GlobeTel Communications Projects Record Revenue For 2005 Third Quarter; Company Provides Update on Current Business Activities and Recent Developments
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Sept. 23, 2005--GlobeTel Communications Corp. (AMEX:GTE) today announced it expects to achieve record revenue of approximately $22 million for the third quarter ending September 30, 2005, an expected 193% increase from the third quarter last year.
Timothy Huff, GlobeTel Chief Executive Officer, said, "Our anticipated record revenue for the 2005 third quarter reflects the significant progress management has made in the execution of our strategic business plan. We currently have record cash on hand, our top line is growing along with our margins, we are hiring key personnel around the globe as our five business units continue to expand, and we have had a prominent international figure recently sign on as our new Chairman of the Board. In addition, our technology in our SIP-based products, Magic Money, GlobeTel Wireless and Sanswire, continues to improve and stay ahead of the 'tech' curve, effectively strengthening our commercial prospects with various government and commercial entities.
"For the fiscal 2005 fourth quarter, we anticipate gross margins in the range of 3%-5%. The relocation of our new telecommunications facility in Los Angeles, completed in August, will significantly improve gross margins as we now handle carrier traffic through our own network as opposed to using a third party."
Mr. Huff concluded, "I would like to state clearly to our 35,000-plus shareholders that GlobeTel has never been in a better position to realize substantial long-term growth than it is right now. Many shareholders have asked why then has GlobeTel's recent stock performance been so inconsistent with the company's positive growth trends. While it is difficult to attribute stock movement to any one factor, the fact remains GlobeTel's short position has climbed to approximately 3.4 million shares. We believe we are the target of certain market makers that use our stock as a short-term instrument for profit at the expense of our long-term investors who believe in our company's vision. We are confident the activities of our company will enhance shareholder value, leading to less volatility and greater market appreciation. GlobeTel's fundamentals remain sound as the company continues to perform. We firmly believe our future is bright and look forward to reporting third quarter results toward the end of next month and providing future updates on our Stratellite program, as well as other corporate developments, as they become available."
About GlobeTel Communications Corp.
GlobeTel is a diversified, global Telecommunications and Financial Services Company. GlobeTel operates business units in (i) Stored Value & Remittance Cards as a MasterCard certified processor (ii) VoIP Carrier Grade Long Distance Services to major long-distance companies (iii) VoIP development, technology and equipment manufacturing (iv) advanced WiMax services utilizing GlobeTel's proprietary "Hotzone" technology and (v) the development, manufacturing, marketing and provision of near-space platforms known as Stratellites which will soon seamlessly integrate all of GlobeTel's communications and financial services technologies around the world.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. The words: "forecast", "project", "intend", "expect", "should", "would", and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements. The above are more fully discussed in the Company's SEC filings. GlobeTel and its strategy for launching the Stratellite may vary as conditions and technology changes. There is the possibility that parts of the process may change or be delayed. While GlobeTel plans for the success of the airship, there is no guarantee that it will achieve any or all of its objectives. Any reference within this release that refers or implies a forward-looking statement, is herewith incorporated into this Safe Harbor language.
