NEW YORK, May 15, 2017 /PRNewswire/ -- Pareteum
Corporation (NYSE MKT: TEUM) ("Pareteum" or the "Company"),
a leading communications technology provider to global Mobile,
MVNO, Enterprise and IoT markets, today announced financial results
for the first quarter ended March 31,
2017.
First Quarter 2017 Highlights:
- The Company significantly expanded the technical capabilities
of its Global Mobility Cloud Platform, adding advanced messaging
functionality supporting the adoption of Internet of Things (IoT)
devices and the deployment of data-rich broadband 4G services for
Mobile Virtual Network Operators (MVNOs) customers through a new
engagement contract from Vodafone. These developments will enable
the Company and its communications service provider customers the
ability to more easily scale their businesses globally, reaching
new customer segments while delivering valuable service
offerings.
- During the quarter, the Company attracted several accomplished
industry veterans to the team, bringing valuable expertise and a
wide ranging global network of high-level relationships to the
firm. Key additions in the quarter include the appointments of
Ted O'Donnell as Chief Financial
Officer, Chris Hills as Vice
President of Global Connectivity, Nick
Barter as VP of EMEA and Luis Jimenez-Tuñon, Former CEO of
Vodafone Enabler Spain S.L., as a new independent director.
- Added Pronto Telecommunications, a converged voice and data
applications solution provider serving Telcos, ISPs, and Cable
Operators as a new resale partner providing international IoT
services to customers and entered a technology integration and
revenue sharing partnership with AirFox for its service enablement
platform. AirFox's technology allows Pareteum's Mobile Network
Operators (MNOs) and Mobile Virtual Network Operator (MVNO)
customers to rapidly and cost-effectively create new business
models and revenue streams through flexible application plans and
mobile advertising.
- Demonstrating confidence in the inherent value of the business,
during the quarter members of management and select directors
participated in a series of common stock purchase transactions
including a private transaction as well as individual open market
stock purchases made under Form 4.
"Our business performed as expected in the first quarter and it
is now our plan to support future growth while maintaining the
disciplined financial stewardship that has facilitated our business
turnaround. We continue to see the potential for our solutions in
the market driven by an increasingly connected wireless world and
our goal is to work with our growing list of customers and partners
to achieve our vision," said Hal
Turner, Executive Chairman of Pareteum.
First Quarter 2017 Financial Highlights:
- Reported Q1 2017 revenue of approximately $2.8 million compared to $3.3 million last year, the decrease being due to
the divestiture of the ValidSoft subsidiary and clients seasonal
churn.
- Gross margins increased from 66% to 70% on a comparative basis
during the quarters ending March 31,
2016 and 2017, respectively, due to a reduction of direct
costs during 2016.
- Operating expenses for the period of $4.8 million, decreased 37% from $7.5 million last year as a result of the
company-wide restructuring program implemented throughout
2016.
- Loss from operations improved by 53% to ($1.9) million for the quarter compared to
($4.3) million in 2016
- Net Loss per weighted common share of ($0.14) for the quarter improved by 79% from
($0.66) in 2016.
- Adjusted EBITDA in the quarter was ($198,000), reflecting a 91% improvement from the
negative EBITDA of ($2.1) million
reported last year.
Mr. Turner concluded, "As we navigate Pareteum through the
coming months and years, we have bold expectations for growth in
all of our service suites, driven by the advancing technical
capabilities of our software as a service platform coupled with our
strong and growing team. Pareteum is well positioned to capitalize
on the global trends driving the connected world which will create
value for both our customers and shareholders."
Conference Call
Information:
|
|
Date:
|
Monday, May 15,
2017
|
Time:
|
4:30 p.m.
EDT
|
Domestic Dial-in
Number:
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1-888-430-8691
|
International Dial-in
Number:
|
1-719-325-2170
|
U.K. Toll
Free:
|
0 808 101
1147
|
Live
webcast:
|
http://public.viavid.com/index.php?id=124441
|
All interested participants should dial in approximately 5 to 10
minutes prior to the 4:30 p.m. EDT
conference call and an operator will register your name and
organization.
A replay of the call will be available approximately one hour
after the end of the call through May 15,
2018, and can be accessed at
http://public.viavid.com/index.php?id=124441.
About Pareteum Corporation:
Pareteum Corporation and
its subsidiaries provide a complete mobility cloud platform,
utilizing messaging and security capabilities for the global
Mobile, MVNO, Enterprise, Software-as-a-Service and IoT markets.
The Company's software solutions allow any organization to harness
the power of a wirelessly connected world by delivering seamless
connectivity and subscriber management capabilities that provides
end-to-end control of millions of connected devices. Mobile Network
Operator (MNO) customers include Vodafone, the world's second
largest mobile operator by customer count, Zain, one of the largest
mobile operators in the Middle
East, as well as MVNO customers such as Lebara and Lowi. For
more information please visit: www.pareteum.com.
