|By Marketwired .||
|May 12, 2014 07:09 PM EDT||
PHILADELPHIA, PA -- (Marketwired) -- 05/12/14 -- Alteva, Inc. ("Alteva" or the "Company") (NYSE MKT: ALTV), a premier provider of hosted Unified-Communications-as-a-Service ("UCaaS"), today announced selected financial results for the first quarter ended March 31, 2014.
First Quarter 2014 Financial Results Highlights
- For the first quarter of 2014, the Company achieved Adjusted EBITDA* of $1.2 million, an improvement from $1.0 million from the same period in 2013; Adjusted EBITDA* included $2.0 million and $3.25 million of income from the Company's O-P investment for the first quarters of 2014 and 2013 respectively;
- The Company narrowed its operating loss for the first quarter of 2014 to $(2.2) million, as compared to $(4.3) million for the same period in 2013;
- The Company narrowed its net loss for the first quarter of 2014 to $(0.2) million, as compared to $(0.7) million for the same period in 2013;
- For the first quarter of 2014, UC revenues increased by 7%, which includes the results of the Syracuse, NY operations that were sold in September 2013, to $4.2 million from $4.0 million for the first quarter of 2013; excluding the Syracuse operations, UC revenues increased 23% for the first quarter of 2014 as compared to the same period in 2013;
- At the end of the first quarter 2014, there were over 40,000 users on Alteva's hosted platform, which represents an increase of 23% of the installed base compared to the end of first quarter 2013; excluding the seats associated with the divested Syracuse operations, users on Alteva's hosted platform increased 38%;
- Gross profit margin increased to 59% in the first quarter of 2014 from 51% for the same period in 2013;
- The Company continues to invest in its UCaaS platform technologies while strengthening its financial position; accordingly the Company has made enhancements to its service offerings to add new mobile applications that seamlessly integrate Alteva's HD voice with Microsoft's Lync Communication services, Google Apps for Business and leading cloud-based CRM applications like Salesforce.com;
- The Company intends to continue its focus on profitable growth and we expect Adjusted EBITDA* to improve with rationalization of the business model, focused channel growth and business development.
First Quarter 2014 Results
Revenues were $7.5 million in the first quarter of 2014, a decrease of 3% from $7.7 million for the same period in 2013. Revenues increased 5% year-over-year excluding the revenue from the Syracuse operations that were sold in September 2013.
UC revenues were $4.2 million in the first quarter of 2014, an increase of 5% from $4.0 million for the same period in 2013. UC revenues in the first quarter of 2014 increased 23% on a year-over-year basis excluding the revenue from the Syracuse operations, and improved by 8% from the fourth quarter of 2013 on a similar comparison. As a percentage of consolidated revenue, the UC segment contributed approximately 56% of revenues in the first quarter of 2014 as compared with 51% for the same period in 2013. The increase in UC revenues was attributable to the addition of new clients and the increase in services to existing clients. Approximately 86% of first quarter UC revenues were from licenses and services which are expected to be recurring in nature, with the balance of revenues derived from equipment sales for UC customer implementations.
Telephone revenues were $3.3 million in the first quarter of 2014, as compared with $3.8 million for the same period in 2013. The Telephone segment contributed approximately 44% of revenues in the first quarter 2014 as compared with 49% for the same period of 2013. Telephone revenues were slightly lower year-over-year as a result of continued access line losses and decreases in revenue from pooling arrangements. These decreases were partially offset by an increase in access line rates earlier in the year and modest growth in broadband Internet services revenues.
Gross profit increased by 13% to $4.5 million in the first quarter of 2014 from $4.0 million for the same period in 2013. Gross profit as a percentage of revenues was 59% in the first quarter 2014, as compared with 51% for the same period in 2013. The improvement in gross profit primarily reflects the increase in revenues contributed by the UC segment and the Company's ability to leverage its existing infrastructure, and impact of the cost reduction initiatives, which included the sale of the Syracuse operations, and the previously disclosed workforce reduction in the Telephone segment.
