Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Problem with SNPK quote.
I can't seem to be able to get a quote using Interactive Brokers using this ticker symbol. I get a message stating "company not found". Anyone else having the same issue?? Thanks in advance.
True, it does create additional selling pressure. However, it should go higher......just not as fast as some would like ;)
MESA:
Imagine how this thing would be running if the lunch money flippers would lay off the BID a while. Oh well. They'll just be chasing it up more later.
I disagree. I think you can have your cake and eat it too in this case. I have a core holding in MESA at an average of about .205. I've also been flipping MESA all day a gain of approx. 4K profit. One hell of a lunch don't you think??
Huh??? Thought I did pick 5.....
My 5th pick was supposed to be Westwood. Guess I should type it in next time instead of just thinking it lol.
Woods, Kim, Mcllroy, Mahan, 278
VG should run again in the AM.
http://finance.yahoo.com/news/Vonages-Plan-of-Compliance-prnews-15045959.html?.v=1
Press Release Source: Vonage Holdings Corp.
Vonage's Plan of Compliance Accepted by the NYSE
On Monday April 27, 2009, 5:00 pm EDT
Buzz up! Print Related:Vonage Holdings Corporation
HOLMDEL, N.J., April 27 /PRNewswire-FirstCall/ -- Vonage Holdings Corp. (NYSE: VG - News), a leading provider of broadband telephone services, today announced that the New York Stock Exchange (the "NYSE") has accepted the Company's plan of compliance for continued listing on the NYSE. The plan, submitted on a confidential basis to the NYSE, included a discussion of the Company's operational and financial initiatives and the projected impact of these initiatives on the Company's results in 2009 and 2010. As a result of the plan acceptance, Vonage's common stock will continue to be listed on the NYSE. The Company will be subject to quarterly reviews by the NYSE to ensure progress toward its plan to restore compliance with continued listing standards.
Vonage (NYSE: VG - News) is a leading provider of broadband telephone services with 2.6 million subscriber lines. Our award-winning technology enables anyone to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. We offer feature-rich and cost-effective communication services that offer users an experience similar to traditional telephone services.
Our Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and popular features like call waiting, call forwarding and voicemail -- for one low, flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy, Wal-Mart Stores Inc. and Target and is available to customers in the U.S., Canada and the United Kingdom. For more information about Vonage's products and services, please visit http://www.vonage.com.
Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.
Axesstel Secures Initial Order for AxessGuardI Security Alarm Device
Launches First Machine-to-Machine Enterprise Solution Expand Its Product Portfolio Appealing to New Customers and an Existing Product Base of 3 Million Previously Sold Units
Tuesday January 6, 2009, 8:00 am EST
Yahoo! Buzz Print Related:Axesstel Inc.
SAN DIEGO--(BUSINESS WIRE)--Axesstel, Inc. (AMEX: AFT - News), a leader in the design and development of fixed wireless voice and broadband data products, launched its inaugural machine-to-machine (M2M) enterprise solution, the AxessGuard™I security alarm system that connects with fixed wireless phones or terminals to generate an alert via SMS (Short Message Service) or phone call in the event of a security breach. The company received its first order and product began to ship in the 2008 fourth quarter.
Clark Hickock, chief executive officer for Axesstel, said, “We continue to offer products that place Axesstel in the forefront with relevant fixed wireless telecommunications solutions. The AxessGuard™I is our initial M2M offering that provides an easy to install, cost effective security system for residences and businesses in either CDMA or GSM networks. It further diversifies our product portfolio with an M2M data solution and we believe AxessGuard™I is just the beginning of our entry into the M2M arena.”
“We are excited to have won our initial order from an existing Latin American customer and intend to market the security device to all of our regions worldwide. In addition to introducing this product to new customers, the over 3 million installed Axesstel phone and/or terminal device users provide a significant existing market opportunity, as they can enjoy the benefits of our security alarm system by purchasing the security device and upgrading their phones with a simple download,” Hickock added.
The AxessGuard™I is available in two models: the AGX10 (CDMA version) and AGG10 (GSM version), and offers an innovative security system with which end users can be notified of any motion detected in the area they want to secure by simply connecting the devices to an existing Axesstel CDMA or GSM fixed wireless phone or terminal – its simple plug-and-play installation requires no additional power source. With built-in motion detectors, the device triggers the fixed wireless phone or terminal to send out an alert message via SMS or make a call to up to 5 preprogrammed mobile or fixed numbers upon detecting motion in the secured area. The device can be armed or disarmed through the keypad or by SMS from programmed mobile phones remotely with password.
About Axesstel, Inc.
Axesstel (AMEX:AFT - News) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel’s best in class product portfolio includes broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
© 2008 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
With the exception of historical information, the statements set forth above include forward-looking statements relating to market penetration and conditions, product capabilities and the timing of new product introductions which may affect future results and the future viability of Axesstel. Axesstel wishes to caution readers that actual results could differ materially from those suggested by the forward-looking statements due to risks and uncertainties and a number of important risk factors. Those factors include but are not limited to unforeseen manufacturing difficulties, unanticipated component shortages, competitive pricing pressures and the risk factors noted in Axesstel's filings with the Securities and Exchange Commission, such as the rapidly changing nature of technology and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; product and customer mix, Axesstel's need to gain market acceptance for its products; the risks of primary dependence on a limited number of significant customers; potential intellectual property-related litigation; Axesstel's need to attract and retain skilled personnel; and Axesstel's primary reliance on its sole contract manufacturer. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axesstel undertakes no obligation to revise or update this press release to reflect events or circumstances occurring after this press release.
Contact:
Company PR Contact:
Axesstel, Inc.
Alysia Lee, +1-858.625.2100 X310
alee@axesstel.com
or
Investor Relations Contact:
Lippert / Heilshorn & Associates
Kirsten Chapman / Cathy Mattison
+1-415.433.3777
cmattison@lhai.com
DOW Futures down 335. Puts looking good.....
Huge MMM Dec put volume on the 65's. 60's also showing large volume.
Something to keep an eye on.
Anyone here playing Strangles or Straddles or are you just buying straight puts and calls? Just trying to figure out the best way to go in this market.
My thinking is Strangles take the guessing work out of it, and you have a better chance of making $$$ in this volatile market (although not as much $$$)
They are more than interesting......They're great!!!
Axesstel Reports Third Quarter 2008 Results
Thursday November 6, 7:00 am ET
Continues Substantial Turnaround Generating Revenues of $30.1 Million Compared to $15.4 Million in Q307
Posts Third Consecutive Profitable Quarter with EPS of $0.02 Compared to Loss of $0.13 Per Share in Q307
Wins and Ships Strategic Award for New GSM Phone in Mexico
Launches M2M Security Device and Secures First Order
Reiterates Guidance for Record Revenues & Profitability in 2008
SAN DIEGO--(BUSINESS WIRE)--Axesstel, Inc. (AMEX: AFT - News), a recognized leader in the design and development of fixed wireless voice and broadband data products, reported results for the third quarter and nine months ended September 28, 2008.
ADVERTISEMENT
Clark Hickock, CEO of Axesstel, stated, “We have achieved a substantial turnaround in our performance compared to last year. In the third quarter, we delivered strong revenue of $30.1 million, almost double our third quarter 2007 revenue and bringing our year-to-date revenue to $86.3 million, which surpassed our revenue for all of 2007. As expected, product mix pushed the third quarter’s gross margin to 21 percent. However, our year-to-date gross margin is 24 percent, and we are above target for our annual gross margin goal of 21 percent to 23 percent. For the quarter, we recorded EPS of $0.02, bringing the year-to-date EPS to $0.08. We are ahead of plan to meet our 2008 guidance for record revenue of over $100 million and profitability for the year.”
“The Americas and EMEA performed well during the third quarter generating $16.4 million and $11.0 million, respectively, as a result of both new customers and expanding existing customer relationships. Our complete line of GSM and CDMA products are increasing our opportunities in these markets. For example, we identified Mexico as a strategic target for 2008. This quarter, we won a competitive bid from a large GSM operator in Mexico and we expect a large follow on order in the fourth quarter.”
