Telecom iTeknik Reports Loss, Lower Revenue, But Debt Decrease
COMMERCE TOWNSHIP– The telecom provider iTeknik Holding Corp. (Other OTC:ITKH), a leader in the telecommunications industry through its Send Global subsidiary, posted a loss of $9,764 for the first six months of its fiscal year ended Dec. 31, vs. net income of $130,069 a year earlier. Revenue was $5.8 million, down from $6.2 million a year earlier.
The company said, however, that it also decreased its debt by 25 percent and cut its operating expenses 9.1 percent.
“There were two major influences on our financials for the period,” said iTeknik chairman and CEO Frederick W. Wicks. “First, Superstorm Sandy had a significant effect. Many customers and suppliers were shut down because of power failures. This included independent retail stores, affiliated telecommunication carriers and local phone access suppliers. In addition, the company received a deposit on the proposed sale of Send Global assets. The sale is subject to the results of a financial audit, so we had to enter this down payment as a current liability. At the same time there were expenses associated with the proposed sale that were paid in the second quarter. Therefore, we recorded a loss for the first six months. Had we been able to recognize the down payment as income, our financial report would have shown significant net income.”
The company recently announced that it had signed a purchase agreement to sell the assets of its Send Global subsidiary. Since then the board has been in discussions with a number of organizations to identify a suitable acquisition or merger once the sale of Send Global assets is finalized.
The complete financial report and continuing disclosure update can be viewed at www.otcmarkets.com/stock/ITKH/financials
Commerce Township-based iTeknik was formed to develop and launch new technology and products in the global communications market. Through its Send Global subsidiary, iTeknik provides wholesale and retail telecommunications services and products worldwide. Its services include voice over Internet protocol origination and termination; A-Z routing and switching; wholesale carrier routing services; reseller billing and reporting; Web-based reseller solutions; prepaid calling cards; international cellular calling; and retail point of sale systems. The company serves B2B carriers, telecom resellers, retail outlets and consumers direct through websites such as www.MyMobile011.com, www.GreatMinutes.com, www.AloBilady.com, www.IndiaMinutes.com and www.MexicoMinutes.com.