Losing money? Ummm here's some info for you.
PVSP Second Quarterly Report Summary
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."
Net income for the six months ended May 31, 2013 was $1,876,233, or $0.00 per basic and diluted share, compared to a net income of $4,385,498, or $0.03 per basic and $0.02 per diluted share, for the six months ended May 31, 2012.
Net loss for the quarter ended May 31, 2013 was $436,466, or $0.00 per basic and diluted share, compared to net income of $1,178,741, or $0.01 per basic and diluted share in the second quarter of 2012.
The Company's gross profit percentage increased 10 percentage points to 57% for the three-month period ended May 31, 2013, as compared to 47% for the three-month period ended May 31, 2012. The increase in second quarter gross profit lifted the gross profit percentage for the six-months ended May 31, 2013 to 55%, an increase of 4 percentage points over the 51% margin earned in the six-month period ended May 31, 2012.
The Company decreased its total liabilities by approximately $3,180,000 at May 31, 2013, as compared to November 30, 2012, primarily due to a negotiated debt reduction plan, which resulted in a gain from troubled debt restructuring of $2,714,461 for the six months ended May 31, 2013
For additional disclosure regarding operating results, refer to the Quarterly Report on Form 10-Q for the period ended May 31, 2013, which has been filed with the Securities and Exchange Commission.
News 
Market Data 
Discover 
AI
