« Previous | Next » | All Messages |  CORG Message Board Home | recommend post |  Ignore Poster

CORG News Cordia Corporation Announces Financial Results for the Third Quarter of 2006

WINTER GARDEN, Fla.--(BUSINESS WIRE)--Cordia Corporation (“Cordia”), (OTCBB: CORG), a global communications service provider announced the results of operations for the third quarter ended September 30, 2006.

Cordia reported revenues of approximately $8.5 million for the quarter ended September 30, 2006, compared to approximately $11.7 million in reported revenues for the quarter ended September 30, 2005. Revenues for the nine months ended September 30, 2006 were $27.8 million compared to $31 million for the same period ended in 2005.

Cordia reported a net loss of ($932,409), or $(0.17) per share (basic and diluted) for the third quarter of 2006, compared to a net income $458,502, or $0.10 per basic share and $0.07 per fully diluted share for the third quarter of 2005. Gross profit decreased to approximately $3.9 million for the quarter ended September 30, 2006 from approximately $5.7 million reported for the quarter ended September 30, 2005. Operating expenses, which included sales and marketing, provision for doubtful accounts, general and administrative expenses and depreciation decreased to approximately $4.9 million for the third quarter 2006 from approximately $5.3 million for the same period in 2005.

Joel Dupré, Chief Executive Officer of Cordia stated, “Our decline in revenue is the result of our stringent credit policies which has impeded Cordia Communications’ ability to acquire customers as quickly as we had in the past. As a result, our revenues declined Q-on-Q. We do not believe this trend is indicative of future performance. We believe our business has stabilized and we will see growth in the coming quarters as we expand our service offerings and target secondary consumers. Internationally we have launched our Magellan service in Hong Kong. This new service offers expatriates, international business executives, and international travelers, local telephone numbers from over 250 cities throughout forty (40) countries so they can be reached on their landline or mobile phone in Hong Kong or anywhere in the world. Currently, we are launching the US beta release of our Magellan service and look forward to offering this service in Latin America in the near future as well.”

Kevin Griffo, President of Cordia, commented, “Although management is disappointed with our quarterly loss, we are excited about the potential growth of our traditional wireline business recently announcing the extension of our contract with one of our two major network carriers. The extension of this agreement ensures that we will have continued access to the underlying carrier’s network for a period that is longer than originally anticipated and provides us with the incentive to actively promote our services in this territory. As a result, we are increasing sales and marketing efforts in the ten (10) states we currently serve and anticipate offering our services through Cordia Communications and My Tel Co in four (4) additional states over the course of the next year. To date, My Tel Co, which offers the same level of quality services and products as Cordia Communications, but targets the secondary consumer credit market, has been well received by consumers in the four (4) states where it offers services.”

“We are very enthusiastic about our proposed expansion plans,” continued Mr. Griffo, “we believe that our focus on sales and marketing will be beneficial in promoting all of our telecommunications service offerings and will result in increased revenues in future quarters.”

Conference Call Information

The conference call will take place at 11:00 a.m. Eastern, on Thursday, November 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 November 30, 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 8092579 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.net. The webcast can be accessed through December 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., CordiaIP Corp., and Cordia International Corp., offers business, residential and wholesale customers local and long distance telecommunications services in more than sixty (60) countries utilizing traditional wireline and Voice over Internet Protocol ("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.