“Also, we are very excited about the launch of our first machine-to-machine (M2M) solution and expect to make initial product deliveries in the fourth quarter. The AxessGuard™I works with either GSM or CDMA technology and pairs our phones and terminals with a security device that will generate an alert via instant message service in the event of a security breach. In addition to offering this product to new subscribers, we will be marketing AxessGuard to our existing customer base of over three million phone users who can purchase the security device and integrate it to their phones with a simple software download. We believe AxessGuard is a great entry to the M2M arena, and we look forward to pursuing additional M2M growth areas such as more security products, point of sales devices, telemetry data, CCTV surveillance and more.”
“In late 2007, we completed significant cost reductions providing a head start on actions required in tough economic times. As such, we are ahead of the curve in rationalizing our business operations and are prepared to capitalize on our investment in the rapidly growing emerging markets. We are encouraged by our 2008 results. With our full complement of CDMA and GSM voice and broadband data products, we have laid the foundation for a strong and stable base in 2009 and continue to be excited about our prospects,” Hickock concluded.
Financial Results
Revenues for the third quarter of 2008 were $30.1 million, compared to revenues of $15.4 million in the third quarter of 2007. In the third quarter, data product revenue was $11.2 million, compared to $9.9 million in the 2007 third quarter, contributing 37 percent of revenue this quarter versus 64 percent a year ago. The expected shift in product mix and revenue contribution impacted gross margin, which was $6.5 million or 21 percent of revenue for the third quarter 2008, compared to $3.5 million or 23 percent of revenue for the same period last year. Net income was $433,000 or $0.02 per diluted share, compared to a net loss of $3.0 million or $0.13 per diluted share in the third quarter of 2007.
For the nine months ended September 28, 2008, the company reported revenue of $86.3 million, increasing 26 percent compared to $68.6 million for the first nine months of 2007. Gross margin as a percent of revenue improved to 24 percent, compared to 21 percent for the same period last year. Net income for the first nine months of 2008 was $1.9 million or $0.08 per share, compared to a net loss of $4.0 million or $0.17 per share for the first nine months 2007.
Pat Gray, Axesstel’s CFO, stated, “This quarter we posted our third consecutive quarter of profitably. At quarter end, the company had cash and cash equivalents of $3.0 million, up from $555,000 at December 31, 2007. We continue to use our Wells Fargo line of credit. During the quarter, we increased our eligible credit limit to approximately $12 million subject to qualified receivables and had utilized $2.9 million at September 28, 2008. While we are cautious about the macro-economic pressures, we continue to believe our strategic banking relationships will provide us the necessary working capital to grow our business.”
Outlook
The company reiterated its expectations of full year 2008 revenues to exceed $100 million, up from $82.4 million in 2007. Additionally, the company continues to believe data products will contribute more than $60 million in revenues in 2008, up from $34.9 million in 2007, and will exceed phone revenues for the first time on an annualized basis. Product mix and customer demand can impact gross margin and profitability on a quarterly basis. However, based on its ongoing assessment of the market, management is optimistic about delivering profitability for the year.
Recent Highlights
Launched its first M2M product: new AxessGuard™I, an innovative and cost-effective security device that detects motion and notifies the user through connection to an existing Axesstel CDMA or GSM fixed wireless phone or terminal.
Demonstrated products supporting Arabic language user interface, the new HSUPA ExpressCard/34 advanced modem and the entire suite of broadband data and fixed wireless phones and terminal products at GiTex 2008 in Dubai in October.
Competitively won a bid from a large operator in Mexico for GSM phones.
Launched the EU230 HSUPA Mini ExpressCard/34 for High-Speed Uplink Packet Access (HSUPA) networks.
Executed a new distributor agreement with GetWireless, a North American distributor, and received an initial purchase order for the MV440 EV-DO Rev. A Gateway with Wi-Fi router.
Ranked number 14 in Deloitte’s Technology Fast 50 Program for San Diego, a ranking of the 50 fastest growing technology, media, telecommunications, and life sciences companies in the area by Deloitte LLP.
Conference Call
Axesstel will host a conference call at 8:00 AM PT (11:00 AM ET) on Thursday, November 6, 2008, to discuss its third quarter 2008 results. Participating in the call will be Clark Hickock, chief executive officer, and Patrick Gray, chief financial officer. The call is being webcast and can be accessed from the “Investor Relations” section of the company’s website at http://www.axesstel.com. Alternatively, you may dial the following number ten minutes prior to the scheduled conference call time: 1-877-663-9622. International callers should dial 00-1-706-634-9407. There is no pass code required for this call.
If you are unable to participate in the call at this time, the webcast will be archived on the Axesstel website. In addition, a telephonic replay will be available on Thursday, November 6 at 2:00 p.m. ET through Monday, November 10 at 11:59 p.m. ET. To access the replay, please dial 1-800-642-1687. International callers should dial 00-1-706-645-9291. The pass code is 68173980.
ABOUT AXESSTEL, INC.
Axesstel (AMEX:AFT - News) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel's best in class product portfolio includes broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
(C) 2008 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements relating to market penetration and conditions, product capabilities and the timing of new product introductions which may affect future results and the future viability of Axesstel. Axesstel wishes to caution readers that actual results could differ materially from those suggested by the forward-looking statements due to risks and uncertainties and a number of important risk factors. Those factors include but are not limited the risk factors noted in Axesstel's filings with the Securities and Exchange Commission, such as to the need for additional working capital; economic and political instability in developing markets served by Axesstel; unforeseen manufacturing difficulties, unanticipated component shortages, competitive pricing pressures and the rapidly changing nature of technology and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; product and customer mix, Axesstel's need to gain market acceptance for its products; dependence on a limited number of large customers; potential intellectual property-related litigation; Axesstel's need to attract and retain skilled personnel; and Axesstel's reliance on its primary contract manufacturer. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axesstel undertakes no obligation to revise or update this press release to reflect events or circumstances occurring after this press release.
AXESSTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended For the nine months ended
September 28, 2008 September 30, 2007 September 28, 2008 September 30, 2007
Net revenues $ 30,051,128 $ 15,433,041 $ 86,317,041 $ 68,648,768
Cost of goods sold 23,598,449 11,919,325 65,215,447 53,984,206
Gross margin 6,452,679 3,513,716 21,101,594 14,664,562
Operating expenses:
Research and development 1,206,418 1,677,174 3,659,484 5,355,302
Selling, general and administrative 4,613,804 4,681,329 14,146,693 13,016,018
Total operating expenses 5,820,222 6,358,503 17,806,177 18,371,320
Operating income (loss) 632,457 (2,844,787 ) 3,295,417 (3,706,758 )
Other income (expense):
Interest and other income 6,404 11,618 21,752 51,154
Interest and other expense (144,856 ) (170,550 ) (1,368,476 ) (324,216 )
Total other income (expense) (138,452 ) (158,932 ) (1,346,724 ) (273,062 )
Income (loss) before provision for income taxes 494,005 (3,003,719 ) 1,948,693 (3,979,820 )
Provision for income taxes 60,928 - 60,928 -
Net income (loss) 433,077 (3,003,719 ) 1,887,765 (3,979,820 )
Earnings (loss) per share:
Basic $ 0.02 ($0.13 ) $ 0.08 ($0.17 )
Diluted $ 0.02 ($0.13 ) $ 0.08 ($0.17 )
Weighted average shares outstanding:
Basic 23,228,982 22,903,982 23,228,982 22,886,839
Diluted 23,750,026 22,903,982 23,571,439 22,886,839
AXESSTEL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
ASSETS
Current assets: September 28, 2008 December 31, 2007
Cash and cash equivalents $ 3,012,941
$ 555,301
Accounts receivable, net 31,110,306
20,801,710
Inventory 1,344,589 2,535,433
Prepayments and other current assets 858,085
1,295,697
Total current assets 36,325,921
25,188,141
Property and equipment, net 1,123,479
1,694,493
Other assets:
License, net 1,297,324 1,609,304
Other, net 437,616 871,059
Total other assets 1,734,940 2,480,363
Total assets $ 39,184,340
$ 29,362,997
LIABILITIES AND STOCKHOLDERS' EQUITY
September 28, 2008 December 31, 2007
Current liabilities:
Accounts payable $ 25,292,942
$ 22,619,976
Bank financing 2,852,878 490,000
Customer advances 5,375 286,806
Accrued commissions 3,218,430 1,645,099
Accrued royalties 1,863,102 767,000
Accrued warranties 460,000 460,000
Accrued expenses and other current liabilities 2,478,617
1,818,279
Total current liabilities 36,171,344
28,087,160
Stockholders' equity 3,012,996 1,275,837
Total liabilities and stockholders' equity $ 39,184,340 $ 29,362,997
Contact:
Lippert / Heilshorn & Associates
Investor Relations
Kirsten Chapman / Cathy Mattison
415-433-3777
cmattison@lhai.com
--------------------------------------------------------------------------------
Source: Axesstel, Inc.
