Click here to close now.

Welcome!

SAP Authors: Elizabeth White, Liz McMillan, Pat Romanski, Carmen Gonzalez, Automic Blog

News Feed Item

Fusion Reports Third Quarter 2012 Results

NEW YORK, NY -- (Marketwire) -- 11/15/12 -- Fusion Telecommunications International, Inc. (OTCQB: FSNN) has announced financial results for the third quarter ended September 30, 2012.

Fusion reported consolidated revenues of $10.0 million for the quarter ended September 30, 2012; essentially unchanged from revenues of $9.9 million for the quarter ended September 30, 2011. Revenues in the Carrier Services business segment were $9.4 million during the quarter, as compared to $9.3 million during the third quarter of 2011. Fusion also reported revenues of $0.58 million in the Corporate Services segment for the quarter ended September 30, 2012, a decrease of 5.8% compared to the same period of a year ago.

The Company's performance in the third quarter of 2012 was impacted by liquidity constraints and limited working capital available during the period, as well as a one-time loss in gross profit associated with migration activities to a new rating and routing optimization system that is expected to generate improved results through efficiencies in real-time monitoring and rate administration. Consolidated gross margin decreased to 8% for the third quarter of 2012 as compared to 11.2% for the third quarter of 2011.

Selling, general and administrative expenses ("SG&A") increased by 8% in the third quarter of 2012 compared to the same period of a year ago. The increase is largely due to professional fees and other expenses incurred in connection with the NBS acquisition transaction.

Fusion reported a net loss of $1.6 million for the quarter ended September 30, 2012, an increase of $0.5 million over the quarter ended September 30, 2011. For the third quarter of 2012 and 2011, the net loss applicable to common stockholders was $1.7 million and $1.2 million, respectively, or $0.01 per share.

For the quarter ended September 30, 2012, adjusted EBITDA loss (earnings from continuing operations before interest, taxes, depreciation, amortization, and specific non-recurring and non-cash adjustments) increased $0.4 million, or 45%, to $1.3 million, as compared to $0.9 million for the quarter ended September 30, 2011.

Fusion's third quarter 2012 results do not include the results of NBS, a Unified Communications and cloud services provider, which was acquired on October 29, 2012. For the three months ended September 30, 2012, NBS generated preliminary unaudited revenues of approximately $6.7 million and adjusted EBITDA of approximately $1.4 million, while achieving a gross margin of approximately 50% during the quarter. For the nine months ended September 30, 2012, NBS generated preliminary unaudited revenues of $20.3 million and adjusted EBITDA of $3.9 million.

As of September 30, 2012 and December 31, 2011, the Company had current assets of $6.0 million and 2.8 million, respectively. Current liabilities as of September 30, 2012 were $19.9 million, compared to $14.8 million at December 31, 2011. Stockholders' deficit at September 30, 2012 and December 31, 2011 was $12.9 million and $10.6 million, respectively.

Matthew Rosen, Chief Executive Officer of Fusion, said, "The last several months have been transformational for the Company and culminated in the completion of our previously announced acquisition of NBS, a profitable Unified Communications and cloud services provider, and the closing of $22.5 million in financing, from which a substantial portion of the proceeds were used to pay the purchase price of NBS. NBS adds 5,000 business customers to the Company and in fiscal 2011 generated $26.5 million in revenue, more than 95% of which was monthly recurring and contracted, and $4.9 million in adjusted EBITDA. We also expect to achieve substantial operating synergies and generate positive adjusted EBITDA in the first quarter of 2013. NBS's robust, scalable and flexible proprietary services platform, in combination with a national network that includes on-net hubs and facilities in several major markets, advances our cloud services strategy and provides a strong foundation for future acquisitions, all of which we expect to accelerate the pace of revenue and margin growth and significantly improve results."

Expanding on Mr. Rosen's comments, Don Hutchins, President and Chief Operating Officer of Fusion, said, "We are pleased that the dedicated efforts we exercised over the third quarter to conclude these exciting transactions have resulted in our beginning the fourth quarter with a significant financing and an acquisition that will help position us as a leading provider of Unified Communications and cloud services. The integration of products and services, staff, infrastructure and operations is well underway, and we have already begun to cross-sell our complementary products and services to our combined customer base. We were especially delighted to welcome the experienced NBS professionals to the Fusion team, and look forward to working together to build on our organic growth and achieve the operational synergies we expect to drive further improvements in our financial performance."

Use of Non-GAAP Financial Measurements:

The Company believes that EBITDA (earnings from continuing operations before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used in the communications industry to evaluate companies on the basis of operating performance and leverage. The Company also believes that EBITDA provides investors with a measure of the Company's operational and financial progress that corresponds with the measurements used by management as a basis for allocating resources and making other operating decisions. Adjusted EBITDA provides an adjusted view of EBITDA that takes into account certain significant non-recurring transactions, if any, such as impairment losses and professional fees associated with pending acquisitions, which vary significantly between periods and are not recurring in nature, as well as certain recurring non-cash charges such as stock-based compensation. Although the Company uses adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. EBITDA and adjusted EBITDA are not intended to represent cash flows for the period presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading "Reconciliation of Net Loss to EBITDA and Adjusted EBITDA", immediately following the Consolidated Balance Sheets included in this press release.

