TORONTO – Telecom provider Telehop Communications recorded a $1.3 million net loss for 2008.
Revenue for the year ending December 31, 2008 was down 9% to $16.4 million, compared to revenue of $17.9 million for 2007, which the company said is attributable to a reduction in its retail and wholesale long-distance business.
Gross margin as a percentage of revenue decreased 3.9% for the year, from 41.3% in 2007 to 37.4%, which the company’s press release explained was as a result of “the competitive nature of our industry” (Telehop said it reduced rates and lines of business in certain markets to remain competitive, but was unable to reduce costs at the same time).
The company’s operating expenses reportedly jumped 14% for the year.
"During fiscal 2008 we dealt with the potential sale of our company and an unsolicited take over bid, which contributed to the increase in expenses and had a negative impact on operations for the year," said Hersh Spiegelman, president and CEO, in the release. "However, we also completed a strategic review of our operations producing a number of very key strategic initiatives which we believe will be instrumental in allowing us to return to profitability."
