TORONTO – Despite second quarter revenue of $3.5 million, Telehop reported a net loss of $243,000 for the quarter ended June 30, 2009.
The telecom provider also announced plans to undertake a “strategic initiative” which its says will help to increase the value of the company over the long term.
Revenue was $688,577 or 16.2% less quarter for quarter, which Telehop attributed to a reduction in its retail long-distance business of $628,542, and a reduction in its wholesale long-distance business of $60,035. Year to date revenue was $7,039,243 with a net loss of $573,607, compared to revenue of $8,621,861 and a net loss of $658,930 for the first six months of 2008.
Year to date gross margin increased by 3.1% to 39.3% over 2008, and “held firm” for the quarter. This is as a result of increased revenue per minute and lower direct costs due to a strengthening of the Canadian dollar relative to the US dollar, the press release said.
Operating expenses decreased 19.2% year over year, from $2.12 million in 2008 to $1.72 million, with the majority of the decrease relating to non-recurring one time charges which occurred in 2008.
Telehop completed the second quarter with $1.02 million of cash and working capital of $1.84 million with no bank debt.