Axesstel Announces Third Quarter 2008 Results Conference Call
Thursday October 23, 8:00 am ET
SAN DIEGO--(BUSINESS WIRE)--Axesstel, Inc. (AMEX:AFT - News), a leader in the design and development of fixed wireless voice and broadband data products, announced it intends to release its third quarter 2008 financial results before the market opens on Thursday, November 6, 2008. The company intends to host a conference call at 8:00 a.m. PT (11:00 a.m. ET) to discuss its third quarter 2008 results. Participating in the call will be Clark Hickock, chief executive officer and Patrick Gray, chief financial officer.
ADVERTISEMENT
The call is being webcast and can be accessed from the “Investor Relations” section of the company’s website at http://www.axesstel.com. Alternatively, you may dial the following number ten minutes prior to the scheduled conference call time: 1-877-663-9622. International callers should dial 00-1-706-634-9407. There is no pass code required for this call.
If you are unable to participate in the call at this time, the webcast will be archived on the Axesstel website. In addition, a telephonic replay will be available on Thursday, November 6 at 2:00 p.m. ET through Monday, November 10 at 11:59 p.m. ET. To access the replay, please dial 1-800-642-1687. International callers should dial 00-1-706-645-9291. The pass code is 68173980.
About Axesstel, Inc.
Axesstel (AMEX:AFT - News) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel’s best in class product portfolio includes broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
© 2008 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.
Contact:
Investor Relations Contact:
Cathy Mattison
Lippert / Heilshorn & Associates
+1-415.433.3777
cmattison@lhai.com
--------------------------------------------------------------------------------
Source: Axesstel, Inc.
Goldman Sachs reports earnings before the market opens tomorrow. May be worth a look for a Straddle or a Strangle.
It's sitting at its 200 day MA right now, which from what I can see, it has never broken. Also near some good support in the low $240's. May be worth a small play here.
GOOG sitting at strong support ($460). Maybe time for some 500 calls (GOPIO)?
200 MA broken on TRA, POT, AGU, MOS
Looks like it may go lower from here.
200 MA broken on TRA, POT, AGU, MOS
Looks like it may go lower from here.
Axesstel Announces Second Quarter 2008 Results
Thu Aug 7, 7:14 AM
Email Story IM Story Printable View
SAN DIEGO--(BUSINESS WIRE)--Axesstel, Inc. (AMEX: AFT), a recognized leader in the design and development of fixed wireless voice and broadband data products, announced results for the second quarter and six months ended June 29, 2008.
Clark Hickock, CEO of Axesstel, stated, “In the second quarter, we executed our plan to grow the business profitably and our success is attributable to our focus on both top and bottom line results. Our continued investment in dedicated regional sales teams serving a diversified and global customer base in emerging markets delivered revenue of $31.6 million. This level of revenue, when combined with our operating expense reductions, generated record net income for the quarter of $1.2 million with record EPS of $0.05.
“On the innovation side, the launch of our new CDMA2000 1xEVDO Rev. A fixed wireless phone began attracting strong interest from operators, and we already have advanced orders. As the emerging markets increase investment in new technology, we have built a pipeline of exciting new products to meet the demand for high performance data and phone devices. We set a 2008 goal to launch 12 products and have introduced seven to date. We are looking forward to the second half of 2008 as we are on track to launch five more new products,” Hickock added.
Financial Results
Revenues for the second quarter of 2008 were $31.6 million, including data products revenue of $23.5 million. This compares to revenues of $28.0 million including $11.9 million from data products in the second quarter of 2007. Revenue during the quarter from both data products and from sales in the EMEA region were at record levels of $23.5 million and $10.5 million, respectively. Gross margin for the second quarter 2008 was $8.0 million, or 25 percent of revenue, compared to $6.6 million, or 23 percent of revenue for the same period last year. Net income was $1.2 million or $0.05 per diluted share, compared to a net income of $273,000 or $0.01 per diluted share in the second quarter of 2007.
For the six months ended June 29, 2008, the company reported revenue of $56.3 million, compared to $53.2 million for the first half of 2007. Net income for the first half of 2008 was $1.5 million, or $0.06 per share, compared to net loss for the first half of 2007 of $976,000, or $0.04 per share.
As of June 29, 2008, the company had approximately $25 million in backlog which is expected to be delivered in the third quarter.
Pat Gray, Axesstel’s CFO, stated, “At quarter end, the company had cash and cash equivalents of $1.4 million, an increase of $800,000 since the beginning of the year. During the quarter, we had sales of $31.6 million, pushing accounts receivable to $38.7 million. We financed $10.4 million of working capital against these accounts receivable, the majority of which came from our Wells Fargo line of credit. This financing is a reflection of the quality of the sales we are making and a high level of confidence in our execution. We believe our strategic banking relationships will provide us the necessary working capital to grow our business.”
Outlook
The company continues to expect full year 2008 revenues to exceed $100 million, up from $82.4 million in 2007. Additionally, the company believes data products will contribute more than $60 million in revenues in 2008, up from $34.9 million in 2007, and will exceed phone revenues for the first time on an annualized basis. Product mix and customer demand can impact gross margin and profitability on a quarterly basis. However, based on its assessment of the market, management is optimistic about delivering profitability for the year.
Recent Highlights
Expanded its product portfolio to WCDMA/HSPA networks and increased its addressable markets with the launch of the EU230 HSUPA Mini ExpressCard/34 wireless modem for High-Speed Uplink Packet Access (HSUPA) networks.
Launched the first CDMA2000 1xEVDO Rev. A fixed wireless phone on the market, combining voice and high-speed data communications into a highly integrated phone and data device and exhibited at CommunicAsia 2008 in Singapore in June.
Won an annual follow-on purchase order from a customer in EMEA for over 120,000 units, which contributed to the record second quarter revenue from this region.
Received notification the American Stock Exchange accepted the company’s compliance plan. The company is ahead of schedule on the plan submitted.
Conference Call
Axesstel will host a conference call at 8:00 AM PT (11:00 AM ET) to discuss its second quarter 2008 results. Participating in the call will be Clark Hickock, chief executive officer, and Patrick Gray, chief financial officer.
The call is being webcast and can be accessed from the “Investor Relations” section of the company’s website at http://www.axesstel.com. Alternatively, you may dial the following number ten minutes prior to the scheduled conference call time: 1-877-663-9622. International callers should dial 00-1-706-634-9407. There is no pass code required for this call.
If you are unable to participate in the call at this time, the webcast will be archived on the Axesstel website. In addition, a telephonic replay will be available on Thursday, August 7 at 2:00 p.m. ET through Monday, August 11 at 11:59 p.m. ET. To access the replay, please dial 1-800-642-1687. International callers should dial 00-1-706-645-9291. The pass code is 55056528.
ABOUT AXESSTEL, INC.
Axesstel (AMEX: AFT) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel's best in class product portfolio includes broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
(C) 2008 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements relating to market penetration and conditions, product capabilities and the timing of new product introductions which may affect future results and the future viability of Axesstel. Axesstel wishes to caution readers that actual results could differ materially from those suggested by the forward-looking statements due to risks and uncertainties and a number of important risk factors. Those factors include but are not limited the risk factors noted in Axesstel's filings with the Securities and Exchange Commission, such as to the need for additional working capital; economic and political instability in developing markets served by Axesstel; unforeseen manufacturing difficulties, unanticipated component shortages, competitive pricing pressures and the rapidly changing nature of technology and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; product and customer mix, Axesstel's need to gain market acceptance for its products; dependence on a limited number of large customers; potential intellectual property-related litigation; Axesstel's need to attract and retain skilled personnel; and Axesstel's reliance on its primary contract manufacturer. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axesstel undertakes no obligation to revise or update this press release to reflect events or circumstances occurring after this press release.
AXESSTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended For the six months ended
June 29, 2008 July 1, 2007 June 29, 2008 July 1, 2007
Revenues $ 31,628,976 $ 28,025,951 $ 56,265,913 $ 53,215,727
Cost of goods sold 23,582,519 21,446,608 41,616,998 42,064,881
Gross margin 8,046,457 6,579,343 14,648,915 11,150,846
Operating expenses:
Research and development 1,352,299 1,785,923 2,453,066 3,678,128
Selling, general and administrative 4,826,599 4,440,694 9,532,889 8,334,689
Total operating expenses
6,178,898 6,226,617 11,985,955 12,012,817
Operating income (loss) 1,867,559 352,726 2,662,960 (861,971 )
Other income (expense):
Interest and other income (14,540 ) 22,906 15,348 39,536
Interest and other expense (654,989 ) (102,798 ) (1,223,620 ) (153,666 )
Total other income (expense) (669,529 ) (79,892 ) (1,208,272 ) (114,130 )
Income (loss) before provision for income taxes 1,198,030 272,834 1,454,688 (976,101 )
Provision for income taxes - - - -
Net income (loss) 1,198,030 272,834 1,454,688 (976,101 )
Earnings (loss) per share:
Basic $ 0.05 $ 0.01 $ 0.06 ($0.04 )
Diluted $ 0.05 $ 0.01 $ 0.06 ($0.04 )
Weighted average shares outstanding:
Basic 23,228,982 22,888,982 23,228,982 22,878,267
Diluted 23,572,213 23,173,701 23,314,113 22,878,267
AXESSTEL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
ASSETS
Current assets: June 29, 2008 December 31, 2007
Cash and cash equivalents $ 1,379,440 $ 555,301
Accounts receivable, net 38,700,310 20,801,710
Inventory
1,351,232 2,535,433
Prepayments and other current assets 888,618 1,295,697
Total current assets 42,319,600 25,188,141
Property and equipment, net 1,320,000 1,694,493
Other assets:
License, net 1,429,789 1,609,304
Other, net 583,559 871,059
Total other assets 2,013,348 2,480,363
Total assets $ 45,652,948 $ 29,362,997
LIABILITIES AND STOCKHOLDERS' EQUITY
June 29, 2008 December 31, 2007
Current liabilities:
Accounts payable $ 24,945,763 $ 22,619,976
Bank financing 10,362,347 490,000
Customer advances 181,771 286,806
Accrued commissions 2,965,742 1,645,099
Accrued royalties 1,813,000 767,000
Accrued warranties 460,000 460,000
Accrued expenses and other current liabilities 2,148,275 1,818,279
Total current liabilities 42,876,898 28,087,160
Stockholders' equity 2,776,050 1,275,837
Total liabilities and stockholders' equity $ 45,652,948 $ 29,362,997
Investor Relations:
Lippert / Heilshorn & Associates
Kirsten Chapman / Cathy Mattison
415-433-3777
cmattison@lhai.com
http://ca.news.finance.yahoo.com/s/07082008/34/biz-f-business-wire-axesstel-announces-second-quarter-2008-results.html
Axesstel Announces Second Quarter 2008 Conference Call
Tuesday July 29, 8:05 am ET
SAN DIEGO--(BUSINESS WIRE)--Axesstel, Inc. (AMEX:AFT - News), a leader in the design and development of fixed wireless voice and broadband data products, announced it will release its second quarter 2008 financial results before the market opens on Thursday, August 7, 2008. The company will host a conference call at 8:00 a.m. PT (11:00 a.m. ET) to discuss its second quarter 2008 results.
ADVERTISEMENT
The call is being webcast and can be accessed from the “Investor Relations” section of the company’s website at http://www.axesstel.com. Alternatively, you may dial the following number ten minutes prior to the scheduled conference call time: 1-877-663-9622. International callers should dial 00-1-706-634-9407. There is no pass code required for this call.
If you are unable to participate in the call at this time, the webcast will be archived on the Axesstel website. In addition, a telephonic replay will be available on Thursday, August 7 at 2:00 p.m. ET through Monday, August 11 at 11:59 p.m. ET. To access the replay, please dial 1-800-642-1687. International callers should dial 00-1-706-645-9291. The pass code is 55056528.
ABOUT AXESSTEL, INC.
Axesstel (AMEX:AFT - News) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel’s best in class product portfolio includes, broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
© 2008 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.
Contact:
Investor Relations Contact:
Lippert / Heilshorn & Associates
Cathy Mattison, +1-415-433-3777
cmattison@lhai.com
--------------------------------------------------------------------------------
Source: Axesstel, Inc.
http://biz.yahoo.com/bw/080729/20080729005461.html?.v=1
I guess I should stay away from here......
Looks like that bullet has my name on it........yikes!!!!
My point exactly. I believe the same will happen with SOHU.
I think they will beat on earnings, but outlook may be cautious.
They are also near they're high and have a gap to fill from last earnings (GOOG did same).
The markets are really fickle and unless they beat by a ton and guide much higher, they should go down. I may hedge the position with a 90 call though.
Looking at some Aug 70 SOHU puts here (UZKTN).
They report earnings Monday before the open.
Those $1.00 37.50 puts of mine are looking really good as well.
Just bought JPM Aug $37.50 Puts (JPMTU) for $1.00
I just don't believe in this little rally we're having.
If I'm not mistaken, that's Reggie Middleton. He's been spot on with his research.
For anyone else who's interested in his research go to http://boombustblog.com/
Lots of great stuff there.
Still holding up very nicely despite the markets.
What do you think about this play?
Buy GOOG strangle .GOPGX (JUL 540 put)and .GOPSO (JUL 500 call) and sell them on Thursday.
People are paying a huge premium on them right now, and it looks like the puts are outgaining the calls, so you pocket the difference on Thursday before the market closes.
Make any sense??
IMO you need to stop gambling your hard earned money buying Pink Sheet stocks. They are no more than a way to make money for the broker and directors of the company. You'll have more luck playing the lottery. I wish I could short them, because I'd make a killing.
"Pink Sheets is neither a NASD broker-dealer nor registered with the U.S. Securities and Exchange Commission; it is not a stock exchange. To be quoted in the Pink Sheets companies do not need to fulfill any requirements (e.g. filing financial statements with the SEC). With the exception of a few foreign issuers (mostly represented by American Depositary Receipts, or ADRs), the companies quoted in the Pink Sheets tend to be closely held, extremely small, or thinly traded. Most do not meet the minimum U.S. listing requirements for trading on a stock exchange such as the New York Stock Exchange. Many of these companies do not file periodic reports or audited financial statements with the SEC, making it very difficult for investors to find reliable, unbiased information about those companies"
I would say that short covering accounts for most of the spikes that we've seen. We're still in a bear market, and will be for quite some time IMO.
WSJ: Short Selling on NYSE Sets Record
By ANNELENA LOBB
June 20, 2008; Page C7
Short selling at the New York Stock Exchange set another record in the first half of June.
Short positions not yet closed out -- or short interest -- jumped 7.4% to 17,654,028,383 shares in the semimonthly reporting period ended June 13 from 16,431,281,684 shares on May 30.
The short ratio, or number of days' average volume represented by short positions outstanding, fell to 4.1 from 4.3 at the end of prior period.
Investors who "short" shares borrow and sell them, betting prices will fall so they will replace the shares later at a lower price.
Accelerating inflation and weak growth put investors in a bearish frame of mind. "There's no big concern of a market rally, short of interest rates being lowered, which isn't going to happen," said Harry Strunk of Treflie Capital Management.
The next NYSE short report will be published in the Journal on July 8. That day's report won't include American Stock Exchange data, since the Amex will start reporting on the same day as Nasdaq beginning with the July 11 paper. The next Nasdaq report is June 25.
Write to Annelena Lobb at annelena.lobb@wsj.com
http://online.wsj.com/article/SB121392734761890955.html?mod=todays_us_money_and_investing
Form 10-Q for AXESSTEL INC
--------------------------------------------------------------------------------
14-May-2008
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Forward-Looking Statements
Statements in the following discussion and throughout this report that are not historical in nature are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify forward-looking statements by the use of words such as the words "expect," "anticipate," "estimate," "may," "will," "should," "intend," "believe," and similar expressions. Although we believe the expectations reflected in these forward-looking statements are reasonable, such statements are inherently subject to risk and we can give no assurances that our expectations will prove to be correct. Actual results could differ from those described in this report because of numerous factors, many of which are beyond our control. These factors include, without limitation, those described below under the heading "Risk Factors." We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes.
