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CLIENT FEATURE: Virtutone (VFX: TSX-V) Generates $11.4M in Revenues for August

Posted by AGORACOM-JC at 12:23 PM on Friday, October 24th, 2014

FINANCIAL HIGHLIGHTS

  • Company has generated approximately $11.4 million in revenue for the month of August.
  • $48.8M in Revenues for the Year Ended Jan 31, 2014
  • Revenue from continuing operations was $48,823,653
  • Gross profit increased to $1,562,478

WHY VIRTUTONE NETWORKS?

  • Company has purchased five key underlying customers of its largest customer. Adding these key customers will ensure that no one customer represents more than 25% of the Company’s total revenue

  • Recently launched a new Wholesale SMS Division to compliment its current wholesale long distance business
  • Opportunity to be a niche player in the wholesale SMS/MMS hubbing business

RECOGNITION

  • Ranked #1 fastest growing ICT company in Canada 2012
  • “Next 50 ICT Companies” in Canada Branham 2013

At Virtutone the signal is clear.

VoIP Origination

Virtutone Networks provides wholesale origination services from one of the largest footprints in North America. Virtutone also provides international origination services from 73 different countries, with new countries being added weekly. View Origination Services

SIP Trunking

By creating virtual phone lines and linking your various office locations, this innovative solution allows your business to replace costly ISDN PRIs and traditional lines with a simplified infrastructure that can reduce your costs. View SIP Trunking Services

VoIP Termination

Virtutone Networks provides wholesale termination services to telephone companies, VoIP carriers, call centres, satellite service providers, teleports, cable television networks, cellular carriers and managed IT service providers. View Termination Services

Our Network

Virtutone’s business class VoIP Network is designed to provide high performance and scalability at a low unit cost. Virtutone’s VoIP and FoIP network includes POP’s in Canada, United States, Australia and the United Kingdom. View Our Network

Virtutone Networks Featured on Episode 22 of the Next Biggest Winner TV Show

Virtutone Featured On BNN Market Call

Virtutone Announces Closing of Acquisition of Customer Base and New Revenues

Posted by AGORACOM-JC at 7:49 PM on Monday, August 11th, 2014

Sherwood Park, Alberta / August 11th, 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that it anticipates, subject to TSX Venture Exchange approval, the completion of a its previously announced acquisition of certain assets, or underlying customers, from its largest customer in an effort to diversify the Company’s customer base.

Virtutone has purchase five key underlying customers of its largest customer, as previously announced Adding these assets will improve the proportional balancing of the Company’s total revenue.

In addition to the diversification, Virtutone plans to take over an additional $1.2 million in revenues per month at a gross margin of approximately 3% ($36,000 per month of additional margin) as a part of the acquisition.

In connection with the acquisition, Virtutone projects the issuance of one million shares for this transaction for a deemed value of $260,000.

This previously announced asset acquisition was subject to performance criteria, which has been met, however the asset acquisition remains subject to approval by the TSX Venture Exchange.

For further information, please contact Jason Allen at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park, Alberta and is listed on the TSX Venture Exchange in Canada. The Company is a leading supplier of wholesale telecommunication services. Additional information can be found on the Company’s website at www.virtutone.ca.

This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts and the sustainability of the new revenue stream. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Virtutone Announces Record Revenues of $15.8 Million for the Month of July

Posted by AGORACOM-JC at 9:35 AM on Wednesday, August 6th, 2014

Sherwood Park, Alberta / August 6th, 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that the Company has generated over $15.8 million in revenue for the month of July.

“Our revenues have been stable for the past 3 months and now with the new line of credit, we are anticipating another jump in revenues this fall” said Jason Allen, Chief Executive Officer of Virtutone. ” Even without the additional line of credit in place, our team was able to generate another record month”

For further information please contact Jason Allen at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The company is a leading supplier of managed telecommunication services, including: Voice over IP services, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products. Additional information can be found on the company’s website at www.virtutone.com.

This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under of any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts; timing and completion of the transition of new voice traffic; the sustainability of the new revenue stream; increased leverage with suppliers; additional deals currently being worked on and the impact thereof; and negotiations relating to potential new customers. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company. As these contracts do not contain any minimum traffic requirements, revenue generated on such contracts will vary from month to month, and such variations may be material. The Company cannot provide any assurances as to the revenues to be generated by such contracts once the transition is complete.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Virtutone Announces New $10 Million USD Line of Credit With a Tier One U.S. Bank

Posted by AGORACOM-JC at 1:07 PM on Monday, July 21st, 2014

Sherwood Park, Alberta / July 21st, 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that it has secured a new $10 million line of credit with a tier one U.S. bank.

The line of credit is a one-year renewable term at a rate of prime plus 1.5% per annum. The facility is based on 85% of good accounts receivable.

