CHATTANOOGA, Tenn.-- December 15, 2003 - Covista Communications, Inc. (NASDAQ symbol: CVST - news), today announced the Company successfully settled an insurance claim related to losses stemming from the September 11, 2001 terrorist attacks. Gross proceeds from this final settlement are $3.25 million.
In accordance with the Financial Accounting Standards Board EITF 01-10, "Accounting for the Impact of the Terrorist Attacks of September 11, 2001", the Company will recognize this settlement net of additional estimated expenses of approximately $650,000, as income from continuing operations during the quarter ended January 31, 2004.
John Leach, President and Chief Executive Officer of Covista stated, "We are extremely pleased to have reached a satisfactory settlement of this long standing claim. We look forward to using these proceeds to help grow the Company in 2004."
About Covista:
Covista is a facilities-based telecommunications services provider with a substantial customer base in the residential and commercial market segments. Its products and services include a broad range of voice, data and Internet solutions, including local, long distance and toll-free services, calling cards, frame relay, Internet access, VPN, directory assistance and teleconferencing services. Covista owns and operates several switches in locations throughout the United States. Covista headquarters are located in Chattanooga where it also maintains a Network Operations, call center and information technology facilities to monitor its network and coordinate various services. For information on becoming a Covista c ustomer, please telephone 800-805-1000 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.