Farmstead (AMEX:FTG)
Historical Stock Chart
From Jul 2019 to Jul 2024
Farmstead Telephone Group, Inc. Reports First Quarter 2005
Operating Results
EAST HARTFORD, Conn., May 13 /PRNewswire-FirstCall/ -- Farmstead Telephone
Group, Inc. (AMEX:FTG) announced operating results for the first quarter ended
March 31, 2005.
For the quarter ended March 31, 2005, revenues were $2,409,000, 29 percent
below revenues of $3,406,000 reported for 2004. The Company reported a net
loss for the quarter of $639,000, or $(0.19) per share, compared with a net
loss of $341,000, or $(0.10) per share, in 2004. The net loss for the 2005
quarter included one-time expenses of $84,000 incurred in connection with the
early termination of the Company's credit facility with Business Alliance
Capital Corporation, in favor of a larger credit facility with The Laurus
Master Fund, LTD ("Laurus"). The Company attributed its 2005 operating results
to lower-than-expected revenues due to continued sales price erosion and some
loss of market share as competition has intensified, particularly in the sale
of parts and systems to larger companies; an undersized sales force; and a
still cautious telecom equipment spending environment.
Jean-Marc Stiegemeier, Farmstead's CEO and President commented, "Although first
quarter revenues were disappointing, we nevertheless attained several
significant milestones in the execution of our turnaround strategy. Beginning
in March, we launched our Small and Medium Business (SMB) Group to sell
products and services to businesses with 200 and fewer employees. We also
hired 23 former Avaya sales and management professionals for the SMB group.
Total new hires of sales and management professionals since March now stand at
29. In addition, we concluded a refinancing of our revolving credit facility,
obtaining a $3 million credit line with Laurus, which will provide us the
additional working capital to execute certain elements of our plan. During this
period, we expanded our national footprint by seven states. Our rebuilding
process is primarily focused on the SMB marketplace, and these efforts are now
beginning to show results, as evidenced by a significant increase in March 2005
bookings and revenues over recent prior months. The first quarter was the
beginning of our committed redirection of the Company.
"On May 12, we announced the formation of our new wholly owned subsidiary, One
IP Voice. When operational, One IP Voice will provide carrier-based Hosted IP
Telephony solutions along with Network Services. The primary target of the One
IP Voice offering will be the SMB market. The facilities-based One IP Voice
offering will include Hosted IP Centrex and IP Trunking services, bundled with
private One IP Voice "Last Mile" connectivity on a national basis, long
distance calling, On Net calling, local area calling, 911 capabilities, and
Wide Area Network (WAN) voice and data connectivity. One IP Voice will also
offer a consumer VOIP product.
"These are exciting times at Farmstead and for the industry. The companies
that will survive this paradigm shift to VOIP will be the companies able to
commit the intellectual and capital resources required to meet their customers
changing needs. Farmstead is committed to continue building and executing a
plan that will enhance shareholder value."
About Farmstead
Farmstead Telephone Group, Inc. is an Avaya Inc. Gold Business Partner,
selling, installing and maintaining both new and refurbished Avaya business
communications products nationwide. Further information about Farmstead
Telephone may be found at http://www.farmstead.com/.
Farmstead Telephone Group, Inc.
Financial Summary
Quarter Ended March 31,
2005 2004
Revenues $2,409,000 $3,406,000
Net Loss $(639,000) $(341,000)
Basic and Diluted Net Loss Per Share $(.19) $(0.10)
Basic and Diluted Weighted
Average Shares Outstanding: 3,327,868 3,312,666
We are interested in your feedback and comments. To respond to questions from
our management team, click here:
http://www.b2i.us/sendFeedBack.asp?B=1042&RL=7853&S=12204
To add yourself to our email distribution list, click here:
http://www.b2i.us/frame.asp?BzID=1042&to=ea&Nav=1&S=0&L=1
This release contains forward-looking statements that involve risks and
uncertainties. In addition to historical information, investors should consider
carefully the risks associated with an investment in the Company's securities
as previously outlined by the Company in its prior filings with the Securities
and Exchange Commission.
CONTACT:
Robert G. LaVigne, CFO
Farmstead Telephone Group, Inc.
Voice: 860-610-6002
Fax: 860-610-6001
DATASOURCE: Farmstead Telephone Group, Inc.
CONTACT: Robert G. LaVigne, CFO of Farmstead Telephone Group, Inc.,
+1-860-610-6002
Web site: http://www.farmstead.com/