MPHASE ANNOUNCES RECORD QUARTELY AND ANNUAL REVENUE
Gaithersburg, MD , Oct. 15, 2019 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC:XDSL) (“mPhase” or the “Company”) today announced financial results for its fiscal 2019 year ended June 30, 2019. In conjunction with this release, the Company is also providing additional details on its strategy for the remainder of calendar year 2019.
For fiscal 2019, management is noting the following items of importance:
-- Revenue set an all-time record of $2.5 million, compared to no revenue during fiscal 2018 -- The Company recognized a non-cash stock-based compensation charge of $3.8 million related to CEO and CFO stock based awards -- mPhase posted an operating loss of $1.8 million and a net loss of $2.0 million -- Excluding the non-cash stock-based compensation, the Company generated proforma operating income of $2.1 million, representing an operating profit of 82%
Restructuring activities for mPhase began in January 2019 with the announcement of its new CEO Anshu Bhatnagar. Since that time, the Company has implemented the following strategic initiatives:
-- Formed mPhase Technologies India, Pvt. Ltd. and launched a Center of Excellence to spearhead software and technology development for existing and newly planned projects (February 2019) -- Acquired Travel Buddhi, a technology platform focused on enhancing travel via ultra-customization tools (March 2019); and acquired a controlling interest in Alpha Predictions LLP, a provider of commercial data analysis products (June 2019) -- Finalized agreement with iLearningEngines, Inc. to deliver customized learning and performance analytics solutions (August 2019)
“Investors may wonder how we have been able to achieve so much so quickly, but remember that I was in talks with mPhase for an extended period before taking over as CEO at the beginning of this year,” explained CEO Anshu Bhatnagar. “So, I already knew what intellectual property would be the first areas of emphasis and had a head-start on planning our new revenue-centric strategy. We closed some of our deals close to the fiscal year end to showcase the full effect of our efforts, but investors can see the first tangible results in today’s financials. Fiscal 2020 is shaping up to be a watershed year for mPhase.”
In preparation for multiple technology development programs, mPhase has engaged in an ongoing effort to build a strong base of expertise in multiple disciplines. The Company began the year with just two full-time employees, but subsequently added 40 software engineers and data analysis experts (through its subsidiaries) by fiscal year end. With this team now in place, key strategic goals for fiscal 2020 include:
-- Resume the Smart Nano-battery technology program with the U.S. Army that was suspended due to U.S. government budget cuts -- Collaborate on additional IP development, with a particular focus on needle-less drug delivery -- Launch Travel Buddhi ultra-customization travel platform by December 2019 -- Grow the newly-signed business agreement with iLearningEngines, with sequential quarterly growth expected as the business expands -- Assess additional acquisition opportunities that can add revenue within two quarters of closing
The Company continues to back recent guidance of potentially $30 million in annual revenue from existing sources, but will provide a more detailed forecast in future quarters when these revenue streams commence.
“The two revenue drivers over the next few quarters will be our iLearningEngines contract, and our Alpha Predictions subsidiary, which is working on some interesting global software engineering projects,“ explained CEO Bhatnagar. “The iLearningEngines business has some SaaS (software as a service) qualities, with the potential to layer on quarter over quarter of increasing, dependable revenue. We are close to launching Travel Buddhi as well, so by this time next year, we expect to have four to five independent revenue streams in place. The upcoming year will be a period of growth and change at mPhase.”
About mPhase Technologies, Inc.
With deep roots in scientific development, mPhase Technologies, Inc. is transforming from a research and development focus to a model stressing commercial technology-based profit centers. Under this new strategy, the Company is assembling industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com. Please follow us on twitter: @mPhase_Tech for the latest updates.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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