Covista Communications, Inc. Announces Operating Results for Fiscal Year Ended January 31, 2002.Business/High Tech Editors CHATTANOOGA, Tenn.--(BUSINESS WIRE)--May 16, 2002 Covista Communications, Inc. (Nasdaq:CVST CVST Chinese Visiting Scholars in Toronto (Canada) ) today announced results for its fiscal year ended January 31, 2002. Revenues for the fiscal year were $95,312,696 as compared with revenues of $133,230,437 for the prior fiscal year. Covista reported a net loss of $11,969,588 or $1.17 per share for the fiscal year ended January 31, 2002, as compared with a net loss of $8,629,304 or $1.18 per share for the prior fiscal year. For the quarter ended January 31, 2002, revenues were $16,509,657 as compared with revenues of $33,426,834 for the comparable quarter of the prior fiscal year. Covista reported a net loss of $5,603,531 or $0.52 per share for the quarter, compared with a net loss of $3,345,924 or $0.45 per share for the comparable quarter of the prior fiscal year. These results are in line with the Company's pre-release announcement on April 30, 2002. John Leach John Leach can refer to :
New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. switching facility on September 11, we believe Covista has demonstrated remarkable resilience resilience (r  ·zilˑ·yens),n and vitality. Our focus now is on the future, and we have much to report that is positive." Mr. Leach continued, "Covista has adopted and begun to implement a remodeled business plan consisting of three components: new business initiatives, a significant infusion of new equity capital to support both the current business and the Company's anticipated future growth, and a reduction in operating costs operating costs npl → gastos mpl operacionales . On the new business side, the Company has moved to scale back its high-risk, low-margin wholesale business in favor of a more secure and stable retail business base. We are proud to report that the successful launch of Covista's KISSLD residential long distance service and the Company's agent-based, custom-branded long distance programs together have yielded over 70,000 new customers since January 1 of this year. With respect to costs, our efforts have included the previously-announced reduction in force that was completed in February 2002, after the close of the last fiscal year. We expect those reductions and other cost savings to be reflected on a prospective basis. The equity infusion, subject to shareholder approval, will be $12.5 million. We believe this should eliminate Covista's current working capital deficit." In addition to the foregoing, Covista is proceeding toward full integration of Capsule capsule In botany, a dry fruit that opens when ripe. It splits from top to bottom into separate segments known as valves, as in the iris, or forms pores at the top (e.g., poppy), or splits around the circumference, with the top falling off (e.g., pigweed and plantain). Communications, Inc. which Covista acquired in February 2002. "The Capsule revenue stream already is having a positive impact upon current operations," Mr. Leach added, "and Covista is continuing to develop new ways to benefit from the e-business infrastructure enhancements gained in the Capsule acquisition." Mr. Leach concluded, "We have undertaken a substantial transformation of Covista over the past few months. As we look ahead in the current fiscal year, we are encouraged that our initiatives are beginning to bear fruit." About Covista: Covista is a facilities-based long distance telecommunications, Internet and data services provider with a substantial customer base in the commercial, wholesale and residential market segments. Its products and services include a broad range of voice, data and Internet solutions, including long distance and toll-free services, calling card, frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. , Internet access See how to access the Internet. , VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks. , directory assistance and teleconferencing services. The wholesale division provides domestic and international termination services to carriers worldwide. Covista currently owns and operates switches in New York City, Newark, New Jersey and Philadelphia, and has announced plans to expand to additional switch sites in Dallas, Minneapolis, Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. and Chattanooga, Tennessee “Chattanooga” redirects here. For other uses, see Chattanooga (disambiguation). Chattanooga is the fourth-largest city in Tennessee (after Memphis, Nashville, and Knoxville), and the seat of Hamilton CountyGR6 . Covista operates Network Operations, call center and information technology facilities in Chattanooga to monitor its switched network and to coordinate its various services. For information on becoming a Covista customer, please telephone 888/426-8478 or visit the Company's website at www.covista.com.
FISCAL YEAR ENDED JANUARY 31
We are providing the following consolidated summary of operations
for the fiscal year ended January 31, 2002 and 2001 (Amounts and
number of shares in thousands except per share data):
2002 2001
-------------- --------------
Revenue $ 95,313 $ 133,230
Cost and Expenses 107,475 141,964
Operating Loss (12,162) (8,734)
Other Income (Expense) 192 104
Loss before
income taxes (11,970) (8,629)
Net loss (11,970) (8,629)
Other comprehensive income 80
Comprehensive Loss $(11,970) $ (8,550)
Basic loss per common share $ (1.17) $ (1.18)
Diluted loss per common share $ (1.17) $ (1.18)
Average Number of Shares
Basic 10,204 7,324
Diluted 10,204 7,324
QUARTER ENDED JANUARY 31
2002 2001
------------ -----------
Revenue $ 16,510 $ 33,427
Cost and Expenses 22,061 36,733
Operating Loss (5,551) (3,306)
Other Income (Expense) (54) (40)
Loss before
income taxes (5,605) (3,346)
Net loss (5,605) (3,346)
Other comprehensive income (30)
Comprehensive Loss $ (5,605) $ (3,376)
Basic loss per common share $ (0.52) $ (0.45)
Diluted loss per common share $ (0.52) $ (0.45)
Average Number of Shares
Basic 10,836 7,341
Diluted 10,836 7,341
Information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This press release contains historical and forward-looking statements made pursuant to the 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. provisions of the private securities 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. act of 1995. Investors are cautioned that forward-looking statements such as statements of the company's plans, objectives, expectations and intentions involve risks and uncertainties. The cautionary statements made in this release should be read as being applicable to all related statements wherever they appear. Statements containing terms such as "believes," "expects," "plans," "projects," "intends," "estimates," "anticipates," or similar terms, are considered to contain uncertainty and are forward-looking statements. The actual results could differ materially from those discussed. Factors that could contribute to such differences include: changes in market conditions and increased competition from other telecommunications and internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. ; government regulations; the volatile and competitive environment for internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. ; advances in competitive products or technologies that could reduce demand for services; availability of transmission facilities; management of rapid growth; customer concentration and attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: ; the ability to successfully integrate acquired companies; the ability to successfully develop and bring new services to market; inaccurate or incomplete assumptions on the part of management; and other risks discussed in the company's SEC filings, including form 10-k Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and form 10-q Form 10-Q See 10-Q. , which can be accessed at the SEC web site at www.sec.gov. Readers of this release should understand that it is not possible to predict or identify all such risk factors. Consequently, this list should not be considered a complete statement of all potential risks or uncertainties. Covista does not assume the obligation to update any forward-looking statement, except as is required by applicable law. |
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