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

ELEC News eLEC Reports Third Quarter Results

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--eLEC Communications Corp. (OTCBB:ELEC), a wholesale and retail communications provider that offers standard wireline and VoIP telephone services, announced results for the third quarter ended August 31, 2006.

eLEC reported a net loss for the quarter of ($437,513), or ($0.03) per share, compared to a net loss of ($257,140), or ($0.02) per share, for the same quarter last year. As planned, revenue for the three-month period ended August 31, 2006 decreased 53% to $1,949,040 as the company shifted its strategic focus and resources away from its traditional wireline phone business (CLEC) and towards the successful roll-out of its award winning VoIP offering.

eLEC’s CEO, Paul Riss, noted, “We continue to aggressively partner with companies who are looking for a VoIP solution. We recently completed eight weeks of extensive testing with the communications provider for one of the largest restaurant chains in the US, which is now taking our VoIP service for a live beta test in several of its stores with the intention of replacing its existing wireline telephone service in thousands of its locations. We have also received our first purchase order from a major electronics retailer that plans to sell our product alongside the Vonage product it is currently selling. We have visited the stores and trained its sales associates and are looking for a product launch in early November.”

Riss continued, “We are very proud that our product will now be one of the few VoIP offerings on a retail shelf, and we are confident 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. We now have more than 40 wholesale customers signed up for our VoIP offering, and are encouraged that in the last two months 27 additional service providers and cable carriers have approached us for a VoIP solution and are currently testing our product.”

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 August 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.