Message #18 From:
NewsBot Date: November 14, 2006 01:44:00 PM
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.
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30,
December 31,
2006
2005
ASSETS
(unaudited)
Current Assets
Cash and cash equivalents
$
417,561
$
944,840
Cash – restricted
981,103
1,401,058
Accounts receivable, less allowance for doubtful accounts of
$916,527 (2006) and $864,827 (2005)
4,041,978
5,992,833
Prepaid expenses
663,506
514,576
Accrued usage receivable
289,476
332,534
Deferred tax assets
341,595
278,000
TOTAL CURRENT ASSETS
6,735,219
9,463,841
Property and equipment, at cost
Office and computer equipment
1,278,047
787,809
Computer software
1,168,255
602,012
Leasehold Improvements
361,734
255,050
2,808,036
1,644,871
Less: Accumulated depreciation/amortization
991,970
354,430
NET PROPERTY AND EQUIPMENT
1,816,066
1,290,441
Other Assets
Goodwill
400,384
-
Security deposits and other assets
260,188
216,358
660,572
216,358
TOTAL ASSETS
$
9,211,857
$
10,970,640
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion, capital lease obligations
$
11,761
$
11,099
Accounts payable
2,423,970
2,708,784
Accrued expenses
3,997,643
4,260,304
Income taxes payable
55,799
109,000
Unearned income
1,078,806
1,161,562
Loans payable – other
-
57,000
TOTAL CURRENT LIABILITIES
7,567,979
8,307,749
Noncurrent Liabilities
Deferred rent
72,768
45,410
Deferred income taxes
99,171
9,000
Capital lease obligation, net of current
43,662
50,165
TOTAL NONCURRENT LIABILITIES
215,601
104,575
MINORITY INTEREST IN SUBSIDIARY
16,919
-
COMMITMENT AND CONTINGENCIES
Stockholders' Equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized,
707,800 (2006) and 797,800 (2005) shares issued and outstanding
708
798
Common stock, $0.001 par value; 100,000,000 shares authorized,
5,808,774 (2006) and 5,639,410 (2005) shares issued and outstanding
5,809
5,639
Additional paid-in capital
6,092,484
6,054,606
Comprehensive (loss)
(5,568)
-
Accumulated deficit
(4,576,282)
(3,406,729)
1,517,151
2,654,314
Less: Treasury stock, at cost, 187,594 (2006) and 177,694 (2005)
common shares