The following discussion should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this report.
Overview
We design, develop, market and manufacture fixed wireless voice and broadband data products for the worldwide telecommunications market. Our product portfolio includes fixed wireless desktop phones, public call office (PCO) phones, voice/data terminals, broadband modems, and 3G gateway devices for access to voice calling and high-speed data services.
Our products have similar functionality to phones and modems that use the traditional landline telecommunications network; however, they are wireless devices and can be substituted for wired phones and modems. Most of our products sold to date have been based on CDMA (3G Code Division Multiple Access) technology developed by Qualcomm Incorporated. We are increasing our focus on new products based on GSM (Global System for Mobile Communications) and GPRS (General Packet Radio Service) technologies to enhance our product offering and expand our market. In addition to the introduction of GSM and GPRS based products, we have increased our focus on the development of data products, including broadband modems and 3G gateway devices, which represent an increasing percentage of our overall revenues
We currently sell our products to telecommunications operators in developing countries where large segments of the population do not have telephone or internet service. To date our largest markets have been in Asia, Europe Middle East and Africa (EMEA), and Latin America, with our largest customers located in India and Venezuela.
History
We were founded in July 2000. In late 2002 we began performing original design manufacturing and product engineering and development for major international telecommunications companies. In December 2002, we acquired Entatel, Ltd., a South Korean company, in order to meet the engineering requirements of these projects, and changed its name to Axesstel R & D Center Co., Ltd. This name was later changed to Axesstel Korea Inc. and continues as our operating research and development subsidiary located in Korea.
Our primary business in 2003 was focused on contract research and development and we engaged in only limited manufacturing and product sales on behalf of third parties. In late 2003 and early 2004, we believed that changing market factors would result in increasing demand for fixed wireless phones. In response, we refocused our business to concentrate exclusively on developing, manufacturing and selling our own branded and co-branded fixed wireless products.
--------------------------------------------------------------------------------
Table of Contents
In 2004, we commenced large scale product manufacturing with Wistron NeWeb Corporation, or WNC. WNC presently has two high speed production lines in mainland China dedicated to high volume production, and the ability to add additional lines to match future capacity needs. We continue to work with WNC in sourcing components for our products in an effort to reduce costs, ensure the quality of the components we purchase and mitigate against the risk that components are not available at the time we need the components to fulfill our customer orders. We believe WNC provides flexibility and scalability to our manufacturing operations.
Recent Developments
We began 2008 with four key strategic goals:
• stabilize revenues through customer and product diversity;
• increase sales through localized sales teams,
• expand our offerings of higher margin data products; and
• achieve profitability.
As of March 30, 2008, we have a total of 68 customers in 57 countries and we expect continued expansion of our customer base in future periods. In mid February at the GSM Mobile World Congress, we introduced five newly redesigned GSM products, including dual band and quad band phones and terminals, which are available for purchase. These include basic models that deliver reliable, low cost solutions; cordless models which appeal to the growing number of consumers looking for a more convenient product; and our quad-band models which enable operators to buy one solution and use it in all of their GSM markets or redirect inventory as appropriate.
Our efforts to localize sales in EMEA produced significant results with record revenues in the first quarter of 2008 of $8.5 million. We continued to experience strong sales in Latin America with revenues for that region of $15.9 million in the first three months of 2008. We are in the process of expanding a localized sales team in Asia, and expect improved results from this region in the second half of 2008. In addition, we experienced continued growth in our revenue from data products.
Revenues from data products increased from $5.1 million in the three months ended April 1, 2007 to a record $13.6 million in the three months ended March 30, 2008. As a percentage of revenues, we expect data products to represent approximately 60% in 2008 compared to 42% in 2007.
We believe the operating challenges we experienced in 2007, specifically with the delayed Venezuela collections creating a working capital shortfall which impacted our ability to timely pay our principal manufacturer, WNC, are behind us. We continue to experience significant collection activity and have resumed normal production levels. We completed the first quarter of 2008 with revenues of $24.6 million and net income of approximately $257,000.
Outlook
As we enter 2008, we will continue our focus on our core strategic goals:
Customer diversity is critical to mitigating the risk of quarter to quarter volatility. We will continue to diversify our customer base and add new accounts. The addition of our GSM product line is opening new markets, particularly in Central and South America, where operators are predominantly on the GSM standard. We are also looking to supply our current customers with higher end data products as they roll out upgrades to their network infrastructure.
Our sales strategy concentrating on localized sales teams has been successful in EMEA and we expect to continue that strategy. We are looking at establishing additional sales offices in that region. We have also placed a regional sales manager in Asia in an effort to increase sales in that region.
We expect to launch over a dozen new products in 2008. In addition to our GSM phones launched in February 2008, we will be introducing advanced EVDO hi-speed data phones. We are expanding our broadband data lines to include EDGE, HSDPA and HSUPA modems, which we anticipate will be available in the second half of 2008.
We are addressing operating profitability in 2008 from both the revenue and expense side. On the revenue side, based on current backlog and anticipated growth in the wireless markets we serve, we expect revenues to return to, and exceed the levels reached in 2005 and 2006. The migration to higher margin data products is expected to accelerate, thereby increasing our gross margin. Finally at the end of 2007 we implemented a number of measures to reduce our operating expenses. We transitioned research and development of our lower margin phones to an outsourced design and manufacturing model. That is allowing us to reduce our internal engineering and support resources as well as lease expenses. We expect these changes to reduce operating expenses in 2008 by approximately $3 million.
--------------------------------------------------------------------------------
Table of Contents
Increasing our working capital will also be a key goal for 2008. The operating losses we experienced from 2004 to 2007 have reduced our working capital position. At the outset of 2008, we entered into a distributor agreement that will enable us to secure financing on our orders to Venezuela. We have also established new working capital lines of credit with Wells Fargo that will allow us to borrow against backed letters of credit and credit insured accounts receivable. We expect these facilities, along with the reduction in operating expenses described above, to provide sufficient working capital to continue operations in accordance with our current business plan. However, we do not have sufficient working capital resources to offset extraordinary expenses or a substantial decline in operating income. For that reason we do anticipate seeking additional debt or equity financing during 2008. See "Liquidity and Capital Resources" below.
Overall, we expect revenue in 2008 to exceed $100 million, up from $82.4 million in 2007. We expect data products will contribute more than $60 million in revenues in 2008, up from $34.9 million in 2007, and will exceed phone revenues for the first time on an annualized basis. We continue to strive towards profitability based on an increase in revenues, adjustment in product mix, and streamlining of operating expenses that was implemented at the end of 2007. Although we realize profitability is highly dependent on product and customer mix, and anticipate we may not be profitable every quarter, we are committed to achieving profitability for the year.
Revenues
Our product portfolio consists of fixed wireless products in five categories:
desktop phones, PCO phones, voice/data terminals, broadband modems, and 3G gateway devices. We believe that an increasing portion of our anticipated growth will come from sales of our next generation data products, such as our fixed wireless broadband modem and 3G gateway devices, into developing and industrialized countries as demand grows for broadband data services.
We sell our products to telecommunications service providers on a fixed price-per-unit basis. Our customers in turn resell our products to end users as part of the end users' service activation. For the three months ended March 30, 2008, approximately 58% of our revenues were derived from two customers, whose orders represented 33% and 25% of revenues, respectively.
All of our sales are based on purchase orders or other short-term arrangements. We negotiate the pricing of our products based on the quantity and the length of the time for which deliveries are to be made. For orders involving a significant number of units, or which involve deliveries over a long period of time, we typically receive rolling forecasts or a predetermined quantity for a fixed period of time from our customers, which in turn allows us to forecast internal volume and component requirements for manufacturing. In order to minimize our collection risks, we attempt to sell to our international customers under guaranteed letters of credit or open terms secured by credit insurance. At times, we extend credit based on evaluation of the customer's financial condition. To date, substantially all of our product sales have been to customers outside of the United States. In order to minimize foreign exchange risk, we have made all sales to date in U.S. dollars.
