Click here to close now.




















Welcome!

News Feed Item

Tellza Announces 2014 Q2 Financial Results

Revenue for the six months ended June 30th climbs to $124M USD

TORONTO, ONTARIO -- (Marketwired) -- 07/25/14 -- Tellza Communications Inc. (TSX:TEL) announced its unaudited financial results for the six months ended June 30, 2014.

Revenue was $124 Million USD compared to $74.0 Million USD in Q2 of 2013, representing growth of 68%. Net Income was $0.5 million USD, compared to net income of $1.2 million USD in Q2 of 2013. Year to date EBITDA(i) in 2014 was $1.5 million USD compared to $2.1 million USD in Q2 of 2013, a decrease of 29%. The reduction in EBITDA is related to tighter margins in our core business, start-up costs related to routedynamix and acquisition costs related to the MatchcoM acquisition which was completed in February 2014.


                    CONSOLIDATED STATEMENTS OF OPERATIONS                   
    (amounts in thousands of U.S. dollars, except per share information)    
                                                                            
For the three and six months                                                
 end June 30th,                     2014        2013        2014        2013
                                       $           $           $           $
                            ------------------------------------------------
                             (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                                                                            
Revenue                           72,766      39,792     124,132      73,842
Cost of revenue                   70,730      37,403     120,006      69,833
                            ------------------------------------------------
Gross margin                       2,036       2,389       4,126       4,009
                            ------------------------------------------------
                                                                            
Operating expenses                 1,363       1,037       2,653       1,913
Depreciation of property and                                                
 equipment                            73          32         147          62
Amortization of intangible                                                  
 assets                              280         103         575         209
Stock-based compensation               3          13           6          26
Minority Interest                     16           -          16           -
Interest and debt costs              -18           4           0          16
                            ------------------------------------------------
                                   1,717       1,189       3,397       2,226
                            ------------------------------------------------
Income before income taxes           319       1,200         729       1,783
                            ------------------------------------------------
Provision for (recovery of)                                                 
 income taxes                                                               
  Current                              -           -           -           -
  Deferred                           115         396         235         575
                            ------------------------------------------------
                                     115         396         235         575
                            ------------------------------------------------
Net and comprehensive income                                                
 for the period                      204         804         494       1,208
                            ------------------------------------------------
Earnings per share                                                          
  - basic and diluted               0.00        0.01        0.00        0.01
                            ------------------------------------------------
                                                                            
Weighted-average number of                                                  
 common shares                                                              
  - basic and diluted        187,713,991 151,231,492 186,300,822 151,231,492
                            ------------------------------------------------

Tellza completed Q2 - 2014 with $2 Million USD in cash and available borrowings of $3.6 Million. Since 2011, Tellza has generated $11.2 Million USD in Cash Profits(i) that have been utilized as set out in the following table: http://media3.marketwire.com/docs/TEL%20Tables.pdf

"We are excited with our progress in 2014, despite narrowing margins," said Gary Clifford, Executive Chairman. "We expect profits to grow in the second half of the year, as routedynamix (SMS platform) commercializes and we complete the migration of our networks across all of our portfolio businesses."

The Company's financial statements and other disclosures are available on SEDAR.

The Company's corporate profile is located at www.tellza/investors.

About Tellza

Tellza is a global communications company operating under several brands including Route Dynamix, Phonetime, Tel3, MatchCom and Tellza Technologies. Tellza is a public company listed on the Toronto Stock Exchange (TEL).

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Tellza's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See www.sedar.com which contains all securities files.

(i)We define EBITDA and Cash Profits as earnings before taxes, depreciation and amortization, stock based compensation, and interest. EBITDA, which is a non-GAAP financial measure, it is a standard measure used in the telecommunications industry to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meaning under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating as such measures may differ among companies and analysts. Below is a reconciliation of "EBITDA" to net income for the periods presented:


                                                           YTD   Cumulative 
                                                                2011 - 2014 
EBITDA Reconciliation        2011    2012     2013   2014 - Q2           Q2 
                           ------- ------- ------- ----------- -------------
                                $       $        $           $            $ 
Net Income before tax       2,802   2,321    3,236         729        9,088 
Interest and debt costs       338     160       33           0          531 
Stock-based compensation      113      53       12           6          184 
Amortization of intangible                                                  
 assets                     1,056     850      556         575        3,037 
Depreciation of property                                                    
 and equipment                517     120      127         147          911 
Gain on retirement of debt      -    (260)       -           0         (260)
Mark to fair value of                                                       
 common share warrants     (2,290)     (1)       -           0       (2,291)
                           -------------------------------------------------
EBITDA (Cash Profits)       2,536   3,243    3,964       1,457       11,200 
                           -------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Scrum Alliance has announced the release of its 2015 State of Scrum Report. Almost 5,000 individuals and companies worldwide participated in this year's survey. Most organizations in the market today are still leading and managing under an Industrial Age model. Not only is the speed of change growing exponentially, Agile and Scrum frameworks are showing companies how to draw on the full talents and capabilities of those doing the work in order to continue innovating for success.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at @DevOpsSummit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, presented a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mocku...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Graylog, Inc., has added the capability to collect, centralize and analyze application container logs from within Docker. The Graylog logging driver for Docker addresses the challenges of extracting intelligence from within Docker containers, where most workloads are dynamic and log data is not persisted or stored. Using Graylog, DevOps and IT Ops teams can pinpoint the root cause of problems to deliver new applications faster and minimize downtime.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.