“This new facility will significantly increase our revenues and goes a long way to helping us meet and potentially exceed our financial projections for this year,” said Jason Allen, Chief Executive Officer. “It will also substantially lower our cost of capital and therefore help drive profitability. We see a lot of attractive business that, prior to obtaining this line, we were unable to land, so we will have no trouble deploying this capital to the benefit of our shareholders.

“We are pleased to be working with this new bank, which understands our business and is willing to work with us to grow it. Although it took longer than we expected to find the right lending partner, finding this one has made the wait worthwhile.”

With this new line of credit, the Company has declined the previously announced $7.5 million credit facility on November 1st, 2013, as the cost of the capital was very high, and had restrictive terms. The Company required a larger and more long-term partnership providing the Company with more flexibility and a lower cost of capital.

For further information please contact Jason Allen at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The company is a leading supplier of wholesale telecommunication services, serving as an intermediary between large carriers and local telephone companies in many countries worldwide. Over the years, Virtutone has built lasting and secure business relationships with a number of key strategic partners.

We pride ourselves in providing unsurpassed service to customers and suppliers worldwide. Our customers choose us for three primary reasons: quality voice services, competitive rates, and superior customer service.

Additional information can be found on the company’s website at www.virtutone.com.

This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under of any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts; timing and completion of the transition of new voice traffic; the sustainability of the new revenue stream; increased leverage with suppliers; additional deals currently being worked on and the impact thereof; and negotiations relating to potential new customers. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company. As these contracts do not contain any minimum traffic requirements, revenue generated on such contracts will vary from month to month, and such variations may be material. The Company cannot provide any assurances as to the revenues to be generated by such contracts once the transition is complete.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Virtutone Announces $14.3 Million in Revenues for the Month of June

Posted by AGORACOM-JC at 11:58 AM on Friday, July 4th, 2014

Sherwood Park, Alberta / TNW-ACCESSWIRE / July 4th , 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that the Company has generated over $14.3 million in revenue for the month of June.

“We are down slightly this month due to the rise in the Canadian dollar, as our sales are all in USD and only 30 days in the month” said Jason Allen, Chief Executive Officer of Virtutone. “We continue to deliver strong results each and every month.”

For further information please contact Jason Allen at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The company is a leading supplier of managed telecommunication services, including: Voice over IP services, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products. Additional information can be found on the company’s website at www.virtutone.com.

This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under of any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts; timing and completion of the transition of new voice traffic; the sustainability of the new revenue stream; increased leverage with suppliers; additional deals currently being worked on and the impact thereof; and negotiations relating to potential new customers. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company. As these contracts do not contain any minimum traffic requirements, revenue generated on such contracts will vary from month to month, and such variations may be material. The Company cannot provide any assurances as to the revenues to be generated by such contracts once the transition is complete.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Virtutone Networks Announces First Quarter Record Breaking Revenues of $28.4 million

Posted by AGORACOM-JC at 3:11 PM on Wednesday, July 2nd, 2014

Virtutonelarge_copy

Sherwood Park, AB July 2, 2014 / Virtutone Networks Inc. (VFX.V) has released its unaudited financial results for the first quarter ended April 30, 2014.Mr. William Woods reports:

“We are pleased with the continued progress made during the first quarter 2014, as sales revenues recorded were at record highs of $28.4 million.

Revenue from continuing operations increased by $25,164,768 to $28,362,967 for the first quarter ending April 30, 2014 compared to the first quarter ended April 30, 2013. Gross profit increased by $774,710 to $951,676 and expenses increased by 658,400 to $839,476 compared to the first quarter ended April 30, 2013.

Net income increased by $79,222 to $33,797 for the first quarter ending April 30, 2014 compared to the first quarter loss of $45,425 ended April 30, 2013.

The increase growth of the revenues are the direct results of the dedicated efforts of the company’s focus on the wholesale business. The dedicated efforts have resulted in higher operational costs, yet the company reported its highest net income for a quarter. The company continues the dedicated efforts to increase sales while focusing its efforts to increase its net income quarter over quarter.

These financial results are presented in conformance with International Financial Reporting Standards (“IFRS”). Certain comparative figures have been restated to conform with the current year’s presentation. The Corporation’s retails division has been presented as loss from discontinued operations. All figures are in Canadian dollars unless otherwise noted. Certain operational measures such as “Adjusted EBITDA” and “Adjusted EBITDA from continuing operations” are not prescribed measures under IFRS. For a description of these measures, see the Operations and Non-IFRS Measures section in Virtutone’s 2014 fiscal year Management Discussion and analysis. The Company’s exclusive focus on its wholesale division has driven the increased revenue, gross profit and income from continuing operations.