We supply our principal manufacturer WNC with rolling forecasts. In addition, we receive forecasts from our customers, and in turn, place orders with WNC for near-term production. Based upon our purchase orders and forecasts, WNC procures components in amounts intended to meet the near-term demand. Following receipt of our orders, WNC generally manufactures our products and delivers the finished goods to the customer's freight forwarder in China, transferring title at that point. We generally recognize revenue upon the transfer of title to the freight forwarder.
Cost of Goods Sold
Cost of goods sold consists of direct materials, manufacturing expense, freight expense, warranty expense, and royalty fees. Pricing for fixed wireless products has declined since we've entered into this business. We believe our ability to increase sales of our products and achieve profitability will depend in part on our ability to reduce cost of goods sold. We continue our cost reduction efforts through the following initiatives: increasing our purchasing power through increased volume; ordering standardized parts used across our product lines; looking for additional manufacturing partners in low cost regions; reengineering our products with new technologies and expertise to decrease the number of components; relying more on application and software development than hardware; and improving our manufacturing processes.
Research and Development
Research and development expenses consist primarily of salaries and related expenses for engineering personnel, facility expenses, employee travel, fees for outside service providers, test fees and depreciation of developmental test equipment. The majority of this activity is for software, mechanical and hardware product development. We are increasingly focusing our research and development on data products, seeking areas where product differentiation will provide value to our customers and provide protection on pricing. We expense research and development costs as they are incurred.
--------------------------------------------------------------------------------
Table of Contents
Selling, General and Administrative
Selling, general and administrative expenses consist primarily of salaries and related expenses for executive and operational management, finance, human resources, information technology, sales and marketing, program management and administrative personnel. Other costs include facility expenses, employee travel, bank and financing fees, insurance, legal expense, commissions and collection fees, accounting, professional service providers, board of director expense, stockholder relations, amortization of intangible assets, and depreciation expense of software and other fixed assets.
Critical Accounting Policies and Estimates
The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. In consultation with our board of directors, we have identified the following accounting policies that we believe are key to an understanding of our financial statements. These accounting policies require management's subjective judgments.
Revenue Recognition and Warranty Reserve
Revenues from product sales are recognized when the risks of ownership and title are transferred to the customer as specified in the respective sales agreements and other revenue recognition criterion as prescribed by Staff Accounting Bulletin, or SAB, No. 101 "Revenue Recognition in Financial Statements," as amended by SAB No. 104. Generally, the risks of ownership and title pass when product is received by the customer's freight forwarder. If and when products are returned, we normally exchange them or provide credits to the customer. The returned products in turn are shipped back to the third party manufacturer and we are issued a credit or exchange from the manufacturer. At March 30, 2008, management concluded that a sales return allowance of $1,040,000 was needed.
On certain contracts, we provide warranty replacement units ranging from 1-2 percent of total units shipped. The cost related to the warranty replacement unit is included in the cost of goods sold and recorded when revenue is recognized. On other contracts, we do not provide warranty replacement units. In these cases, we provide third party service centers to the customer for any warranty performance. Costs for these service centers are recorded to cost of goods sold. During the three months ended March 30, 2008, we did not record significant warranty costs and, as of March 30, 2008, we established a warranty reserve of $460,000 to cover additional service costs over the life of the warranty. All products are tested by quality inspection prior to shipment and we have historically experienced a minimum level of defective units.
Sales Returns and Accounts Receivable Allowance
We extend credit based on evaluation of the customer's financial condition and payment history. At times, obligations for our foreign customers are secured either by letters of credit or by credit insurance. Significant management judgment is required to determine the allowance for sales returns and doubtful accounts. Management determines the adequacy of the allowance based on historical write-off percentages and information collected from individual customers. Accounts receivable are charged off against the allowance when collectibility is determined to be permanently impaired. At March 30, 2008, management determined that an allowance of $1,040,000 was necessary.
Capitalized Software Costs
Software development costs for products sold, which consist primarily of firmware embedded in our products, incurred after technological feasibility is established are capitalized in accordance with SFAS No. 86 "Accounting for the Costs of Computer Software to Be Sold, Leased or Otherwise Marketed." Amortization of these costs begins when the products are ready for sale. SFAS No. 86 and other authoritative literature, interpretations and industry practices prescribe that technological feasibility is reached when both the software and other components of the product's research and development activities are completed. We begin capitalizing software development costs upon attainment of both requirements. Our engineering processes demonstrate that the research and development activities of our products are completed simultaneously with the commencement of the manufacturing process. As such, we expense all research and development activities performed up to the commencement of the manufacturing process.
Valuation of Long-Lived Assets, Intangible Assets and Goodwill
We assess the impairment of long-lived assets, intangible assets and goodwill at least annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors we consider important which could trigger an impairment review include:
• significant underperformance relative to expected historical or projected future operating results;
• significant changes in the manner of our use of the acquired assets or the strategy for our overall business; and
• significant negative industry or economic trends.
--------------------------------------------------------------------------------
Table of Contents
When we determine that the carrying value of intangibles, long-lived assets and goodwill may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, we measure any impairment based on a projected discounted cash flow method using a discount rate determined by our management to be commensurate with the risk inherent in our current business model. During the year ended December 31, 2007, we determined that our goodwill was impaired and wrote off the carrying value of approximately $386,000. During the three months ended March 30, 2008, management concluded that no long-lived assets were impaired.
Our intangible assets consist mainly of our license fee agreements, which we amortize over a three to ten year life.
Deferred Tax Assets
We periodically and at least annually evaluate the realizability of the net deferred tax assets, taking into consideration prior earnings history, actual revenue and operations, projected operating results and the reversal of temporary differences.
Stock-Based Compensation
We have adopted SFAS No. 123R (revised 2004), Share-Based Payment, (SFAS 123R) which establishes standards for the accounting of transactions in which an entity exchanges its equity instruments for goods or services, primarily focusing on accounting for transactions where an entity obtains employee services in share-based payment transactions. SFAS 123R requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant-date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. SFAS 123R supersedes our previous accounting under Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (APB 25) and SFAS 123, Accounting for Stock Based Compensation, for periods beginning January 1, 2006. In March 2005, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 107 (SAB 107) relating to SFAS 123R. We have applied the provisions of SAB 107 in our adoption of SFAS 123R.
Quarterly Results of Operations
The following table sets forth, for the periods indicated, the consolidated
statements of operations data (in thousands) and the percentages of total
revenues thereto.
Three months ended Three months ended
($ in thousands) March 30, 2008 April 1, 2007
Revenues $ 24,637 100.00 % $ 25,189 100.00 %
Cost of goods sold 18,035 73.20 % 20,618 81.85 %
Gross margin 6,602 26.80 % 4,571 18.15 %
Operating expenses:
Research and development 1,101 4.47 % 1,892 7.51 %
Selling, general and administrative 4,706 19.10 % 3,894 15.46 %
Total operating expenses 5,807 23.57 % 5,786 22.97 %
Operating income (loss) 795 3.23 % (1,215 ) (4.82 )%
Other income (expense), net (538 ) (2.19 )% (34 ) (0.14 )%
Loss before income taxes 257 1.04 % (1,249 ) (4.96 )%
Income tax provision (benefit) - - % - - %
Net loss $ 257 1.04 % $ (1,249 ) (4.96 )%
Comparison of the Three Months Ended March 30, 2008 to the Three Months Ended April 1, 2007
General.
We recorded revenues of $24.6 million in the three months ended March 30, 2008 and recorded net income of approximately $257,000. We established record revenue from our data products of $13.6 million which led to record gross margin as a percentage of revenue of 27%. Regionally, we experienced strong revenue from Latin America of $15.9 million, record revenue from EMEA of $8.5 million, and weak revenue from Asia due to reduced phone business from this region and delays on the rollout of high speed data networks. We expect continued strength from the Latin America and EMEA regions in 2008, and expect Asia to improve in the second half of 2008.
--------------------------------------------------------------------------------
Table of Contents
Revenues.
For the three months ended March 30, 2008, which we refer to as Q1 2008, revenues were $24.6 million compared to $25.2 million for the three months ended April 1, 2007, which we refer to as Q1 2007, representing a 2% decrease. Revenues from data products were $13.6 million for Q1 2008, compared to $5.1 million for Q1 2007. In Q1 2008, our revenues were derived principally from two customers, which two customers individually represented 33% and 25% of revenues. In Q1 2007, our revenues were derived principally from two customers, which two customers individually represented 43% and 26% of revenues.
