LIMERICK, IRELAND--(Marketwired - May 16, 2016) - One Horizon Group, Inc. (NASDAQ: OHGI), a leading carrier-grade VoIP solution for mobile providers and smartphones, today announced its financial results for the first quarter ended March 31, 2016.
Brian Collins, CEO of One Horizon Group, stated, "Our patented VoIP technology is fundamentally disrupting the international mobile telecommunications market with a value-add for not only subscribers, but also for our network operator partners. Our B2C application in China has exceeded our expectations, doubling revenue sequentially and surpassing our 2-year target with 17 Million subscribers at the end of the 2016 first quarter. Overall, our operations during the first quarter improved to be approximately cash flow neutral as we were able to become more efficient operationally while continuing to improve our cash collections from customers. With the continued roll out of our technology with leading network operators, such as we have in the Philippines, we anticipate revenue growth and cash flow to continue to improve."
Operational Highlights:
The Company's B2C mobile VoIP application in China, Aishuo, doubled revenue sequentially to approximately $60,000 during the first quarter of 2016.
The Company exceeded its two-year target of 15 million subscribers to grow to 17 million as of March 31, 2016.
Launched 'Roam Like Home', offering subscribers a low cost roaming option and network operators the ability to provide their traveling subscribers with a cost-effective prepaid offering.
'Roam Like Home' went live in the Philippines with Smart Communications, a leading mobile network operator.
Campaign with Smart Communications is in soft launch through the rest of May with full marketing launch to begin in June.
Financial Highlights for the Period Ended March 31, 2015:
Revenue for the 2016 first quarter totaled $609,000 as compared to $745,000 for the same period the year prior. The decrease was primarily due to a reduction in legacy Business to Business ("B2B") revenue. The Business to Business ("B2B") business continues, however no new global exchanges were sold in the quarter. Revenue from Aishuo totaled $60,000 during the quarter and the Company has begun generating revenue from its Roam Like Home program.
Gross profit excluding amortization of software development costs, for the three months ended March 31, 2016 was approximately $583,000 as compared to $684,000 for the three months ended March 31, 2015, a decrease of approximately 14.8%.
Operating expenses, including general and administrative expenses, depreciation and research and development were approximately $1,167,000 and $1,105,000 during the three months ended March 31, 2016 and 2015, respectively. Going forward, management does not expect operating costs to rise significantly until revenue related to the increase of end users grows significantly.
Net Loss for the 2016 first quarter was approximately $1,258,000 as compared to net loss of approximately $938,000 for the same period in 2015. The increased loss was partly due to the reduced revenue the company is experiencing while it is repositioning its growth strategy, while also adding additional research and development expenses associated with the new strategy.
Net cash used in operating activities was approximately $121,000 for the 2016 first quarter as compared to net cash used in operating activities of approximately $577,000 for the same period in 2015. The decrease in cash used in operations was primarily due to the increase in cash collected from customers during the three months ended March 31, 2016 as compared to the same period in 2015.
The company had $1,583,000 in cash as of March 31, 2016. Total assets were $14,943,000 and total liabilities $5,829,000 yielding total shareholders' equity of $9,114,000.
About One Horizon Group, Inc.
AI
