Axesstel Announces Second Quarter 2008 Results.- Quarterly Revenue of $31.6 Million Grows 13%, Compared to $28.0 Million in Second Quarter 2007 - - Delivers Record Profitability with Quarterly EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.05, Compared to $0.01 in Second Quarter 2007 - SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. -- Axesstel, Inc. (AMEX AMEX See: American Stock Exchange :AFT), a recognized leader in the design and development of fixed wireless voice and broadband data products, announced results for the second quarter and six months ended June 29, 2008. Clark Hickock, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Axesstel, stated, "In the second quarter, we executed our plan to grow the business profitably and our success is attributable to our focus on both top and bottom line results. Our continued investment in dedicated regional sales teams serving a diversified and global customer base in emerging markets delivered revenue of $31.6 million. This level of revenue, when combined with our operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. reductions, generated record net income for the quarter of $1.2 million with record EPS of $0.05. "On the innovation side, the launch of our new CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. 2000 1xEVDO Rev. A fixed wireless phone began attracting strong interest from operators, and we already have advanced orders. As the emerging markets increase investment in new technology, we have built a pipeline of exciting new products to meet the demand for high performance data and phone devices. We set a 2008 goal to launch 12 products and have introduced seven to date. We are looking forward to the second half of 2008 as we are on track to launch five more new products," Hickock added. Financial Results Revenues for the second quarter of 2008 were $31.6 million, including data products revenue of $23.5 million. This compares to revenues of $28.0 million including $11.9 million from data products in the second quarter of 2007. Revenue during the quarter from both data products and from sales in the EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. region were at record levels of $23.5 million and $10.5 million, respectively. Gross margin for the second quarter 2008 was $8.0 million, or 25 percent of revenue, compared to $6.6 million, or 23 percent of revenue for the same period last year. Net income was $1.2 million or $0.05 per diluted share, compared to a net income of $273,000 or $0.01 per diluted share in the second quarter of 2007. For the six months ended June 29, 2008, the company reported revenue of $56.3 million, compared to $53.2 million for the first half of 2007. Net income for the first half of 2008 was $1.5 million, or $0.06 per share, compared to net loss for the first half of 2007 of $976,000, or $0.04 per share. As of June 29, 2008, the company had approximately $25 million in backlog which is expected to be delivered in the third quarter. Pat Gray, Axesstel's CFO See Chief Financial Officer. , stated, "At quarter end, the company had cash and cash equivalents of $1.4 million, an increase of $800,000 since the beginning of the year. During the quarter, we had sales of $31.6 million, pushing accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying to $38.7 million. We financed $10.4 million of working capital against these accounts receivable, the majority of which came from our Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. line of credit. This financing is a reflection of the quality of the sales we are making and a high level of confidence in our execution. We believe our strategic banking relationships will provide us the necessary working capital to grow our business." Outlook The company continues to expect full year 2008 revenues to exceed $100 million, up from $82.4 million in 2007. Additionally, the company believes data products will contribute more than $60 million in revenues in 2008, up from $34.9 million in 2007, and will exceed phone revenues for the first time on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. Product mix and customer demand can impact gross margin and profitability on a quarterly basis. However, based on its assessment of the market, management is optimistic about delivering profitability for the year. Recent Highlights * Expanded its product portfolio to WCDMA/HSPA networks and increased its addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be markets with the launch of the EU230 HSUPA (High Speed Uplink Packet Access) See HSPA. Mini ExpressCard/34 wireless modem for High-Speed Uplink Packet Access High-Speed Uplink Packet Access (HSUPA) is a 3G mobile telephony protocol in the HSPA family with up-link speeds up to 5.76 Mbit/s. The specifications for HSUPA are included in Universal Mobile Telecommunications System Release 6 standard published by 3GPP. (HSUPA) networks. * Launched the first CDMA2000 1xEVDO Rev. A fixed wireless phone on the market, combining voice and high-speed data communications into a highly integrated phone and data device and exhibited at CommunicAsia 2008 in Singapore in June. * Won an annual follow-on purchase order from a customer in EMEA for over 120,000 units, which contributed to the record second quarter revenue from this region. * Received notification the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. accepted the company's compliance plan. The company is ahead of schedule on the plan submitted. Conference Call Axesstel will host a conference call at 8:00 AM PT (11:00 AM ET) to discuss its second quarter 2008 results. Participating in the call will be Clark Hickock, chief executive officer, and Patrick Gray, chief financial officer. The call is being webcast and can be accessed from the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " section of the company's website at http://www.axesstel.com. Alternatively, you may dial the following number ten minutes prior to the scheduled conference call time: 1-877-663-9622. International callers should dial 00-1-706-634-9407. There is no pass code required for this call. If you are unable to participate in the call at this time, the webcast will be archived on the Axesstel website. In addition, a telephonic replay will be available on Thursday, August 7 at 2:00 p.m. ET through Monday, August 11 at 11:59 p.m. ET. To access the replay, please dial 1-800-642-1687. International callers should dial 00-1-706-645-9291. The pass code is 55056528. ABOUT AXESSTEL, INC. Axesstel (AMEX:AFT) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel's best in class product portfolio includes broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com. (C) 2008 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: With the exception of historical information, the statements set forth above include forward-looking statements relating to market penetration and conditions, product capabilities and the timing of new product introductions which may affect future results and the future viability of Axesstel. Axesstel wishes to caution readers that actual results could differ materially from those suggested by the forward-looking statements due to risks and uncertainties and a number of important risk factors. Those factors include but are not limited the risk factors noted in Axesstel's filings with the Securities and Exchange Commission, such as to the need for additional working capital; economic and political instability in developing markets served by Axesstel; unforeseen manufacturing difficulties, unanticipated component shortages, competitive pricing pressures and the rapidly changing nature of technology and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; product and customer mix, Axesstel's need to gain market acceptance for its products; dependence on a limited number of large customers; potential intellectual property-related litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; Axesstel's need to attract and retain skilled personnel; and Axesstel's reliance on its primary contract manufacturer. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axesstel undertakes no obligation to revise or update this press release to reflect events or circumstances occurring after this press release. [TABLE OMITTED] [TABLE OMITTED] |
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