Forward-Looking Statements:
Certain statements
contained herein constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements may include, without limitation, statements with
respect to Pareteum's plans and objectives, projections,
expectations and intentions. These forward-looking statements are
based on current expectations, estimates and projections about
Pareteum's industry, management's beliefs and certain assumptions
made by management. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance
and are subject to certain risks, uncertainties and assumptions
that are difficult to predict. Because such statements involve
risks and uncertainties, the actual results and performance of
Pareteum may differ materially from the results expressed or
implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Unless otherwise required by law,
Pareteum also disclaims any obligation to update its view of any
such risks or uncertainties or to announce publicly the result of
any revisions to the forward-looking statements made here.
Additional information concerning certain risks and uncertainties
that could cause actual results to differ materially from those
projected or suggested in Pareteum's filings with the Securities
and Exchange Commission, copies of which are available from the SEC
or may be obtained upon request from Pareteum.
Discussion of Non-GAAP Financial Measures:
Pareteum's
management believes that the non-GAAP measures of (1) "EBITDA" and
(2) "Adjusted EBITDA" enhance an investor's understanding of
Pareteum's financial and operating performance by presenting (i) a
focus on core operating performance and (ii) comparable financial
results over various periods. Pareteum 's management uses
these financial measures for strategic decision making, forecasting
future financial results and operating performance. The
presentation of non-GAAP ("Generally Accepted Accounting
Principles") financial information is not intended to be considered
in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
EBITDA and Adjusted EBITDA Definition:
"EBITDA" is a
non-GAAP measure defined as earnings before interest, taxes,
depreciation and amortization. "Adjusted EBITDA" is a non-GAAP
measure defined by Pareteum as "EBITDA" excluding stock based
compensation, restructuring charges, nonrecurring expenditures and
certain software and non-cash adjustments made during the 2016
restructuring that are not applicable in 2017.
Shareholder Contact:
Steve Gersten
(813)
926-8920
steve.gersten@pareteum.com
PARETEUM
CORPORATION AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
(In thousands except
for per share amounts)
|
|
Three Month Period
Ended
|
|
March
31,
|
|
March
31,
|
|
2017
|
|
2016
|
|
|
|
|
REVENUES
|
$
2,795
|
|
$
3,274
|
|
|
|
|
COST AND OPERATING
EXPENSES
|
|
|
|
Cost of
service
|
842
|
|
1,126
|
Product
development
|
285
|
|
1,290
|
Sales and
marketing
|
319
|
|
542
|
General and
administrative
|
2,365
|
|
2,856
|
Restructuring
charges
|
129
|
|
638
|
Depreciation and
amortization of intangibles assets
|
844
|
|
1,098
|
Total cost and
operating expenses
|
4,784
|
|
7,549
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,990)
|
|
(4,275)
|
|
|
|
|
Total other income
(expense)
|
698
|
|
(28)
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(1,292)
|
|
(4,304)
|
Provision for income
taxes
|
1
|
|
10
|
NET LOSS
|
(1,293)
|
|
(4,314)
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
Foreign currency
translation (loss) gain
|
(27)
|
|
341
|
COMPREHENSIVE
LOSS
|
$
(1,320)
|
|
$
(3,973)
|
|
|
|
|
Net loss per common
share
|
$
(0.14)
|
|
$
(0.66)
|
|
|
|
|
Weighted average
shares - basic
|
9,322
|
|
6,516
|
|
|
|
|
Non-GAAP
Reconciliation
|
Three Month Period
Ended
|
|
March
31,
|
|
March
31,
|
|
2017
|
|
2016
|
|
|
|
|
NET LOSS
|
$
(1,293)
|
|
$
(4,314)
|
|
|
|
|
Total interest and
other income (expense)
|
(698)
|
|
28
|
Depreciation and
amortization
|
844
|
|
1,098
|
Provision for income
taxes
|
1
|
|
10
|
|
|
|
|
EBITDA
|
(1,146)
|
|
(3,178)
|
|
|
|
|
Restructuring
costs
|
130
|
|
638
|
Stock based
compensation
|
818
|
|
944
|
Software and non-cash
based adjustments
|
|
|
(493)
|
|
|
|
|
Adjusted
EBITDA
|
$
(198)
|
|
$
(2,089)
|
PARETEUM
CORPORATION AND SUBSIDIARIES
|
UNAUDITED CONDENSED
COSOLIDATED BALANCE SHEET INFORMATION
|
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,409
|
|
$
931
|
Restricted
cash
|
|
670
|
|
564
|
Accounts
receivable
|
|
617
|
|
615
|
Prepaid expenses and
other current assets
|
|
1,162
|
|
1,085
|
Total current
assets
|
|
3,858
|
|
3,195
|
Total
assets
|
|
13,101
|
|
13,045
|
|
|
|
|
|
Total current
liabilities
|
|
12,571
|
|
13,293
|
Total
liabilities
|
|
16,338
|
|
22,410
|
Total stockholders'
equity
|
|
(3,237)
|
|
(9,365)
|
PARETEUM
CORPORATION AND SUBSIDIARIES
|
UNAUDITED CONDENSED
COSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
$
(1,238)1
|
|
$
(1,912)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
(31)
|
|
(316)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
1,632
|
|
2,183
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
221
|
|
85
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
584
|
|
40
|
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visit:http://www.prnewswire.com/news-releases/pareteum-reports-first-quarter-2017-financial-results-300457791.html
SOURCE Pareteum Corporation