Conference Call to be Held at 4:30 p.m. EDT on May 15, 2017
NEW YORK, May 15, 2017 — Pareteum Corporation (NYSE MKT: TEUM) (“Pareteum” or the “Company”), a leading communications technology provider to global Mobile, MVNO, Enterprise and IoT markets, today announced financial results for the first quarter ended March 31, 2017.
First Quarter 2017 Highlights:
- The Company significantly expanded the technical capabilities of its Global Mobility Cloud Platform, adding advanced messaging functionality supporting the adoption of Internet of Things (IoT) devices and the deployment of data-rich broadband 4G services for Mobile Virtual Network Operators (MVNOs) customers through a new engagement contract from Vodafone. These developments will enable the Company and its communications service provider customers the ability to more easily scale their businesses globally, reaching new customer segments while delivering valuable service offerings.
- During the quarter, the Company attracted several accomplished industry veterans to the team, bringing valuable expertise and a wide ranging global network of high-level relationships to the firm. Key additions in the quarter include the appointments of Ted O’Donnell as Chief Financial Officer, Chris Hills as Vice President of Global Connectivity, Nick Barter as VP of EMEA and Luis Jimenez-Tuñon, Former CEO of Vodafone Enabler Spain S.L., as a new independent director.
- Added Pronto Telecommunications, a converged voice and data applications solution provider serving Telcos, ISPs, and Cable Operators as a new resale partner providing international IoT services to customers and entered a technology integration and revenue sharing partnership with AirFox for its service enablement platform. AirFox’s technology allows Pareteum’s Mobile Network Operators (MNOs) and Mobile Virtual Network Operator (MVNO) customers to rapidly and cost-effectively create new business models and revenue streams through flexible application plans and mobile advertising.
- Demonstrating confidence in the inherent value of the business, during the quarter members of management and select directors participated in a series of common stock purchase transactions including a private transaction as well as individual open market stock purchases made under Form 4.
“Our business performed as expected in the first quarter and it is now our plan to support future growth while maintaining the disciplined financial stewardship that has facilitated our business turnaround. We continue to see the potential for our solutions in the market driven by an increasingly connected wireless world and our goal is to work with our growing list of customers and partners to achieve our vision,” said Hal Turner, Executive Chairman of Pareteum.
First Quarter 2017 Financial Highlights:
- Reported Q1 2017 revenue of approximately $2.8 million compared to $3.3 million last year, the decrease being due to the divestiture of the ValidSoft subsidiary and clients seasonal churn.
- Gross margins increased from 66% to 70% on a comparative basis during the quarters ending March 31, 2016 and 2017, respectively, due to a reduction of direct costs during 2016.
- Operating expenses for the period of $4.8 million, decreased 37% from $7.5 million last year as a result of the company-wide restructuring program implemented throughout 2016.
- Loss from operations improved by 53% to ($1.9) million for the quarter compared to ($4.3) million in 2016
- Net Loss per weighted common share of ($0.14) for the quarter improved by 79% from ($0.66) in 2016.
- Adjusted EBITDA in the quarter was ($198,000), reflecting a 91% improvement from the negative EBITDA of ($2.1) million reported last year.
Mr. Turner concluded, “As we navigate Pareteum through the coming months and years, we have bold expectations for growth in all of our service suites, driven by the advancing technical capabilities of our software as a service platform coupled with our strong and growing team. Pareteum is well positioned to capitalize on the global trends driving the connected world which will create value for both our customers and shareholders.”
Conference Call Information:
Date: May 15, 2017
Time: 4:30 p.m. EDT
Domestic Dial-in Number: 1-888-430-8691
International Dial-in Number: 1-719-325-2170
U.K. Toll Free: 0 808 101 1147
Live webcast: http://public.viavid.com/index.php?id=124441
All interested participants should dial in approximately 5 to 10 minutes prior to the 4:30 p.m. EDT conference call and an operator will register your name and organization.
A replay of the call will be available approximately one hour after the end of the call through May 15, 2018, and can be accessed at http://public.viavid.com/index.php?id=124441.
About Pareteum Corporation:
Pareteum Corporation and its subsidiaries provide a complete mobility cloud platform, utilizing messaging and security capabilities for the global Mobile, MVNO, Enterprise, Software-as-a-Service and IoT markets. The Company’s software solutions allow any organization to harness the power of a wirelessly connected world by delivering seamless connectivity and subscriber management capabilities that provides end-to-end control of millions of connected devices. Mobile Network Operator (MNO) customers include Vodafone, the world’s second largest mobile operator by customer count, Zain, one of the largest mobile operators in the Middle East, as well as MVNO customers such as Lebara and Lowi. For more information please visit: www.pareteum.com.
Forward Looking Statements:
Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about Pareteum’s industry, management’s beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Pareteum’s filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Pareteum Corporation.
Discussion of Non-GAAP Financial Measures:
Pareteum’s management believes that the non-GAAP measures of (1) “EBITDA” and (2) “Adjusted EBITDA” enhance an investor’s understanding of Pareteum’s financial and operating performance by presenting (i) a focus on core operating performance and (ii) comparable financial results over various periods. Pareteum ‘s management uses these financial measures for strategic decision making, forecasting future financial results and operating performance. The presentation of non-GAAP (“Generally Accepted Accounting Principles”) financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
EBITDA and Adjusted EBITDA Definition:
“EBITDA” is a non-GAAP measure defined as earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” is a non-GAAP measure defined by Pareteum as “EBITDA” excluding stock based compensation, restructuring charges, nonrecurring expenditures and certain software and non-cash adjustments made during the 2016 restructuring that are not applicable in 2017.