Positive gross margins/55% reduction in Losses!
VoIP, Inc. Reports Second Quarter Results
Notes Both Consistent Margin Improvements and Declining Losses
ORLANDO, Fla., Aug. 15 /PRNewswire-FirstCall/ -- VoIP, Inc. (OTC Bulletin Board: VOII), a leading provider of Voice over Internet Protocol (VoIP) communications solutions for service providers, resellers and consumers, today announced financial results for its second quarter ending June 30, 2006. Highlights for the quarter include:
* The 2nd quarter 2006 results represent a more than 55% reduction in
losses with a reported net loss of $6.1 million as compared to the 1st
quarter 2006 loss of $13.8 million.
* The Company has demonstrated a continuing trend of reduction in its
overall loss for three consecutive quarters, beginning with the 4th
quarter 2005 net loss of $14.5 million.
* Approximately $10 million (50%) of the six-month loss was non-cash
(including stock/option compensation expense, depreciation,
amortization and other non-cash expenses).
* 2nd quarter 2006 produced positive gross margin of $230,000
(+3% of sales) -- first positive gross margin reported by company in
past four (4) quarters.
* The 2nd quarter 2006 results show a continuing improvement trend in
gross margins for three consecutive quarters with current 2nd quarter
gross margins at +3% versus -6% of sales (-$619,000) in 1st quarter
2006 and -7.2% of sales (-$708,000) in 4th quarter 2005.
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