MPHASE REPORTS 2nd CONSECUTIVE PROFITABLE QUARTER AND RECORD 1,111% INCREASE IN ANNUAL REVENUE ...
Gaithersburg, MD, Jan. 05, 2021 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”) reported financial results for its fiscal 2020 fourth quarter and year ended June 30, 2020. In conjunction with this release, the Company is also providing additional details on its strategy for the upcoming calendar year 2021.
For fiscal Q4 and full year 2020, management is noting the following items of importance:
- Revenue set an all-time record of $30.3 million during fiscal year 2020, compared to $2.5 million of revenue reported during fiscal year 2019, representing a 1,111% year-over-year increase;
- Fiscal Q4 2020 revenue increased 204% to $7.6 million, compared to $2.5 million during fiscal Q4 2019;
- Fiscal Q4 2020 results represented the second consecutive profitable quarter, with net income of approximately $0.8 million;
- Gross profit margin was 25.9% for fiscal Q4 2020 and 25.4% for fiscal year 2020, which is within the target range established throughout fiscal year 2020; and
- Stockholders’ equity achieved a new record at $5.5 million, which is significantly higher than the $0.6 million reported at fiscal year-end June 30, 2019.
“Although our full year results were affected by non-cash charges and pandemic-related delays, the fiscal Q4 2020 results provide a strong indication of the momentum we are carrying into 2021,” explained mPhase CEO Anshu Bhatnagar. “Q4 was during the heart of the pandemic, but we managed to maintain a profitable business, without much benefit from some of the initiatives (such as travel) that we previously expected to be growth drivers during fiscal year 2020. We are entering 2021 with a much stronger portfolio and with shareholder equity now at $5.5 million, we can check off an important requirement for a future listing on Nasdaq.”
mPhase has multiple growth drivers for calendar 2021, including the following:
- Expected near-term filing of its fiscal Q1 2021 results, enabling the Company to regain reporting compliance;
- Continued product development efforts at the three primary divisions, Learning Track (learning management), CloseComms (customer engagement), and Travel Buddhi (trip planning);
- Exploration of partnership opportunities for the mPhase smart-battery technology and medical patents;
- Discussions with battery-oriented companies targeting additional commercial markets; and
- Goal to double the number of potential revenue streams by mid-year 2021.
“For our upcoming fiscal Q1 2021 filing, investors can expect continued steady results driven by our core LMS business,” stated CEO Bhatnagar. “But we also know that investors are looking for a resumption of growth during 2021. We expect a positive tipping point in our travel and customer engagement businesses when the pandemic eventually begins to fade this year, but we are not standing still in terms of new growth strategies. We have been working on a number of important initiatives to monetize our patent portfolio and are exploring ways to enter new categories in the battery space. Technology partnership initiatives will be a major focus during the first calendar quarter of this year.”
Financial Results and Corporate Update Conference Call
Due to the expected close proximity between today’s fiscal year 2020 10-K filing and the fiscal 1Q 2021 10-Q filing, the Company has elected to hold its earnings call after it becomes current following the filing of its Q1/2021 results. Dial in information will be provided in conjunction with the fiscal Q1 2021 results.
About mPhase Technologies
mPhase is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. 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; and at www.learningtrack.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.