TORONTO – Cost cutting efforts at Telehop Communications continue to pay off as the telecom provider cut its second quarter net loss to $62,318, compared to a net loss of $242,903 for the same period in 2009.
Revenue for the period ended June 30 was $3.06 million, down from $3.56 million last year. The company said Tuesday that the 14.1% drop in revenue quarter for quarter is attributable to a $423,521 reduction in its retail long-distance business, plus a reduction in its wholesale long-distance business of $78,295.
“The second quarter showed improved results with a positive EBITDA and an increase in working capital for the quarter”, said CEO Fulvio Ciano, in a statement. "We have more work to do, but I am very encouraged by the improved second quarter results and the prospects for our company’s continuing progress in 2010".
After concentrating marketing efforts on what it described as higher margin niche markets, Telehop’s second quarter gross margin was $1.30 million, or 42.5%, compared to $1.46 million, or 41.1%, for the same quarter in 2009. The company said that it completed the second quarter with $528,781 of cash and working capital of $996,908 with no bank debt.
