TORONTO – Telehop’s struggles continue after it reporting a second quarter net loss more than double that recorded in the same period last year.
The long distance provider said that despite revenues of $2.65 million for the quarter ended June 30th, its net loss was $149,901, compared with $62,991 in 2010. Its gross margin was $1.17 million, or 44.3% compared to $1.30 million or 42.5% for the same quarter last year.
During the first half of 2011, Telehop’s financials reflected the following non-operational and non-recurring events:
– Increased costs in the amount of $71,618 as a result of a dissident shareholder proxy challenge;
– Incurred $14,730 in duplicate CEO salaries during the management transition period;
– Obligations paid to the estate of its founder in the amount of $132,692; and
– Incurred $86,585 in losses around the launch of its prepaid calling card.
Without these additional costs, Telehop said that its year-to-date loss would have been $134,947, a 21.1% ($36,096) improvement compared to the second quarter of 2010.
“With new management engaged, and moving into the third and fourth quarter, the company’s focus will be to continue to grow and drive sales of subscription services, namely long distance, VoIP home phone, and high speed Internet”, Telehop wrote in a statement. “The strategy is to aggressively expand the company’s network of agents including ethnic market agents, individual sales agents, retail agents, and telemarketing agents. Furthermore, the company will continue to dedicate focus on the Research & Development of new products and services for launch in 2012.”
