MISSISSAUGA, – Phonetime, a supplier of international long distance telecommunication products and services reports sales increased by 71% in the second quarter to $39.3 million, up from $23 million in 2007. Net income was $734,000 compared to a net loss of $473,000 in second quarter of 2007.
Phonetime attributes the growth primarily to higher sales volumes of the company’s wholesale division, which buys and resells telecommunications long-distance services to telephone carriers around the world using Phonetime’s proprietary call trading platform. Phonetime also generates revenues through its retail division, which provides pre-paid calling cards and long-distance services to targeted ethnic consumer groups.
In the second quarter ending June 30, 2008 the company also paid down $1.2 million of long-term debt and other loans payable related to the Symphony acquisition. It launched a new point of presence in Los Angeles, enabling its U.S.-based carrier customers to streamline connectivity to Philippines, Malaysia, Hong Kong and other Pacific Rim countries. It also processed approximately 1.4 billion minutes of long-distance calls.
"Our strong second quarter results provide further validation that our strategy to diversify our operations, expand our wholesale activities internationally, and prudently invest in network infrastructure is working," said Wayne Silver, president and CEO of Phonetime Inc.
"Since the start of the year, we have improved the key performance metrics of our wholesale and retail divisions, including sales, gross margins, net income, account receivables, customer wins and call volumes. We expect this steady growth to continue for the balance of 2008 based on the increasing demand for our telecommunications services, particularly within emerging markets in Asia, Africa and South America. We expect this trend to continue in Q3 as we have just completed our most profitable month ever in July."
