CHATTANOOGA, Tenn.--(BUSINESS WIRE)--June 19, 2002--Covista Communications, Inc. (NASDAQ Symbol: CVST - News), today announced its fiscal quarter results.
For the first quarter of fiscal year 2003 which ended April 30, 2002, Covista Communications, Inc. reported sales of $24,548,143 as compared to sales of $29,444,021 for the prior year's fiscal quarter and a loss of $2,864,644 or $.23 per share, compared with a loss of $4,592,666 or $.56 per share, for the prior year's first quarter.
John Leach, President and Chief Executive Officer of Covista stated "We have made significant strides towards restoring Covista to profitability. While we did report a loss of $2,844,644 or $0.23 a share of which $864,701 or $.07 a share was amortization of intangibles related to the Capsule Communication acquisition, we have dramatically improved our operation compared to first quarter of the prior fiscal year where we reported a loss of $4,592,377 or $0.56 per share. What is most heartening is that the EBITDA loss has decreased from $2,360,000 in the prior year's first fiscal quarter to a loss of $827,000 in the current fiscal quarter. A number of positive events have occurred during the quarter. Our KISSLD residential long distance service has added 36,000 new customers. Our enhanced agent programs are adding approximately 10,000 new business customers per month. The reduction in force implemented early in the first quarter reduced current selling, general and administrative expense by approximately 25%."
Headquartered in Chattanooga, TN, Covista Communications, Inc., provides voice, data and Internet solutions to both the commercial and wholesale carrier markets. Covista offers domestic and international switched and dedicated communications solutions, providing businesses with a range of competitively priced state-of-the-art technologies and quality customer care.
We are providing the following consolidated summary of operations (unaudited) for the three months ended April 30, 2002 and 2001:
QUARTER ENDED APRIL 30
2002 2001
---- ----
Revenue $24,548,143 $29,444,021
Cost & Expense 27,215,168 34,307,187
Operating Loss (2,667,025) (4,863,166)
Other Expense Income 197,620 270,500
Net (2,864,644) (4,592,666)
Other Comprehensive Income
(Loss), net of tax 289
Comprehensive Loss (2,864,644) (4,592,377)
Basic Loss per Common Share $ ( 0.23) $ (0.56)
Diluted Loss Common Share $ ( 0.23) $ (0.56)
Average Number of Common Shares
Basic 12,462,885 8,247,989
Diluted 12,462,885 8,247,989
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, Internet access, VPN, directory assistance and teleconferencing services. The wholesale division provides domestic and international termination services to carriers worldwide at competitive rates. Covista currently owns and operates switches in New York City, Newark, New Jersey, and Philadelphia and previously has announced plans to expand to additional switch salesgroups in Las Vegas, Minneapolis and Dallas, together with the new facilities in Chattanooga. The Company previously announced that it has acquired access to nation-wide telecommunications network facilities comprising 2,822,400,000 DS-0 channel miles of additional capacity. The Company operates a Network Operations Center in Little Falls, New Jersey 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.
Certain matters discussed in this release are "forward-looking statements" intended to qualify for the safe harbor from liability provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Registrant "believes", "anticipates", "expects", or words of similar import. Similarly, statements which describe the Registrant's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which are described in close proximity to such statements and which could cause actual results to differ materially from those anticipated as of the date of this Report. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements
included herein are only made as of the date of this Report and the Registrant undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Covista Communications, Inc.
Thomas Gunning, 973/812-1100
tgunning@covistacom.com
Fax: 973/237-6414