TORONTO – Telecom provider Telehop saw third quarter revenues return to the black, despite reductions in its retail and wholesale long-distance business.
Revenue for the quarter ended September 30, 2009 was $3.39 million with a net profit of $126,714, compared to revenue of $3.98 million and a net loss of $102,676 for the same quarter in 2008.
The company reported revenue of $597,528 or 15% less quarter for quarter, which it attributed to a $510,557 reduction in its retail long-distance business, and a $86,971reduction in its wholesale long-distance business.
TeleHop reported a gross margin of $1.75 million or 51.6% compared to a $1.63 million or 40.9% for the same quarter in 2008, as a result of increased revenue per minute and lower direct costs due to a strengthening of the Canadian dollar relative to the U.S. dollar.
Operating expenses dropped from $1.77 million in third quarter 2008 by $233,250 (13.1%) to $1.54 million. The majority of the decrease relates cost saving measures implemented this year, the company said in a statement.
In related news, Telehop has named Derek van der Plaat as an independent director of Telehop, subject to regulatory approval. He will fill the vacancy left on the board of directors by Hersh Spiegelman who passed away on October 29.
Van der Plaat is a co-founder of Puretracks Inc., the Canadian Internet radio and digital music solution provider, and currently leads DVP Capital Management Inc., a private investment and advisory firm.
