Revenues for the three months ended September 30, 2007 were $509,190 compared to revenues of $387,994 for the corresponding period in 2006. This increase of $121,196, or 31.2%, was principally attributable to increased revenues from VeriSign, its principal TeleBlock distributor. Revenues from VeriSign comprised 87.6% and 83.2% of the Company’s third quarter revenues for 2007 and 2006, respectively. An increase of 46 million call counts for its TeleBlock service increased the Company’s revenues by $109,514 for the second quarter; the Company also generated additional revenue of $31,553 from other revenue sources including its online guides, VoIP services, and its new product, Enhanced Caller ID.
The Company is encouraged by recent sales gains and reductions in its operating shortfall of gross margin to selling, general and administrative expenses. Under favorable sales, cost and expense projections, the Company anticipates its operations may become cash-flow neutral during the second quarter of fiscal 2008.
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