Message #34 From:
NewsBot Date: July 17, 2006 08:09:00 AM
ELEC News eLEC Reports Second Quarter Results
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--July 17, 2006--eLEC Communications Corp. (OTCBB:ELEC), a wholesale and retail communications provider that offers standard wireline and VoIP telephone services, announced results for the second quarter ended May 31, 2006.
eLEC reported a loss from operations for the second quarter ended May 31, 2006 of ($584,075), as compared to a loss from operations of ($1,131,721) for the same quarter last year. The net loss for the quarter was ($647,941), or ($0.04) per share, compared to a net loss of ($1,235,060), or ($0.07) per share for the same quarter last year. Revenue for the three-month period ended May 31, 2006 decreased to $2,156,000.
eLEC's CEO, Paul Riss, noted, "We continue to aggressively partner with companies who are looking for a VoIP wholesale solution. We now have 30 wholesale customers and are in negotiations with more than 40 additional potential customers. The diverse nature and high quality of our customer base is a testament to the flexibility of our platform and the ubiquitous reach that VoIP is beginning to obtain. We are attracting wireless broadband carriers, cable carriers, CLECs, ISPs, ASPs and various resellers, all who need a reliable and high quality VoIP solution. As expected, our CLEC lines continue to experience attrition at a rate of approximately 500 lines a month. However, this month, new VoIP lines will exceed the number of deactivated CLEC lines. We already have 1,060 new VoIP lines in the month of July."
Riss continued, "We believe our VoIP wholesale strategy, which leverages the sales and marketing resources, capital, and built-in customer base of our wholesale partners, provides an attractive long-term strategy to efficiently scale a high margin, profitable business. Our vertically-integrated VoIP platform offers carriers and resellers a one-stop single vendor VoIP solution that requires no capital expenditures on their part. Many of these wholesale accounts appreciate our ability to customize our VoIP platform for their individual needs and roll it out to them in less than 30 days."
Complete details of eLEC's results of operations can be found in the company's Quarterly Report on Form 10-Q for the quarterly period ended May 31, 2006, which has been filed with the Securities and Exchange Commission.
About eLEC Communications
eLEC Communications Corp., headquartered in White Plains, NY, is a communication services holding company that is taking advantage of the convergence of the technological and regulatory developments in the Internet and telecommunications markets. eLEC's wholly-owned subsidiaries provide an integrated suite of communications services to business and residential customers, including local, long distance, dedicated access and VoIP. For more information, visit www.elec.net.
This release contains forward-looking statements that involve risks and uncertainties. eLEC'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 eLEC's Annual Report on Form 10-K for the year ended November 30, 2005 and any subsequent SEC filings.
