CallWave Announces Results for Third Quarter of Fiscal 200528 April 2005
CallWave, Inc. a leading provider of VoIP applications, today reported financial results for the three- and nine-month periods ended March 31, 2005.
For the third quarter of fiscal 2005, CallWave reported total revenue of $11.2 million, an increase of 10% over $10.2 million reported in the third quarter of fiscal 2004. Net income for the third quarter of 2005 decreased 41% to $2.3 million, or $0.11 per diluted share, from $3.9 million, or $0.25 per diluted share reported in the prior year. Net income for the 2005 third quarter includes $0.3 million, or $0.02 per diluted share of tax benefits. Weighted average fully diluted shares outstanding for the quarters ended March 31, 2005, and March 31, 2004, were 21,331,000 and 15,354,000, respectively.
Gross margins for the third quarter were 73%, and operating margins were 14%. CallWave used $0.6 million in cash in its operations and closed the quarter with $54.0 million in cash, cash equivalents and marketable securities. At March 31, 2005, CallWave had 856,000 paid subscribers who represented 958,000 lines.
For the nine months ended March 31, 2005, CallWave reported total revenue of $33.9 million, an increase of 19% over $28.5 million reported in the first nine months of fiscal 2004. Net income for the period increased 5% to $9.5 million, or $0.48 per diluted share, from $9.1 million, or $0.59 per diluted share reported in the same period of the prior year. Net income for the 2005 nine-month period includes $2.1 million, or $0.10 per diluted share of tax benefits.
"The third quarter highlighted both the opportunities and challenges in our business," commented David Hofstatter, President and CEO of CallWave. "The performance of our core landline enhancement business showed the continued potential of that market. At the same time, we experienced the headwinds of simultaneously ramping up new indirect partners and rolling out our new mobile VoIP software. Nevertheless, we remain highly optimistic about our investments in these growth areas.
"It's important to note that our strategy to grab market share in the mobile VoIP market is in no way an abandonment of our cash-generating landline business. To the contrary, new mobile features and services add value to the landline customer base and to our landline carrier partners by extending customer life and increasing revenue per user. Our strategy is to continue making investments in technology and distribution partnerships that can be leveraged across both the fixed and mobile connections that consumers use."
Conference Call Details
The CallWave Third Quarter 2005 teleconference and Webcast is scheduled to begin at 4:30 p.m. Eastern Time, on Wednesday, April 27, 2005. To access the live Webcast, please visit the investor relations section of the Company's website http://www.callwave.com at least 30 minutes prior to the scheduled time to download any necessary audio or plug-in software. An audio replay of the call will also be available to investors beginning at 8:00 p.m. ET on April 27, 2005, through May 11, 2005, by dialing 800-405-2236 and entering the passcode 11028618.
About CallWave
CallWave is a leader in VoIP enhanced services. The company provides VoIP application services on a subscription basis that add features and functionality to the telecommunications services used in mainstream homes and small offices. CallWave's proprietary VoIP software allows subscribers to get more out of their existing networks -- landline, mobile, and IP -- by adding software-based call-handling features, and by bridging all three networks to help subscribers get their important calls. Founded in 1998, CallWave is headquartered in Santa Barbara, California. For further information, please visit www.callwave.com.
Source: bussinesswire
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