Company schedules conference call to provide progress update
LONDON, ENGLAND – August 15, 2011 – Voiceserve, Inc. (OTC BB: VSRV), a low-cost, next-generation Internet Telephony software and service provider, today reported financial results for its first fiscal quarter ended June 30, 2011. During the first quarter of its 2012 fiscal year, Voiceserve expanded beyond its original wholesale/retail business and signed its first international commercial contracts, released an advanced version of its mobile dialers enabling HD quality video calls and completed a private placement of its common stock, the proceeds from which were used to increase its sales, marketing and engineering staffs.
The Company reported revenues of $1.2 million for the first quarter of its fiscal year 2012, a 9.2 percent increase over for the same period of the previous fiscal year and an increase of 14.6 percent over the fourth quarter of fiscal year 2011. During the first quarter, the Company completed the installation of software pursuit to its first commercial contract with Saudi Arabia’s largest mobile carrier and signed a license engagement with a second mobile carrier valued at $214,000. Although the installation of software pursuit to the second engagement was nearly completed during the first quarter, the Company will not begin to recognize its revenue until the second quarter. Both engagements include annual, recurring maintenance and subscriber revenue components. Voiceserve anticipates revenue growth to accelerate during the remainder of the year as its list of commercial contracts continues to increase.
The Company reported a net loss of $(1.1) million or $(0.03) per basic share, for the first quarter, which includes $46,000 of expenses related to the capital raises completed during the first quarter and non-cash, mark-to-market pricing of its common stock derivatives and non-cash restricted stock-based compensation totaling of $1,019,000. Exclusive of these items, the Company generated a net loss of $(69,000). This compares to a net income of $126,000 for the first quarter of fiscal year 2011, and a net loss of $(263,000) or $(0.01) per basic share for the fourth quarter of fiscal year 2011.
For the three months ended June 30, 2011, Voiceserve’s gross profit on revenue was $436,000, yielding gross margins of 37 percent. This compares to average gross margin of 58 percent during the previous fiscal year and 40 percent in the prior sequential fourth quarter. The Company’s cost-of-goods-sold is primarily comprised of staff expenses of its technical group, which includes research and development costs. During the quarter, the Company added engineers and sales-engineers to its technical staff, which increased the costs. As revenue generated from the additional staff are recognized, the Company expects its gross margin to increase.
The following information was filed by Voiceserve Inc (VSRV) on Wednesday, August 24, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: VSRV CIK: 1353505 Form Type:10-Q Quarterly Report Accession Number: 0001213900-11-006008 Submitted to the SEC: Mon Nov 14 2011 1:55:12 PM EST Accepted by the SEC: Mon Nov 14 2011 Period: Friday, September 30, 2011 Industry: Telephone Communications No Radiotelephone