TORONTO – Telehop Communications (in the market as 10-10-620 and others)showed declining revenue and income in the first half of 2007.
The company’s revenue for the six months ended June 30, 2007 of $9.6 million represented a decrease of approximately 5.7% over the same period in 2006. Long distance is a skinny-margin business and Telehop must rely on a constant marketing push, meaning total operating expenses as a percentage of revenues for the six months ended June 30th remained consistent at 92% compared to ’06. Net income for the first half was $451,814, compared to $483,785 for the same period in 2006.
Revenues for the second quarter ended June 30, 2007 were $4.6 million a decrease of 10.4% compared with $5.1 million in the comparable quarter in 2006. Net income for the second quarter was $255,499, a slight increase over Q2 2006
"The company maintains its strength in its balance sheet, and working capital at June 30, 2007 increased 15.2% to $3,603,103 from $3,126,904 at December 31, 2006. Telehop’s cash and equivalents at June 30, 2007 improved to $2,924,751 from $2,778,664 at December 31, 2006, after paying out its first cash dividend in January 2007. Telehop’s operations continue to be entirely funded by cash flow from operations, and the company has no outstanding bank or other debt," says the press release.
"In the first half of 2007, we were able to continue to generate stable earnings and have continued to strengthen our working capital position. As we announced recently, we are actively evaluating alternatives for the company, which could involve mergers and/or acquisitions with other entities in order to improve the business and shareholder value. We will, however, continue to build our subscriber base and focus on the development of innovative solutions," said Ruth Bartholomeusz, president and COO, in the press release.
