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CommerceTel Corporation Reports 231% Increase in Third Quarter RevenuesCompany Driving Growth Through Core Technology and Products Fueling Over 1,500 Customer Deployments (November 14, 2011)
SAN DIEGO, CA -- (Marketwire) -- 11/14/11 -- CommerceTel Corporation (OTCBB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, today announced its operating results for the third quarter and FY2011 year-to-date.
For the third fiscal quarter ended September 30th, 2011, the Company reported revenue of $842,885, which represented an increase of approximately 231% when compared with revenue of $254,273 in the prior-year fiscal quarter ended September 30th, 2010 and an increase of approximately 52% when compared with revenue of $553,108 during the previous quarter of FY2011 ended June 30th, 2011.
For the nine months ended September 30th, 2011, the Company's revenue increased approximately 125% to $1,536,630, compared to $683,095 during the same period of the previous fiscal year.
"During our third quarter we completed the acquisition of the assets of DigiMark, LLC which included Boomtext and an outstanding client roster. With Boomtext, and our previous strategic acquisitions of the assets of Adsparq, including Txtstation, and Mobivity, we are seeing the immediate organic growth expected by implementing our award-winning, patented technology into the operations and client base of all three acquired assets," stated Dennis Becker, Chief Executive Officer of CommerceTel.
The Company is estimating revenues of $1M for the current fourth quarter ending December 31st, 2011. Revenues of $1M for the current quarter would result in a quarterly revenue growth rate of 18.6% over the most recent third quarter.
"When you examine the historical revenue performance of these strategic acquisitions, prior to joining CommerceTel, and compare that performance to our recent quarter, the organic growth produced by the combination of these companies with our technology is quite impressive," continued Becker. "Aside from the results we predicted through enabling these strategic acquisitions with our technology, I credit our team for their success in integrating essentially four companies in just five months."
Gross profits increased more than 179% to $966,025 (63% of revenue) in the nine months ended September 30th, 2011, compared to $345,738 (51% of revenue) in the nine months ended September 30th, 2010.
The Company also improved its quarterly Adjusted EBITDA performance year-to-date by more than 27% when comparing the third quarter's Adjusted EBITDA loss of $312,102 to the first quarter Adjusted EBITDA loss of $429,062. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation & amortization, non-cash stock based compensation, and non-cash changes in the fair market value of derivatives, as detailed for the first three quarters of 2011 below.
Jan - Mar 11 Apr - Jun 11 Jul - Sep 11 ------------ ------------ ------------ Revenue 140,637 553,108 842,885 ------------ ------------ ------------ Net Income or Loss -728,217 -466,186 -775,578 ============ ============ ============ Depreciation 1,284 5,876 6,154 Amortization 753 118,865 185,629 Change In FMV of Derivative Liabilities -47,693 -159,263 54,134 Interest Expense 105,408 138,258 133,057 Taxes 0 -38 1,600 Non-Cash Share Based Compensation Expense 239,403 33,295 82,902 Adjusted EBITDA -429,062 -329,193 -312,102
For more information, please visit http://www.commercetel.com.
CommerceTel is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers via multiple channels. The only system of its kind, C4 is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements including words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the impact of intense competition, the continuation or worsening of current economic conditions and the condition of the domestic and global credit and capital markets as well as the Risk Factors disclosed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 14, 2011 and its Quarterly Reports on Form 10-Q. Further information on CommerceTel's risk factors is contained in its filings with the Securities and Exchange Commission. CommerceTel does not undertake any duty nor does it intend to update the results of these forward-looking statements.
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