Pervasip Corp (PVSP)

[Bjones2]

Pervasip Corp. Reports First Quarter Results
Press Release: Pervasip Corp. – 6 minutes ago

Symbol Price Change
PVSP 0.003 -0.0003

WHITE PLAINS, N.Y., April 23, 2013 /PRNewswire/ -- Pervasip Corp. (PVSP)
Summary of Recent Accomplishments:
Quarterly net income of $2.3 million

Gross margin of 54%
$4.6 million improvement in working capital deficiency over the past three months
Significant reductions in short-term debt, interest expense and SG&A expense
Pervasip Corp. (the "Company"), a cloud-based voice and video communications solutions, apps and services provider, today reported earnings for the quarter ended February 28, 2013.
Net income for the quarter ended February 29, 2012 was $2,312,699, or $0.01 per basic share and $0.00 per diluted share, compared to $3,206,757, or $0.03 per basic share and $0.02 per diluted share, in the first quarter of 2012.

The gross margin for the quarters ended February 28, 2013 and February 29, 2012, was approximately the same for both periods at 54% and 55%, respectively. The slight decrease in the gross profit percentage is attributable to the increased number of free subscribers utilizing the VoX mobile VoIP app. To attract retail customers, the Company offers calling rates that are steeply discounted in comparison to wireless carriers and several calling plans with free minutes or a free month of service.

The Company's working capital deficiency decreased from $11,816,538 at November 30, 2012 to $7,162,293 at February 28, 2013, an improvement of $4,654,245. Short-term debt decreased from $7,444,490 at November 30, 2012 to $2,765,299 at February 28, 2013, an improvement of $4,679,191.

Interest expense decreased by $914,896, to $163,570 for the three months ended February 28, 2013, as compared to $1,079,466 for the three months ended February 29, 2012, due to lower debt levels and interest rates.

Selling, general and administrative expenses decreased by $353,442, or approximately 48%, to approximately $380,549 for the three-month period ended February 28, 2013 from approximately $733,691 reported in the same prior-year fiscal period.
"We are pleased that we have experienced considerable improvement in our balance sheet and income statement," said Paul Riss, Pervasip's CEO. "The decreased interest expense is noteworthy and we continue to successfully reduce our debt."
"We consistently see growth in downloads, installs and purchases of our mobile VoIP app," continued Riss. "Like many of the elite app companies, we see hundreds of downloads and installs each day. Unlike many other app companies, we also have a revenue-generating app, for which we are collecting approximately 20 payments each day, in the month of April. We anticipate the imminent release of our iPhone app will double our number of paid subscribers."
For additional disclosure regarding operating results, refer to the Quarterly Report on Form 10-Q for the period ended February 28, 2013, which has been filed with the Securities and Exchange Commission.
The Company's Android app can be downloaded directly from Google Play (https://play.google.com/store/apps/details?id=net.voxcorp).