Telanetix, a communications solutions provider offering voice services and solutions to the business market, reported financial results for its 2010 fourth quarter and full year ended December 31, 2010.
The company’s fourth quarter core voice revenue increased 10 percent over the same quarter last year and full-year core revenue grew nearly 16 percent over 2009.
Fourth Quarter 2010 Financial Highlights:
- Core voice revenue increased 10 percent year-over-year to $6.0 million, compared to $5.4 million in the fourth quarter of 2009.
- Total revenue was $6.7 million, a decrease of 6.9 percent compared to $7.2 million in the fourth quarter of 2009. The decline in total revenue was due to the expected decrease in legacy product revenues, which were $733,000, a 59 percent decrease compared to $1.8 million in the fourth quarter of 2009.
- Adjusted EBITDA improved to $536,000, compared to $130,000 in the fourth quarter last year.
- Net loss from continuing operations was $1.6 million, or $0.00 per share, compared to net income of $1.1 million, or $0.04 per share, in the fourth quarter last year.
- Total cash and cash equivalents increased $58,000 to $2.3 million at December 31, 2010.
Full Year 2010 Financial Highlights:
- Core voice revenue increased 15.9 percent year-over-year to $23.7 million.
- Total revenue increased $228,000 year-over-year to $28.5 million.
- Adjusted EBITDA of $1.7 million, first full year positive EBITDA and a more than $2.1 million improvement compared to an adjusted EBITDA loss of $379,000 for 2009.
- Net income from continuing operations was $10.3 million, or $0.06 per share, which included a $16.5 million gain on recapitalization and $800,000 credit from change in fair market value of derivative liabilities, compared to net loss in 2009 of $8.1 million, or a loss of $0.26 per share, which included a $4.1 million expense for interest and a $3.8 million credit for warrant and beneficial conversion feature liabilities.
“In addition, we achieved our fifth consecutive quarter of positive adjusted EBITDA and first full year positive EBITDA. During the quarter, our legacy revenue flattened out from recent declines, and we expect it to stay flat or modestly improve in 2011," said Doug Johnson, Telanetix’s CEO.
He added that during the year the company made progress building on its strategic partnerships and expanding its customer reach by adding new channel partners, including Mitel Networks and Vertical Communications, each of which offers Telanetix’s SIP trunking services to customers ranging from medium-sized businesses to Fortune 1000 enterprises. "We have seen strong initial interest in these services and expect this to be an important growth driver in 2011," Johnson said.
”2010 was a pivotal year for Telanetix and we are pleased with our progress and positive steps that have stabilized the company, including completing a comprehensive recapitalization of the Company. We believe we are well positioned now to build on this stable foundation and further expand our presence and share in the marketplace. We expect to achieve continued double digit growth in our core revenue for 2011,” he concluded.