(PRWEB) April 20, 2004
The Company saw significant improvement in many areas versus the first quarter of 2003 with net income soaring 447% to record levels of $661,681 versus $120,833 and sales increasing 33% to $5,087,930 from $3,830,997. Gross profit margin of 47.4% of revenue was up 5.7 percentage points from last year's levels. The strong quarter was driven by robust sales attributable to the agreements entered into earlier this year by the company. These agreements provided Spantel with an immediate increase in sales and profits, without a significant increase in operating expenditures due to better network utilization.
According to Spantel's President, Jose Ramon Basterra, "We are very optimistic about the future of our company after five consecutive profitable quarters. Our improved financial position has greatly enhanced our ability to concentrate on a growth strategy centered on acquisitions rather that relying solely on traditional marketing approaches we have used in the past." Mr. Basterra went on to say, "As the telecommunications industry within Spain consolidates, it will continue to create many desirable opportunities for us to aggressively target. Several of the secondary carriers and resellers who have a niche market have been unable to achieve profitability or lack the cash flow required for growth making them ideal candidates for Spantel."
"The company also is able to market our services to many of these candidates who do not meet our acquisition criteria. We have a proprietary billing system, our own network and other services that will enable them to become competitive and profitable. In either situation, we have positioned ourselves to capture the traffic which will ultimately reduce many of our costs and increase our profitability."
"The Company will continue to focus on acquisitions and network agreements as the primary sources for growth," says Mr. Basterra. "We are very pleased with our recent accomplishments and remain committed to making every effort in order to bring value to our shareholders."
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among other things, the competitive environment in the telecommunications industry in general and in the Company's specific market areas, inflation, changes in costs of goods and services and economic conditions in general. Those and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.
Spantel Communications, Inc.
Mr. Robert Carlin
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