Financial Table for the First Quarter Ended April 30, 2014 compared to April 30, 2013

2014 2013 Change %
Revenue $28,362,967 $3,198,199 $25,164,788 763
Gross Profit $951,676 $176,966 $774,710 438
Expenses $839,476 $181,076 $658,400 363
Net Income (loss) $33,797 ($45,425) 79,222 174

Outlook:

Virtutone, through its wholesale market focus, is well positioned for growth. The Company’s wholesale division continues to achieve new milestones. The Company has tested and installed new software subsequent to year end that optimizes the Company’s voice traffic, resulting in increased margins. The Company recently announced the launch of its Short Message Service (SMS) division and expects the division to contribute to revenue and gross profit. The Company will seek financing through increases to existing debt facilities and new debt and/or equity financings in order to fund its growing working capital needs. The outcome of the Company’s financing efforts cannot be predicted at this time. The Company’s annual financial statements, management discussion and analysis, and other disclosures are available on SEDAR.

We seek Safe Harbor

Bill Woods, CMA

Chief Financial Officer

Virtutone Announces Record Revenues of $14.9 Million for the Month of May

Posted by AGORACOM-JC at 9:19 AM on Monday, June 2nd, 2014

Sherwood Park, Alberta / June 2nd , 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that the Company has generated over $14.9 million in revenue for the month of May.

“May was an incredible month for us with a growth of 30% over the month of April” said Jason Allen, Chief Executive Officer of Virtutone. “Our team has done an exceptional job in managing this growth over the past year”

We are please to announce the appointment of William (Bill) Woods, Virtuone’s new Chief Financial Officer. Bill has over 15 year experience in CFO roles with various TSX and TSXV companies, in both the United States and Canada. “We would like to welcome Bill to the team” said Jason Allen, Chief Executive Officer of Virtutone. “We would also like to thank Sergio Valacco, for stepping in while we searched for our long-term CFO that will help take the company to the next level.”

For further information please contact Jason Allen at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The company is a leading supplier of managed telecommunication services, including: Voice over IP services, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products. Additional information can be found on the company’s website at www.virtutone.com.

This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under of any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts; timing and completion of the transition of new voice traffic; the sustainability of the new revenue stream; increased leverage with suppliers; additional deals currently being worked on and the impact thereof; and negotiations relating to potential new customers. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company. As these contracts do not contain any minimum traffic requirements, revenue generated on such contracts will vary from month to month, and such variations may be material. The Company cannot provide any assurances as to the revenues to be generated by such contracts once the transition is complete.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Virtutone Announces $11.5 Million in Revenues for the Month of April

Posted by AGORACOM-JC at 9:21 AM on Thursday, May 1st, 2014

Sherwood Park, Alberta / May1st, 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that the Company has generated over $11.5 million in revenue for the month of April.

“Our team has delivered once again another record month with solid margins, we are back to our aggressive growth” said Jason Allen, Chief Executive Officer of Virtutone. “We have seen several record breaking revenue days in the month of April, which resulted in our largest month ever.”

For further information please contact Jason Allen at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The company is a leading supplier of managed telecommunication services, including: Voice over IP services, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products. Additional information can be found on the company’s website at www.virtutone.com.

This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under of any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts; timing and completion of the transition of new voice traffic; the sustainability of the new revenue stream; increased leverage with suppliers; additional deals currently being worked on and the impact thereof; and negotiations relating to potential new customers. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company. As these contracts do not contain any minimum traffic requirements, revenue generated on such contracts will vary from month to month, and such variations may be material. The Company cannot provide any assurances as to the revenues to be generated by such contracts once the transition is complete.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Virtutone Generates $48.8M in Revenues for the Year Ended Jan 31, 2014

Posted by AGORACOM-JC at 9:35 AM on Monday, April 28th, 2014

 

Sherwood Park, Alberta / April 28th, 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) today announced its audited financial results for the year ended January 31, 2014.

“We are pleased with the progress we made in 2014, with the sale of our retail division and our focus on wholesale market, which has resulted in tremendous growth in our revenue, gross profit, and income from continuing operations. We are confident that we have the foundation in place to support our continued growth,” said Jason Allen, Virtutone’s CEO.

The Company’s complete Annual Financial Statements, Management Discussion and Analysis, will be filed on SEDAR (www.sedar.com) on April 28, 2014.

Financial Highlights


Click Image To View Full Size

These financial results are presented in conformance with International Financial Reporting Standards (“IFRS”). Certain comparative figures have been restated to conform with the current year’s presentation. The Corporation’s retails division has been presented as loss from discontinued operations. All figures are in Canadian dollars unless otherwise noted. Certain operational measures such as “Adjusted EBITDA” and “Adjusted EBITDA from continuing operations” are not prescribed measures under IFRS. For a description of these measures, see the Operations and Non-IFRS Measures section in Virtutone’s 2014 fiscal year Management Discussion and analysis.

