Averox Inc. Announces Results for the Quarter Ended September 30, 2008

  
    
  
  
    
      Averox Inc. (OTCBB:AVRI) announced results for the first quarter of 
      fiscal year 2009, ended September 30, 2008. All figures are in U.S. 
      dollars.
    
    
      “Revenues for the quarter ended September 30, 2008 were $161,051 
      compared with revenues of $134,152 for the quarter ended September 30, 
      2007, an increase of $26,899, or approximately 20%, primarily as a 
      result of an increase in commission income,” stated Mr. Salman Mahmood, 
      CEO. “The cost of revenue was $107,645, or 67% of net revenue for the 
      quarter ended September 30, 2008, compared with a cost of revenue of 
      $217,427, or 162% of net revenue in the corresponding quarter a year 
      ago. The decrease was primarily a result of lower direct costs of 
      telecom equipment and services and as a result of our concentration on 
      higher profit margin service and commission oriented business. General 
      and administrative costs for the quarter ended September 30, 2008 were 
      $137,838, compared with general and administrative costs of $434,671, in 
      the previous year quarter, a decrease of $296,833, or approximately 68%. 
      The decrease in G & A costs was primarily a result of a reduction in 
      personnel and office costs associated with the closure of our Dubai 
      offices, relocation of our offices in Pakistan, and the institution of a 
      cost reduction plan. Net loss for the quarter ended September 30, 2008 
      was $116,168 compared with a net loss of $515,106 in the first quarter 
      of fiscal 2008,” Mr. Mahmood added.
    
    
      “We are beginning to see a response to our transition from full design 
      and deployment of telecommunications networks to much more focus on 
      software solutions for telecom operators. We plan to continue our 
      approach of working with partners and system integrators as well as 
      developing our own software products such as Provisus™. We acquired a 
      software suite known as Provisus™ on August 5, 2008, from Provisus Ltd. 
      Provisus™ provides service activation and provisioning technology to 
      telecom operators. We are in the process of bringing enhancements from 
      version 1.0 of the product that will be at par with 3G and 4G compatible 
      technologies, converting it to version 2.0. By the beginning of next 
      year we expect to be able to launch version 2.0 of the product. The 
      Provisus™ product is expected to be tested by one of the world's leading 
      mobile (3G/GSM) operators. If the testing is successful, we believe that 
      the operator will license the product and that Provisus™ will be 
      attractive to other telecommunications providers. The Provisus™ product 
      has worldwide applications for both fixed and mobile telecommunications. 
      However, even if the Provisus™ product is successfully tested, it will 
      take at least six to nine months before Averox derives any significant 
      license fees from this product.”
    
    
      “We have also entered the solar and wind powered generators market by 
      offering a range of wind and solar powered generators that can be used 
      to produce clean and inexpensive power for domestic and commercial use. 
      We believe that this market will become a significant part of our 
      business in the future,” Mr. Salman Mahmood, CEO said.
    
    
      
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          2008
        
        
        
        
          2007
        
        
        
        
          Change
        
        
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Revenue
        
        
        
        
          $
        
        
          161,051
        
        
        
        
        
        
          $
        
        
          134,152
        
        
        
        
        
        
          $
        
        
          26,899
        
        
        
        
        
        
          20
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of revenue
        
        
        
        
           
        
        
          107,645
        
        
           
        
        
        
        
           
        
        
          217,427
        
        
           
        
        
        
        
           
        
        
          (109,782
        
        
          )
        
        
        
        
          -50
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Gross profit
        
        
        
        
        
        
          53,407
        
        
        
        
        
        
        
        
          (83,275
        
        
          )
        
        
        
        
        
        
          136,682
        
        
        
        
        
        
          -164
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          General and administrative expenses
        
        
        
        
           
        
        
          137,838
        
        
           
        
        
        
        
           
        
        
          434,671
        
        
           
        
        
        
        
           
        
        
          (296,833
        
        
          )
        
        
        
        
          -68
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income from operations
        
        
        
        
           
        
        
          (84,431
        
        
          )
        
        
        
        
           
        
        
          (517,947
        
        
          )
        
        
        
        
           
        
        
          433,516
        
        
           
        
        
        
        
          -84
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other (Income) Expense
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Interest income
        
        
        
        
        
        
          (9
        
        
          )
        
        
        
        
        
        
          (2,771
        
        
          )
        
        
        
        
        
        
          2,762
        
        
        
        
        
        
          -100
        
        
          %
        
      
      
        
        
        
          Other income (expense)
        
        
        
        
        
        
          13,234
        
        
        
        
        
        
        
        
          0
        
        
        
        
        
        
        
        
          13,234
        
        
        
        
        
        
          100
        
        
          %
        
      
      
        
        
        
          Interest expense
        
        
        
        
        
        
          153
        
        
        
        
        
        
        
        
          1,596
        
        
        
        
        
        
        
        
          (1,443
        
        
          )
        
        
        
        
          -90
        
        
          %
        
      
      
        
        
        
          Currency exchange (gains) losses
        
        
        
        
        
        
          (1,548
        
        
          )
        
        
        
        
        
        
          151
        
        
        
        
        
        
        
        
          (1,699
        
        
          )
        
        
        
        
          -1125
        
        
          %
        
      
      
        
        
        
          (Gain) loss on disposal of asset
        
        
        
        
           
        
        
          4,650
        
        
           
        
        
        
        
           
        
        
          0
        
        
           
        
        
        
        
           
        
        
          4,650
        
        
           
        
        
        
        
          100
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total Other Income
        
        
        
        
           
        
        
          16,479
        
        
           
        
        
        
        
           
        
        
          (1,025
        
        
          )
        
        
        
        
           
        
        
          17,504
        
        
           
        
        
        
        
          -1708
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income before income taxes
        
        
        
        
        
        
          (100,910
        
        
          )
        
        
        
        
        
        
          (516,922
        
        
          )
        
        
        
        
        
        
          416,012
        
        
        
        
        
        
          -80
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for income taxes
        
        
        
        
           
        
        
          15,258
        
        
           
        
        
        
        
           
        
        
          (1,816
        
        
          )
        
        
        
        
           
        
        
          17,074
        
        
           
        
        
        
        
          -940
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          (116,168
        
        
          )
        
        
        
        
          $
        
        
          (515,106
        
        
          )
        
        
        
        
          $
        
        
          398,938
        
        
           
        
        
        
        
          -77
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      About Averox Inc. (www.averox.com)
    
    
      Averox Inc. (OTCBB:AVRI) is a publicly held independent provider of 
      solutions and services in the domains of Telecommunication Engineering, 
      Telecommunication OSS and BSS and Information Technology. Averox 
      services include offshore product development, application management, 
      project management, program management, telecommunications network 
      deployment, management, optimization and maintenance for small, medium 
      and large enterprises. Averox Inc. has two principal subsidiaries Averox 
      Private Limited and Averox FZ-LLC.
    
    
      This news release contains certain forward-looking statements within the 
      meaning of the Private Securities Litigation Reform Act of 1995. These 
      statements are based on Averox management's current expectations and are 
      subject to risks and uncertainties and changes in circumstances. All 
      forward-looking statements included in this press release are based upon 
      information available to Averox as of the date of the press release, and 
      it assumes no obligation to update or alter its forward- looking 
      statements whether as a result of new information, future events or 
      otherwise. Further information on risks or other factors that could 
      affect Averox' results of operations are detailed in the filings of 
      Averox with the SEC.