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
                           -------------------------------------------------

Contacts:
Tellza Communications Inc.
Gary Clifford
Executive Chairman & CEO
+647 281 1831
[email protected]

Tellza Communications Inc.
Michael Vazquez
President
+954-608-5058
[email protected]

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
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, addressed this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of the ...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo at the Javits Center in New York City, NY.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...