During the year ended January 31, 2014, the Company sold its retail division, and financial results from this division for the years ended January 31, 2014 and 2013 have been classified as discontinued operations. The Company’s exclusive focus on its wholesale division has driven the increased revenue, gross profit and income from continuing operations.

Revenue from continuing operations was $48,823,653 compared to $416,502 in fiscal 2013. Gross profit increased by $1,707,754 to $1,562,478 and income from continuing operations increased by $680,319 to $90,990 over the prior year.

Net loss was slightly higher due mainly due to expenses related to the discontinued retail operations offset by earnings from continuing operations.

Fourth Quarter Highlights

Revenue from continuing operations was $25,125,266 for the three month period ended January 31, 2014.

This revenue was offset by cost of sales in the amount of $24,337,271 and resulted in a gross profit before expenses of $787,995. Total revenue from continuing operations for the three month period ended January 31, 2013 was $106,103 and gross loss before expenses was $39,875. G&A expenses have been allocated on a

percentage basis between the wholesale and retail divisions. A comparison of G&A between the three month periods ending January 31, 2014 and 2013 would therefore not allow for a proper analysis.

Outlook

Virtutone, through its wholesale market focus, is well positioned for growth:

  • The Company’s wholesale division continues to achieve new milestones.

-The Company has tested and installed new software subsequent to year end that optimizes the Company’s voice traffic, resulting in increased margins.

-The Company recently announced the launch of its Short Message Service (SMS) division and expects the division to contribute to revenue and gross profit.

-The Company will seek financing through increases to existing debt facilities and new debt and/or equity financings in order to fund its growing working capital needs. The outcome of the Company’s financing efforts cannot be predicted at this time.

The Company’s annual financial statements, management discussion and analysis, and other disclosures are available on SEDAR.

For further information please contact Sergio Valacco at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park, Alberta and is listed on the TSX Venture Exchange in Canada. The company is a leading supplier of wholesale telecommunication services. Additional information can be found on the company’s website at www.virtutone.com.

Forward Looking Information

This document may contain certain forward-looking information or statements (“Forward- looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under of any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts; timing and completion of the transition of new voice traffic; the sustainability of the new revenue stream; increased leverage with suppliers; additional deals currently being worked on and the impact thereof; and negotiations relating to potential new customers. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company. As these contracts do not contain any minimum traffic requirements, revenue generated on such contracts will vary from month to month, and such variations may be material. The Company cannot provide any assurances as to the revenues to be generated by such contracts once the transition is complete.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Virtutone Achieves $500,000 a Day in Revenue

Posted by AGORACOM-JC at 9:41 AM on Friday, April 11th, 2014

BREAKING NEWS…

Virtutone Achieves $500,000 a Day in Revenue

  • Announced that it has achieved a new daily revenue record of over $500,000 in revenue Wednesday April 9th, 2014
  • “This is a great milestone that we have achieved” said Jason Allen, Chief Executive Officer of Virtutone. “Due to our strong balance sheet, we are leveraging our strong financial position to increase organic sales as we had projected, while maintaining our margins.”

OTHER FINANCIAL HIGHLIGHTS

  • $9.12 million in revenue for March 2014.
  • $7.7 million in revenue for February/ Increase in gross margins
  • $9.2 million in revenue for January 2014
  • $8.45 million in revenue for December 2013
  • $7.2 million in revenue for November 2013
  • $3.95 million in revenue for October 2013

Hub On AGORACOM / Corporate Profile / Read Release

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Virtutone Achieves $500,000 a Day in Revenue

Sherwood Park, Alberta / April 11th, 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that it has achieved a new daily revenue record of over $500,000 in revenue Wednesday April 9th, 2014.

“This is a great milestone that we have achieved” said Jason Allen, Chief Executive Officer of Virtutone. “Due to our strong balance sheet, we are leveraging our strong financial position to increase organic sales as we had projected, while maintaining our margins. ” “We have also updated our investor presentation, which is available now on our website at www.virtutone.com”

For further information please contact Jason Allen at 780-702-5777.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The company is a leading supplier of managed telecommunication services, including: Voice over IP services, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products. Additional information can be found on the company’s website at www.virtutone.com.

This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under of any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts; timing and completion of the transition of new voice traffic; the sustainability of the new revenue stream; increased leverage with suppliers; additional deals currently being worked on and the impact thereof; and negotiations relating to potential new customers. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company. As these contracts do not contain any minimum traffic requirements, revenue generated on such contracts will vary from month to month, and such variations may be material. The Company cannot provide any assurances as to the revenues to be generated by such contracts once the transition is complete.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.