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Spantel President Issues Open Letter to Shareholders
FUENGIROLA, Spain, Oct. 20 /PRNewswire-FirstCall/ -- Spantel Communications,
Inc. (OTC:SPAL) (BULLETIN BOARD: SPAL) today has provided the following open
letter from its president, Jose Ramon Basterra, to shareholders and the
investment community at large in order to update all parties on the Company's
operational progress.
To Our Shareholders
I would like to take this opportunity to update you on the remarkable progress
our company has achieved over the last six fiscal quarters.
We have been able to realize revenue growth in every quarter since we began
operations and this sustained growth has been instrumental in bringing us to
profitability. This past year has been a good year for us as we have seen
sales increase in the third fiscal quarter by 18.4%, from $4,063,108 in the
third fiscal quarter of 2003 to $4,812,481 in the third fiscal quarter of 2004.
Year to date revenues increased by 21.87%, from $12,210,638 in fiscal 2003, to
$14,881,092 in fiscal 2004, staying within management objectives with a 43.21%
gross operating margin.
During the third fiscal quarter of 2004 we redeployed some assets and took some
one-time extraordinary charges to position us in what management has identified
as future growth markets that we have developed in the past year. This includes
access into the mobile phone sector, in addition to a wholesale department.
With the introduction of our own prepaid calling card platform in Madrid we
have also seen margins increase in the calling card sector. Additionally we
have added operator assistance service and premium numbers to better optimize
our resources at our call centers. We believe that we are well positioned to
continue to grow into 2005.
Although last year we reported earnings of $0.05 per share, we expect that
earnings for this fiscal year will be negatively impacted due to capital
expenditures and extraordinary charges associated with the start-up of some of
our newer services. We believe that these capital expenditures were essential
to enable us to remain competitive as well as operate with a healthy operating
margin.
My staff and I are fully committed to giving our customers and shareholders the
confidence to know that we are in a dynamic growth industry located in one of
Europe's strongest economies, and we believe that we are poised for a fantastic
future. By any measure, the story of this past year is one of a turnaround. We
believe that the real success, however, lies not in this year's achievements,
rather it is found in the resolve and focus we developed during the process
that we hope will equip us for the future. My philosophy, and one that I try
to instill in our management team, is that if we successfully manage our core
business, such success will lead us to new opportunities.
Deregulation and competition have pushed us to be lean and efficient, to
measure the performance of every employee and every business practice, and to
have a financial toughness in managing and leveraging our assets. This mindset
has imposed a rigid discipline on our operating practices, which puts this
year's results in the proper context. More importantly, it instills within us
optimism for the future. This mindset has also enabled us to explore new
opportunities in markets where our core business can be expanded or otherwise
complemented.
We at Spantel are proud of our accomplishments and look forward to continued
growth in the future as we have seen in the past. Although we have grown
steadily since inception and are now profitable from an operating standpoint,
we believe that the share price of our common stock is not reflective of these
accomplishments. As many of you are aware, in an industry such as
telecommunications, many companies trade at price multiples significantly
higher than ours. We are hopeful that as word of our accomplishments spread,
our potential as a competitor in our market and our corresponding market value
will follow.
We look forward to an exciting future and invite you to visit our facilities in
Spain anytime.
Regards,
Spantel Communications, Inc.
Jose Ramon Basterra
President
Footnote: Third quarter 2004 financials are unaudited
Spantel Communications, Inc. is a provider of telecommunications services
throughout Spain. To learn more about Spantel, visit the Company's website at
http://www.spantel.es/.
SAFE HARBOR: Except for historical information contained herein, the statements
in this release are forward-looking and made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties,
which may cause the Company's actual results in future periods to differ
materially from forecasted results. Those risks include, among other things,
the competitive environment in the telecommunications industry in general and
in the Company's specific market areas, inflation, changes in costs of goods
and services and economic conditions in general. Those and other risks are more
fully described in the Company's filings with the Securities and Exchange
Commission.
Contact:
Spantel Communications, Inc.
Mr. Robert Carlin
+34.952.66.93.29
This release was issued through eReleases(TM). For more information, visit
http://www.ereleases.com/.
DATASOURCE: Spantel Communications, Inc.
CONTACT: Mr. Robert Carlin, Spantel Communications, +34.952.66.93.29,
Web site: http://www.spantel.es/