57% Gross Margins !!!
Pervasip's CEO, Paul Riss, noted, "In the second quarter, we saw incremental
positive trends in our business metrics and momentum from the investments we've
made in new product development that have led to our ability to raise additional
growth capital from our primary lender and the successful restructuring of
certain of our debts in the third quarter. Our second quarter gross margin was
the highest quarterly margin in more than a dozen quarters, and our year-to-date
reduction in total liabilities exceeded $3.1 million. With our focus now on
capitalizing on these metrics and the renewed commitment from our lender, it is
our third quarter that brings us the most excitement."
In the third quarter the Company began selling calling cards, submitted its
mobile VoIP app to the Apple app store, and put in place new marketing
initiatives. "We expect our iPhone app to complete the Apple review process
shortly," continued Riss, "at which time users will be able to download the Pay
and Go app on iPhones and iPads. This is exciting because users will be able to
make free app-to-app voice and video calls across Android and Apple devices, as
well as very inexpensive international calls to landlines and mobile phones."
During the third quarter, the Company also instituted a plan focused on
achieving positive cash flow from operations by Q1 2014. The plan includes
certain overhead reductions, a focus on driving new business through sales
efforts in the calling card channel, and an increase in marketing spend to drive
awareness and sales of apps. Riss stated, "We are pleased that we've been able
to attain the #1 position on the Google Play store for VOIP searches from
consumers with very little marketing spend to-date. We have high hopes that a
focused marketing effort will allow us to achieve a similar position within
iTunes once our app is available for download."
"We had a healthy gross margin of 57% in the second quarter," continued Riss.
"We are all working together to create value by offering our product to iPhone
users, Android users, calling cards customers and wholesale accounts."