Selling, general and administrative ("SG&A") expenses in the first quarter of 2014 were $5.8 million, as compared with $7.2 million for the same period in 2013. The $1.4 million, or 19%, decrease in SG&A expenses was primarily associated with a reduction in wages, including the impact from the restructuring of the Telephone segment in the second quarter of 2013, the sale of the Syracuse operations, severance charges in the first quarter of 2013, and other expense management initiatives implemented throughout the year.
Total other income for the first quarters of 2014 and 2013 was $1.9 million and $3.1 million, respectively. Other income included the income from the Company's equity investment in the O-P partnership in the first quarters of 2014 and 2013 of $2.0 million and $3.25 million, respectively. In 2013, the Company received guaranteed annual distributions of $13 million. In 2014, in accordance with to the O-P agreement, the guaranteed distribution levels stopped and the Company will receive income from the equity investment only for its ownership share of 8.108% of the O-P's net income.
For the first quarter of 2014, the Company had an income tax benefit of $58,000, or 19% of loss before income taxes, as compared to an income tax benefit of $0.5 million, or 43% of loss before income taxes, for the first quarter of 2013. The estimated effective tax rate for each period includes projections of tax expense on the expected change in our valuation allowance for deferred tax assets. The decrease in the effective tax rate is due to the expected increase in the valuation allowance for deferred tax assets reducing the overall tax benefit recorded for the period ended March 31, 2014.
For the first quarter of 2014, the Company's net loss was $(0.2) million, as compared to a net loss of $(0.7) million for the same period of 2013.
Basic and diluted net loss per share was $(0.04) for the first quarter of 2014, as compared with basic and diluted net loss per share of $(0.12) in the same period of the prior year.
On April 30, 2014, the Company announced that, in accordance with its previously announced plans, the Company has exercised the put option to sell its interest in the Orange County-Poughkeepsie Limited Partnership (the "O-P"). The gross proceeds of $50 million, which the Company received on April 30, 2014, will be used to pay taxes on the related gain, repay outstanding senior debt, fund working capital needs and support growth initiatives, including supporting Alteva's current customers and deploying solutions for new customers. After April 30, 2014, the Company will no longer have any interest in the O-P and will no longer receive any income from the O-P.
The Company will conduct a conference call to discuss first quarter results on Tuesday, May 13, 2014 at 10:00 a.m. eastern. Investors and other interested parties can listen to the call by dialing the participant number of 412-317-6789 or 877-317-6789 (toll free), no access code required, approximately 10 minutes prior to the start of the conference call. A simultaneous webcast of the conference call can be accessed through Alteva's website at www.alteva.com in the Investors section.
A replay of this conference call will also be available by dialing 412-317-0088 or 877-344-7529 (toll free), access code: 10045809, beginning 12:00 p.m. eastern on May 14, 2014 through 9:00 a.m. eastern June 4, 2014, and via the Company's website at www.alteva.com.
Alteva (NYSE MKT: ALTV) is a premier provider of hosted Unified-Communications-as-a-Service ("UCaaS") that significantly enhances business productivity and efficiency. Alteva's UCaaS solution integrates and optimizes best-in-class cloud-based technologies and business applications to deliver a comprehensive voice, video and collaboration service for the office and mobile workforce. Alteva is committed to delivering meaningful value to our customers through a consistent, high quality and unified user experience across multiple devices, platforms and operating systems. These attributes have positioned Alteva as a leading hosted communications provider and the partner of choice for a growing number of business customers nationwide and internationally. To learn more about Alteva, please visit www.alteva.com. You can also follow Alteva on Twitter @AltevaInc or LinkedIn.
*Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted to exclude non-cash stock-based compensation, severance related expense, and nonrecurring charges associated with the disposal of the Syracuse operations. A reconciliation of adjusted EBITDA to net income (loss) can be found at the end of the following tables. Adjusted EBITDA is commonly used by management and investors as an indicator of operating performance and liquidity. Adjusted EBITDA is not considered a measure of financial performance under GAAP and it should not be considered as an alternative to net income (loss), or other financial statement data presented in accordance with GAAP in our consolidated financial statements.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements, without limitation, regarding expectations, beliefs, intentions, growth, profitability, or strategies regarding the future. Alteva intends that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Alteva's actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: expectations of future profitability; general economic and business conditions, both nationally and in the geographic regions in which Alteva operates; industry capacity; demographic changes; technological changes and changes in consumer demand; the successful integration of Alteva's acquired businesses; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; legislative proposals relating to the businesses in which Alteva operates; competition; or the loss of any significant ability to attract and retain qualified personnel. Given these uncertainties, current and prospective investors should be cautioned in their reliance on such forward-looking statements. Except as required by law, Alteva disclaims any obligation to update any such factors or to publicly announce the results of any revision to any of the forward-looking statements contained herein to reflect future events or developments. A more comprehensive discussion of risks, uncertainties, financial reporting restatements, and forward-looking statements may be seen in Alteva's Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.
ALTEVA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share amounts) Three Months Ended March 31, ------------------------ 2014 2013 ----------- ----------- Operating revenues Unified Communications $ 4,211 $ 3,956 Telephone 3,313 3,784 ----------- ----------- Total operating revenues 7,524 7,740 Operating expenses Cost of services and products (exclusive of depreciation and amortization expense) 3,052 3,789 Selling, general and administration expenses 5,798 7,248 Depreciation and amortization 903 1,002 ----------- ----------- Total operating expenses 9,753 12,039 ----------- ----------- Operating loss (2,229) (4,299) Other income (expense) Interest expense (139) (236) Income from equity method investment 2,040 3,250 Other income, net 21 108 ----------- ----------- Total other income 1,922 3,122 ----------- ----------- Loss before income taxes (307) (1,177) Income tax benefit (58) (506) ----------- ----------- Net loss (249) (671) Preferred dividends 6 6 ----------- ----------- Loss applicable to common stock $ (255) $ (677) =========== =========== Basic loss per common share $ (0.04) $ (0.12) =========== =========== Diluted loss per common share $ (0.04) $ (0.12) =========== =========== Weighted average shares of common stock used to calculate loss per share: Basic (common) 6,161 5,751 =========== =========== Diluted (common) 6,161 5,751 =========== =========== ALTEVA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) March 31, December 31, 2014 2013 ------------ ------------ (Unaudited) Assets Current assets Cash and cash equivalents $ 259 $ 1,636 Trade accounts receivable - net of allowance for uncollectibles - $406 and $378 at March 31, 2014 and December 31, 2013, respectively 3,126 2,836 Other accounts receivable 557 480 Equity method investment 2,040 - Materials and supplies 225 237 Prepaid expenses 817 774 Prepaid income taxes 204 - Deferred income taxes 108 108 ------------ ------------ Total current assets 7,336 6,071 ------------ ------------ Property, plant and equipment, net 13,563 13,837 Intangibles, net 5,644 5,856 Seat licenses 1,736 1,749 Goodwill 9,006 9,006 Other assets 822 744 ------------ ------------ Total assets $ 38,107 $ 37,263 ============ ============ Liabilities and Shareholders' Equity Current liabilities Short-term debt $ 10,898 $ 10,126 Accounts payable 1,354 944 Advance billing and payments 334 341 Accrued taxes 1,203 1,692 Pension and post retirement benefit obligations 267 267 Other accrued expenses 4,200 3,934 ------------ ------------ Total current liabilities 18,256 17,304 ------------ ------------ Long-term debt 404 297 Deferred income taxes 711 649 Pension and post retirement benefit obligations 5,929 6,007 ------------ ------------ Total liabilities 25,300 24,257 ------------ ------------ Commitments and contingencies Shareholders' equity Preferred shares - $100 par value, authorized and issued shares of 5; $0.01 par value authorized and unissued shares of 10,000; 500 500 Common stock - $0.01 par value, authorized shares of 10,000 6,862 and 6,971 shares issued at March 31, 2014 and December 31, 2013, respectively 69 70 Treasury stock - at cost, 875 and 830 common shares at March 31, 2014 and December 31, 2013, respectively (8,010) (7,612) Additional paid in capital 13,586 13,279 Accumulated other comprehensive loss (1,288) (1,436) Retained earnings 7,950 8,205 ------------ ------------ Total shareholders' equity 12,807 13,006 ------------ ------------ Total liabilities and shareholders' equity $ 38,107 $ 37,263 ============ ============ ALTEVA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended March 31, ---------------------------- 2014 2013 ------------- ------------- CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (249) $ (671) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 903 1,002 Stock based compensation expense 306 218 Undistributed earnings from equity investment (2,040) - Distribution in excess of income from equity investments included in net loss - (1,424) Other non-cash operating activities 113 193 Changes in assets and liabilities Trade accounts receivable (290) 364 Other assets (473) (597) Accounts payable 410 144 Other accruals and liabilities (274) 1,331 ------------- ------------- Net cash (used in) provided by operating activities (1,594) 560 ------------- ------------- CASH FLOW FROM INVESTING ACTIVITIES Capital expenditures (48) (176) Proceeds from sale of assets 33 - Acquired intangibles - (58) Purchase of seat licenses - (194) Distribution in excess of income from equity investments - 1,424 ------------- ------------- Net cash (used in) provided by investing activities (15) 996 ------------- ------------- CASH FLOW FROM FINANCING ACTIVITIES Proceeds from debt 1,300 16,273 Repayment of debt and capital leases (664) (15,845) Payment of fees for acquisition of debt - (119) Purchase of treasury stock (398) (62) Dividends (Common and Preferred) (6) (1,670) ------------- ------------- Net cash provided by (used in) financing activities 232 (1,423) ------------- ------------- Net change in cash and cash equivalents (1,377) 133 Cash and cash equivalents at beginning of period 1,636 1,799 ------------- ------------- Cash and cash equivalents at end of period $ 259 $ 1,932 ============= ============= Supplemental disclosure of non-cash investing activities: Acquisition of equipment under capital leases $ 242 $ - Seat licenses acquired but not paid $ 114 $ - ALTEVA, INC. RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) AS IT IS PRESENTED ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands) Three Months Ended March 31, ---------------------------- 2014 2013 ------------- ------------- Net loss $ (249) $ (671) Depreciation and amortization 903 1,002 Stock-based compensation 306 218 Severance related charges 170 714 Interest expense, net 139 236 Income tax benefit (58) (506) ------------- ------------- Adjusted EBITDA $ 1,211 $ 993 ============= =============
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 10:00 PM EST Reads: 1,853
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
Dec. 19, 2014 08:00 PM EST Reads: 1,172
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
Dec. 19, 2014 07:00 PM EST Reads: 1,106
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Dec. 19, 2014 07:00 PM EST Reads: 1,826
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 06:00 PM EST Reads: 1,874
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
Dec. 19, 2014 04:45 PM EST Reads: 1,230
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Dec. 19, 2014 11:30 AM EST Reads: 2,925
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 11:00 AM EST Reads: 2,382
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Dec. 19, 2014 10:00 AM EST Reads: 2,552
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 09:00 AM EST Reads: 2,534
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Dec. 19, 2014 08:00 AM EST Reads: 2,447
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
Dec. 19, 2014 07:00 AM EST Reads: 2,746
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Dec. 19, 2014 06:30 AM EST Reads: 2,754
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Dec. 19, 2014 04:00 AM EST Reads: 2,306
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
Dec. 19, 2014 04:00 AM EST Reads: 2,457
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
Dec. 19, 2014 02:00 AM EST Reads: 2,615
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Dec. 18, 2014 09:45 PM EST Reads: 1,633
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 18, 2014 08:00 PM EST Reads: 1,903
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
Dec. 18, 2014 12:00 PM EST Reads: 1,795