Message #4 From:
Stock News Bot Date: February 3, 2008 07:23:59 AM
Rapid Link Announces Fiscal Year 2007 Financial Highlights
Revenues
of Over $17 Million, Positive Cash Flow From Operations of Over $650
Thousand, and Gross Profit of $4.7 Million; Rapid Link Reaches
Profitability Goals in Line With Management's Expectations
Rapid Link, Inc. (OTCBB: RPID), one of the
leading providers of diversified communications services to certain niche
markets, announced financial results for its fiscal year ended October 31,
2007.
FISCAL YEAR 2007 HIGHLIGHTS
-- Revenues increased $4 million to $17,326,035, or 30%, as compared to fiscal 2006.
-- Gross profit increased to over $4.7 million, or 29%, as compared to fiscal 2006; general and administrative expenses decreased $192,000, or 5%, as compared to fiscal 2006.
-- $659,000 of positive operating cash flow generated and net income positive in 4th quarter.
Year Ended October 31, ---------------------------------- 2007 2006 -------------- --------------
Total Revenue $ 17,326,035 $ 13,351,030 Gross Profit $ 4,766,130 $ 3,706,795 Operating Cash Flow $ 659,136 $ (1,035,323) Net loss excluding non-cash items $ (13,031) $ (1,023,963)
With over 15,000 customers worldwide and approximately $20 million in
run-rate revenues, Rapid Link is poised to grow with technologies, further
serve our customer base of customers and expand into new markets. We have
fully integrated Telenational Communications into our operations, and
recently completed the asset purchase of Web-Breeze Networks and
Communications Advantage, which include a wireless broadband network.
"Our goal is to provide the best overall communications experience, to both
business and residential customers at affordable prices. Whether it's a
digital phone call, or merely surfing the internet, we strive to provide
the best service available," said John Jenkins, Rapid Link's Chairman and
Chief Executive Officer. Mr. Jenkins further stated, "Rapid Link continues
to improve its fundamentals and remains focused on maintaining
profitability, increasing revenues and expanding Rapid Link's bundle of
service offerings." "Rapid Link revenues have shown tremendous growth over
the past fiscal year, while also meeting management's profitability goals
as a result of acquisition integrations and cost reductions," stated Chris
Canfield, Rapid Link's President and Chief Financial Officer.
Excluding non-cash items, net loss to common stockholders for the year
ended October 31, 2007 was $13,031 vs. a net loss to common stockholders of
$1,023,963 for the previous year ended October 31, 2006, representing over
a $1 million improvement. For fiscal year 2007, Rapid Link incurred
$1,076,350 in non-cash interest expense. Additional non-cash items
incurred during the year include depreciation and amortization expense,
share-based compensation expense, bad debt expense, partially offset by a
gain on legal settlements.
Net loss before non-cash items is not a term defined by generally accepted
accounting principles (GAAP) and may not be comparable to other similarly
titled measurements used by other companies. Such non-GAAP measures should
be considered in addition to, and not as a substitute for, performance
measures calculated in accordance with GAAP. The accompanying table
includes a detailed reconciliation of net loss reported in accordance with
GAAP to net loss before non-cash items.