Our objective is to expand our product portfolio for broadband modem products in 2008, as well as to expand our customer base to reach new customers and new regions. We continue to expect that most of our sales will be to foreign customers or for products to be used in foreign countries. As we grow, we expect to become less dependent on a limited concentration of customers.
Cost of Goods Sold.
For Q1 2008, cost of goods sold was $18.0 million compared to $20.6 million for Q1 2007, a decrease of 13%. This decrease to cost of goods sold is largely attributable to the favorable product mix of data product revenue over the comparative periods. Our cost of materials declined on a per unit basis in 2008 as we were able to re-engineer our products to take advantage of cost efficient alternate parts, and reduce prices with our suppliers. In 2007 and continuing into 2008, most of our products were manufactured by one vendor.
We continue to work toward reduced manufacturing costs on a unit basis. We anticipate we will be able to further decrease unit cost as our purchase volume increases. We are also evaluating additional manufacturing vendors and other vendors to produce specific hardware and other components used in the manufacturing process in an effort to further reduce cost of goods sold.
Gross Margin.
For Q1 2008, gross margin as a percentage of revenues was a record 27% compared to 18% for Q1 2007. The gross margin percentage increase was mainly the result of favorable product mix from our data product revenue during the comparative periods, as we typically experience higher margins from our data products than from our phone products. We additionally experienced favorable regional mix from our revenue, as we typically experience higher margins from our Latin America and EMEA regions as compared to our Asia region.
We expect demand for our data products to remain strong in 2008, and expect the annual gross margins as a percentage of revenue to be in the low twenties. However, margins may fluctuate on an individual quarterly basis due to customer, regional, and product mix, as well as other factors.
Research and Development.
For Q1 2008, research and development was $1.1 million, compared to $1.9 million for Q1 2007, a decrease of 42%. This decrease was mainly attributable to decreases in the development of our phone products and decreased expense in outside certification test fees and outside development of prototype products in Q1 2008. As a percentage of revenues, research and development for Q1 2008 decreased to 4% from 8% in Q1 2007.
We are presently spending much of our research and development funds on the development of our next generation data products. In addition, significant modifications to current products are required for each customer and each geographical location where the end user is located. As we continue the development focus for our data products, we will enact cost reduction programs to lower the cost in the development of our phone products, including a strategy . . .
OT: Old WU play AFT now at .62
I think this one was called here when it was at .30
Anyone here still holding it?
I'm still holding here. Looking for over $1.00 on this one.
This little train just keeps on rolling.
AMEX problems are behind us and the company is profitable.
What more could you ask for???
American Stock Exchange Accepts Axesstel's Plan to Meet Continued Listing Standards
Friday May 9, 7:05 am ET
SAN DIEGO--(BUSINESS WIRE)--Axesstel, Inc. (AMEX:AFT - News) announced the staff of the American Stock Exchange (Amex) notified Axesstel that Amex has accepted Axesstel’s plan to regain compliance with Amex’s continued listing standards.
ADVERTISEMENT
As previously announced, on March 5, 2008, Axesstel received notice from Amex indicating Axesstel was not in compliance with Section 1003(a)(i) and Section 1003(a)(ii) of the Amex Company Guide. Specifically, Amex staff noted Axesstel's stockholder’s equity was less than $2,000,000 and losses from continuing operations and/or net losses were incurred in two out of the three most recent fiscal years, and that Axesstel's stockholder’s equity was less than $4,000,000 and losses from continuing operations and net losses were incurred in three out of the four most recent fiscal years. In response, on April 7, 2008, Axesstel submitted a plan of compliance to Amex. The plan of compliance outlined the actions Axesstel is taking to increase its profitability.
On May 2, 2008, Axesstel reported first quarter 2008 financial results demonstrating significant improvements over first quarter 2007 and fourth quarter 2007. First quarter of 2008 revenues were $24.6 million, including data products revenue of $13.6 million. This compares to first quarter of 2007 revenues of $25.2 million, including $5.1 million from data products, and fourth quarter of 2007 revenues of $13.8 million, including data products revenue of $9.2 million. Gross margin for the first quarter of 2008 was $6.6 million, or a record 27 percent of revenue, compared to $4.6 million, or 18 percent of revenue, for the same period last year and $2.9 million, or 21 percent of revenue, for the prior quarter. Net income for the first quarter of 2008 was $257,000 or $0.01 per diluted share, compared to a net loss of $1.2 million or $0.05 per share for the first quarter of 2007 and a net loss of $5.0 million or $0.22 per share for the fourth quarter of 2007.
On May 5, 2008, Amex notified Axesstel that Amex accepted the plan of compliance as it made a reasonable demonstration of Axesstel's ability to regain compliance with the continued listing standards by September 7, 2009. Accordingly, Axesstel was granted an extension until September 7, 2009 to regain compliance with the continued listing standards.
Axesstel is not currently in compliance with Amex continued listing standards and its listing on Amex is being continued pursuant to the extension granted following Amex's review of the plan of compliance discussed above. Axesstel will be subject to periodic review by Amex during the extension period. Continued listing on Amex is dependent upon making progress consistent with the plan of compliance or in regaining compliance with the continued listing standards by the end of the extension period.
ABOUT AXESSTEL, INC.
Axesstel (AMEX:AFT - News) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel's best in class product portfolio includes wireless web computers, broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for access to online computing, high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
© 2007 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.
Contact:
Investor Relations Contact:
Lippert / Heilshorn & Associates
Kirsten Chapman / Cathy Mattison, 415-433-3777
cmattison@lhai.com
--------------------------------------------------------------------------------
Source: Axesstel, Inc.
Axesstel Announces First Quarter 2008 Results
Friday May 2, 7:00 am ET
- Reports quarterly revenue of $24.6 million -
- Posts revenue records for data products and the EMEA region of $13.6 million and $8.5 million respectively -
- Reaches record gross margin of 27% -
- Delivers net income of $257,000 or $0.01 per share -
SAN DIEGO--(BUSINESS WIRE)--Axesstel, Inc. (AMEX:AFT - News), a recognized leader in the design and development of fixed wireless voice and broadband data products, announced results for the first quarter ended March 30, 2008.
ADVERTISEMENT
Clark Hickock, CEO of Axesstel, stated, “In 2008, we are executing our plan to increase sales from high-margin data products and target emerging markets such as Latin America and the Europe, Middle East, and Africa (EMEA) region. Our sales investments and cost restructuring have been validated. This quarter, revenues from data products increased 165 percent compared to the first quarter of 2007. We also reported record EMEA revenue of $8.5 million, growing 641 percent compared to $1.2 million in the 2007 first quarter. Combined with our cost reductions, we delivered profitability ahead of expectations, and we are committed to delivering profitability for the year.”
Financial Results
Revenues for the first quarter of 2008 were $24.6 million, including data products revenue of $13.6 million. This compares to revenues of $25.2 million, including $5.1 million from data products in the first quarter of 2007. Gross margin for the first quarter 2008 was $6.6 million, or a record 27 percent of revenue, compared to $4.6 million, or 18 percent of revenue, for the same period last year. Net income was $257,000 or $0.01 per diluted share, compared to a net loss of $1.2 million or $0.05 per share in the first quarter of 2007.
Pat Gray, Axesstel’s CFO, stated, “In the past few months, we have implemented specific programs to increase liquidity and improve operations. During the quarter, we secured a working capital line of credit with Wells Fargo. Also, we entered into a distribution agreement to support financing of receivables to Venezuela. These developments, in combination with strong collections, have enabled us to bring our manufacturing to normal operating levels.”
As of March 30, 2008, the cash and cash equivalents balance was $3.6 million, compared to cash and cash equivalents of $555,000 as of December 31, 2007. At March 30, 2008, the company had approximately $23 million in backlog of which $17 million is expected to be delivered in the second quarter.
