- Net Income Positive, $4 Million Improvement in Working Capital,
Acquisition Completed of One Ring Networks, Results Exceed Management's
Expectations -
OMAHA, NE - June 17, 2008 - Rapid Link, Incorporated (OTCBB: RPID), one
of the leading providers of WiMAX and Communication Services, announced
financial results for its second quarter ended April 30, 2008.
SECOND QUARTER FISCAL 2008 HIGHLIGHTS
Net Income of over $400 thousand for the quarter, and approximately $200
thousand fiscal year to date. Over $1 million net income gain from
discontinued operations. Earnings per share of $.01 available to common
stockholders for the second quarter fiscal 2008.
Working capital improved over $4 million during the second quarter.
Completed acquisition of One Ring Networks.
Three Months Ended April 30,
2008
2007
Total Revenue $ 3,450,350 $
3,720,098
Gross Profit $ 1,126,997 $
1,158,602
Gross Profit Percentage 33%
31%
Net Income $ 442,164
$ (506,458)
Net Income (Loss per Share) $ .01 $
(.01)
"In this second fiscal quarter of 2008, the company has fully integrated
Communications Advantage into our operations, and recently completed the
acquisition One Ring Networks, Inc. As a result of the One Ring
acquisition, we further evolve our goal of becoming a provider of
communication services via fixed wireless and fiber optic transport of
voice and internet." said John Jenkins, Rapid Link's Chief Executive
Officer.
"We are pleased to have been able to back up our strong 2007 year-end
numbers and earnings with a solid second quarter of fiscal 2008. The
financing transactions that we completed during the second quarter will
help enable us to grow through both organic means and strategic
acquisitions. Improvements in our working capital position and recent
acquisitions are helping the Company to implement its strategic growth
model. We are beginning to see positive operating results and have set
our sights on realizing an aggressive yet attainable growth model for
the balance of our fiscal year." stated Chris Canfield, Rapid Link's
President and Chief Financial Officer.
Three Months Ended April 30,
2008
2007
Revenues $ 3,450,350
$ 3,720,098
Costs and expenses:
Costs of revenues 2,323,353
2,561,496
Sales and marketing 193,406
307,391
General and administrative 1,063,053
841,698
Depreciation and amortization 268,432
235,619
3,848,244
3,946,204
Operating loss (397,894)
(226,106)
Other income (expense):
Noncash financing expense (79,928)
(284,473)
Interest expense (74,418) (70,669)
Related party interest expense (64,800)
(58,491)
Foreign currency exchange gain (2,796)
2,442
Other - -
(221,942)
(411,191)
Loss from continuing operations (619,836) (637,297)
Discontinued operations
Gain on disposal of discontinued operations
1,062,000
-
Net income (loss) $ 442,164
$ (637,297)
Basic and diluted income (loss) per share:
Loss per share from continuing operations $ (.01)
$ (.01)
Income per share from discontinued operations .02
-
Net income (loss) per share $ .01
$ (.01)
Basic and diluted weighted average shares outstanding
66,987,044 51,750,419
Including non-cash items, net income available to common stockholders
for the quarter ended April 30, 2008 was $442,164 vs. a net loss to
common stockholders of $637,297 for the same period of fiscal 2007.
For the three months ended April 30, 2008, Rapid Link incurred $79,928
in non-cash interest expense, and a gain on disposal of discontinued
operations of $1,062,000. Additional non-cash items incurred during the
year include depreciation and amortization expense, share-based
compensation expense, bad debt expense, and loss on property and
equipment.
About Rapid Link
Rapid Link, Incorporated is a Diversified Communication Services
company, supplying bundled internet and voice services to Business and
Residential customers. Rapid Link offers broadband access via its own
facilities to ensure fast and reliable delivery of its content. As a
leading licensed WiMAX carrier, Rapid Link is on the cutting edge of
this exciting new technology. We are one of the only carriers that can
offer an end-to-end solution for our customers without a dependency on
any other company's resources.
For more information, visit www.rapidlink.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: With the exception of historical information, the
statements set forth above include forward-looking statements that
involve risk and uncertainties. The Company wishes to caution readers
that a number of important factors could cause actual results to differ
materially from those in the forward-looking statements. Those factors
include, but are not limited to, risks and uncertainties such as the
failure to satisfy contractually agreed upon closing conditions that may
delay or prevent the closings of subsequent debt financings contemplated
by the applicable agreements; the risk factors noted in the Company's
filings with the United States Securities and Exchange Commission, such
as the trading price of the Company's common stock reaching levels that
would cause funding to occur; the rapidly changing nature of technology,
evolving industry standards and frequent introductions of new products,
services and enhancements by competitors; the competitive nature of the
markets for the Company's products and services; the Company's ability
to gain market acceptance for its products and services; the Company's
ability to fund its operational growth; the Company's ability to attract
and retain skilled personnel; the Company's ability to diversify its
revenue streams and customer concentrations; and the Company's reliance
on third-party suppliers.
Contact:
Investor Relations
Rapid Link, Incorporated
Tel.: 402-392-7561
Or:
David Elias
Investor Relations
DME Capital
516-967-0205
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