dilution and our buy back plan demonstrates management's confidence in Cordia."
Kevin Griffo, President of Cordia, commented, "In addition to our global expansion of VoIP, we will continue focusing on our core wireline business. By the end of 2006, we anticipate expanding Cordia's territory to include Minnesota, Maryland, and Virginia. In addition, we recently launched My Tel Co, Inc., as a competitive local exchange carrier providing services to consumers in the secondary consumer credit market, a market not currently served by Cordia. We believe the addition of new territories and the launch of My Tel will provide Cordia with a growth in sales and increase the potential for positive earnings by the fourth quarter of 2006."
Conference Call Reminder
The conference call will take place at 11 a.m. eastern, on Wednesday, August 16, 2006. Anyone interested in participating should dial 800-936-9754 if calling within the United States or 973-935-2048 if calling internationally approximately 5 to 10 minutes prior to 11:00 a.m. There will be a playback available until August 29, 2006. To listen to the playback, please call 877-519-4471 if calling within the United States or 973-341-3080 if calling internationally. Please use pass code 7734006 for the replay.
This call is being webcast by ViaVid Broadcasting and can be accessed at Cordia's website at http://www.cordiacorp.com. The webcast may also be accessed at ViaVid's website at www.viavid.com. The webcast can be accessed through October 31, 2006 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: www.microsoft.com/windows/windowsmedia/en/download/default.asp.
About Cordia Corporation
Cordia Corporation, through its operating subsidiaries, Cordia Communications Corp. and CordiaIP Corp., offers business, residential, and wholesale customers local and long distance telecommunications services utilizing traditional wireline and VoIP technologies. In addition, Cordia develops and provides a suite of proprietary web-based billing software and outsourced services to local, long distance and VoIP telecommunications providers.
Safe Harbor
This release contains forward-looking statements that involve risks and uncertainties. Cordia'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, availability of management; availability, terms, and deployment of capital; Cordia's ability to successfully market its services to current and new customers, generate customer demand for its product and services in the geographical areas in which Cordia can operate, access new markets, all in a timely manner, at reasonable cost and on satisfactory terms and conditions, as well as regulatory, legislative and judicial developments that could cause actual results to vary in such forward-looking statements.