Outlook
“This quarter’s results bolster our optimism about delivering sales growth and profitability in 2008. We continue to target over a dozen new product launches. At CTIA, we demonstrated our newly designed GSM phone and shipped our first volume order of the phones to Latin America during the quarter. Also at CTIA, we unveiled our new EV-DO product that combines voice and high-speed data, for which an operator in the EMEA region placed an advance order – a first in our company history. As such we are increasing our market penetration in emerging markets new to us, such as South Africa and Iraq, and building in regions where we already have a foothold, including Venezuela and Mexico. In Asia, we have multiple products in homologation, and looking ahead, we intend to invest in sales in Asia similar to our 2007 efforts that delivered record EMEA sales,” concluded Hickock.
The company continues to expect full year 2008 revenues to exceed $100 million, up from $82.4 million in 2007. Additionally, the company believes data products will contribute more than $60 million in revenues in 2008, up from $38.5 million in 2007, and will exceed phone revenues for the first time on an annualized basis. Product mix and customer demand can impact gross margin and profitability on a quarterly basis. However, based on its assessment of the market, management is optimistic about delivering gross margins in the low-20s and profitability for the year.
Recent Highlights
-- Named Clark Hickock CEO. With Axesstel since 2005 as COO, Hickock intends to methodically execute growth plans related to market expansion and product development.
-- Entered into a distribution agreement with Brightstar for Venezuela, which has the option to be expanded into other Latin American countries.
-- Completed working capital line of credit with Wells Fargo to support sales and manufacturing requirements.
-- Received first production order for approximately $2.6 million from PT Smart Telecom for USB modems.
-- Exhibited at the CTIA held April 1-3 in Las Vegas:
-- Unveiled the EV-DO product with voice and high-speed data capabilities.
-- Demonstrated the newly designed GSM fixed wireless phones and terminals.
-- Exhibited at the GSMS Mobile World Congress held Feb. 11-14 in Barcelona, Spain:
-- The newly designed GSM fixed wireless phones and terminals - the PG100 series, PG430, PG530 and TG230 - are generally available for order now.
-- The HSDPA models - the MD130, HSDPA USB modem that supports laptop or desktop users and the MD430, HSDPA Wi-Fi Gateways - are expected to be available for order in the second half of 2008.
Conference Call
Axesstel will host a conference call at 8:00 AM PT (11:00 AM ET) to discuss its first quarter 2008 results. Participating in the call will be Clark Hickock, chief executive officer, and Patrick Gray, chief financial officer.
The call is being webcast and can be accessed from the “Investor Relations” section of the company’s website at http://www.axesstel.com. Alternatively, you may dial the following number five to ten minutes prior to the scheduled conference call time: 1-877-663-9622. International callers should dial 001-706-634-9407. There is no pass code required for this call.
If you are unable to participate in the call at this time, the webcast will be archived on the Axesstel website. In addition, a telephonic replay will be available on Friday, May 2 at 2:00 PM ET through Tuesday, May 6, 11:59 PM ET. To access the replay, please dial 1-800-642-1687. International callers should dial 001-706-645-9291. The pass code is 43002682.
ABOUT AXESSTEL, INC.
Axesstel (AMEX:AFT - News) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel’s best in class product portfolio includes broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California, with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
(C) 2008 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements relating to market penetration and conditions, product capabilities and the timing of new product introductions which may affect future results and the future viability of Axesstel. Axesstel wishes to caution readers that actual results could differ materially from those suggested by the forward-looking statements due to risks and uncertainties and a number of important risk factors. Those factors include but are not limited the risk factors noted in Axesstel's filings with the Securities and Exchange Commission, such as to the need for additional working capital; economic and political instability in developing markets served by Axesstel; unforeseen manufacturing difficulties, unanticipated component shortages, competitive pricing pressures and the rapidly changing nature of technology and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; product and customer mix; Axesstel's need to gain market acceptance for its products; dependence on a limited number of large customers; potential intellectual property-related litigation; Axesstel's need to attract and retain skilled personnel; and Axesstel's reliance on its primary contract manufacturer. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axesstel undertakes no obligation to revise or update this press release to reflect events or circumstances occurring after this press release.
AXESSTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
March 30, 2008 March 31, 2007
Net revenues $ 24,636,937 $ 25,189,776
Cost of goods sold 18,034,479 20,618,273
Gross margin 6,602,458 4,571,503
Operating expenses:
Research and development 1,100,767 1,892,205
Selling, general and administrative 4,706,290 3,893,995
Total operating expenses 5,807,057 5,786,200
Operating income (loss) 795,401 (1,214,697 )
Other income (expense):
Interest and other income 29,888 16,630
Interest and other expense (568,631 ) (50,868 )
Total other income (expense) (538,743 ) (34,238 )
Income (loss) before provision for income taxes 256,658 (1,248,935 )
Provision for income taxes - -
Net income (loss) 256,658 (1,248,935 )
Earnings (loss) per share:
Basic $ 0.01 ($0.05 )
Diluted $ 0.01 ($0.05 )
Weighted average shares outstanding:
Basic 23,228,982 22,867,552
Diluted 23,280,059 22,867,552
AXESSTEL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
ASSETS
March 30, 2008
December 31, 2007
Current assets:
Cash and cash equivalents
$
3,571,650
$
555,301
Accounts receivable, net
25,807,751
20,801,710
Inventory 2,016,040 2,535,433
Prepayments and other current assets 1,524,450
1,295,697
Total current assets 32,919,891
25,188,141
Property and equipment, net 1,511,344
1,694,493
Other assets:
License, net 1,483,088 1,609,304
Other, net 716,266 871,059
Total other assets 2,199,354 2,480,363
Total assets $ 36,630,589
$ 29,362,997
LIABILITIES AND STOCKHOLDERS' EQUITY
March 30, 2008 December 31, 2007
Current liabilities:
Accounts payable $ 23,279,833
$ 22,619,976
Bank financing 2,585,478 490,000
Customer advances 381,560 286,806
Note payable 3,629,000 -
Accrued commissions 2,378,190 1,645,099
Accrued royalties
1,277,000 767,000
Accrued warranties
460,000 460,000
Accrued expenses and other current liabilities 1,221,099
1,818,279
Total current liabilities 35,212,160
28,087,160
Stockholders' equity 1,418,429 1,275,837
Total liabilities and stockholders' equity $ 36,630,589 $ 29,362,997
Contact:
Investor Relations Contact:
Lippert/Heilshorn & Associates
Kirsten Chapman/Cathy Mattison, 415-433-3777
cmattison@lhai.com
--------------------------------------------------------------------------------
Source: Axesstel, Inc.
Nice breakout today on some above average volume. No news that I can find, so something must be up.
Maybe earnings are going to better that first thought.....
Looks like we are beaking out of resistance today with some volume.
Very nice!!
Form 8-K for AXESSTEL INC
--------------------------------------------------------------------------------
26-Feb-2008
Results of Operations and Financial Condition, Financial Statements and Exhibits
Item 2.02. Results of Operations and Financial Condition.
On February 26, 2008, Axesstel, Inc. ("Axesstel") issued a press release reporting its financial results for the year and quarter ended December 31, 2007. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information contained in this Item 2.02 and in the accompanying exhibit shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is filed herewith:
Exhibit
Number Description
99.1 Press release issued by Axesstel on February 26, 2008 reporting
Axesstel's financial results for the year and quarter ended
December 31, 2007.
RSS info
The RSS URL for iHub - Wealth University is:
http://investorshub.advfn.com/boards/rss.asp?board_id=10933
Want to add this RSS board feed to your own website? Just copy the code in the box directly into the HTML of your website. It uses basic Javascript.
<script language=JavaScript src=http://convert.rss-to-javascript.com/?chan=1&simple_chan=1&date=1&num=25&src=http://investorshub.advfn.com/boards/rss.asp?board_id=10933></script><noscript>Your browser does not support JavaScript. <a title='RSS-to-JavaScript.com: Free RSS to JavaScript Converter' href=http://www.rss-to-javascript.com/?p=151,381&chan=1&simple_chan=1&date=1&num=25&src=http://investorshub.advfn.com/boards/rss.asp?board_id=10933&as_html=1>Click to read the latest news</a>.</noscript> <a href=http://www.rss-to-javascript.com target=_blank title='RSS-to-JavaScript.com: Free RSS to JavaScript Converter'><img src=http://www.rss-to-javascript.com/images/rss-to-jss-small.gif alt='RSS to JavaScript' border=0></a>