Forward Looking Statements:

Statements in this press release that are not purely historical facts, including statements regarding Fusion's beliefs, expectations, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1996. Such statements consist of any statement other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may", "expect", "anticipate", "intend", "estimate" or "continue" or the negative thereof or other variations thereof or comparable terminology. The reader is cautioned that all forward-looking statements are speculative, and there are certain risks and uncertainties that could cause actual events or results to differ from those referred to in such forward-looking statements. This disclosure highlights some of the important risks regarding the Company's business. The primary risk of the Company is its ability to raise new and continued capital to execute its comprehensive business strategy. There may be additional risks associated with the integration of businesses following an acquisition, the Company's ability to comply with its senior debt agreements, concentration of revenue from one source, competitors with broader product lines and greater resources, emergence into new markets, natural disasters, acts of war, terrorism or other events beyond the Company's control, the termination of any of the Company's significant contracts or partnerships, the Company's inability to maintain working capital requirements to fund future operations or the Company's ability to attract and retain highly qualified management, technical and sales personnel, and the other factors identified by us from time to time in the Company's filings with the Securities and Exchange Commission, which are available through http://www.sec.gov. However, the risks included should not be assumed to be the only things that could affect future performance.

About Fusion

Fusion is a global provider of Unified Communications and cloud solutions to businesses and carriers worldwide. Fusion's advanced, high availability service platform enables the integration of leading edge products and services in the cloud, including voice, data, managed network services, cloud computing, storage, information technology, data center services and security. Our solutions are customized to serve the unique needs of specialized vertical markets, with a strong focus on HIPAA-compliant solutions for the healthcare industry. Fusion's innovative yet proven cloud-based solutions lower our customers' cost of ownership, and deliver new levels of security, flexibility, scalability and speed of deployment. For more information, please visit www.fusiontel.com.


       Fusion Telecommunications International, Inc. and Subsidiaries
                   Consolidated Statements of Operations
                                (unaudited)

                         Three Months Ended           NIne Months Ended
                            September 30,               September 30,
                     --------------------------  --------------------------
                         2012          2011          2012          2011
                     ------------  ------------  ------------  ------------
Revenues             $  9,959,965  $  9,931,247  $ 31,714,105  $ 30,778,563
Cost of revenues        9,164,247     8,820,457    28,172,796    27,621,852
                     ------------  ------------  ------------  ------------
Gross profit              795,718     1,110,790     3,541,309     3,156,711
Operating expenses:
Depreciation and
 amortization              94,426       101,137       286,603       418,205
Selling general and
 administrative
 expenses               2,215,736     2,051,647     6,517,229     6,218,391
Advertising and
 marketing                     15         1,613         8,048         6,995
                     ------------  ------------  ------------  ------------
Total operating
 expenses               2,310,177     2,154,397     6,811,880     6,643,591
                     ------------  ------------  ------------  ------------
Operating loss         (1,514,459)   (1,043,607)   (3,270,571)   (3,486,880)
                     ------------  ------------  ------------  ------------
Other (expenses)
 income:
Interest expense,
 net of interest
 income                   (56,861)      (37,432)     (160,477)     (141,444)
Other                     (63,576)      (27,101)     (224,419)       82,728
                     ------------  ------------  ------------  ------------
Total other
 (expenses) income       (120,437)      (64,533)     (384,896)      (58,716)
                     ------------  ------------  ------------  ------------
Loss from continuing
 operations            (1,634,896)   (1,108,140)   (3,655,467)   (3,545,596)
Discontinued
 operations:
Income from
 discontinued
 operations                     -        (2,833)            -         5,531
                     ------------  ------------  ------------  ------------
Net loss             $ (1,634,896) $ (1,110,973) $ (3,655,467) $ (3,540,065)
Preferred stock
 dividends in
 arrears                 (101,451)     (101,729)     (302,149)     (368,446)
                     ------------  ------------  ------------  ------------
Net loss applicable
 to common
 stockholders:       $ (1,736,347) $ (1,212,702) $ (3,957,616) $ (3,908,511)
                     ============  ============  ============  ============
Basic and diluted loss per common
 share:
Loss from continuing
 operations          $      (0.01) $      (0.01) $      (0.02) $      (0.03)
Loss from
 discontinued
 operations                     -         (0.00)            -          0.00
                     ------------  ------------  ------------  ------------
Loss per common
 share               $      (0.01) $      (0.01) $      (0.02) $      (0.03)
                     ============  ============  ============  ============
Weighted average
 common shares
 outstanding:
Basic and diluted     166,432,351   144,588,746   164,107,320   138,994,794
                     ============  ============  ============  ============


       Fusion Telecommunications International, Inc. and Subsidiaries
                        Consolidated Balance Sheets

                                               September 30,   December 31,
                                                    2012           2011
                                               -------------  -------------
                                                (unaudited)
ASSETS
Current assets:
Cash and cash equivalents                      $   3,727,395  $       3,047
Accounts receivable, net of allowance              1,695,863      2,400,427
Prepaid expenses and other current assets            530,545        388,343
                                               -------------  -------------
Total current assets                               5,953,803      2,791,817
                                               -------------  -------------
Property and equipment, net                          717,514        831,402
                                               -------------  -------------
Other assets:
Security deposits                                    437,141        437,141
Restricted cash                                      162,933        299,536
Intangible assets, net                                78,423        165,578
Other assets                                          13,833         31,494
                                               -------------  -------------
Total other assets                                   692,330        933,749
                                               -------------  -------------
TOTAL ASSETS                                   $   7,363,647  $   4,556,968
                                               =============  =============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Promissory notes payable - non-related parties $     458,966  $     292,039
Promissory notes payable - related parties         5,137,364      4,922,364
Accounts payable and accrued expenses             10,381,997      9,448,981
Escrow payable                                     3,875,250              -
Current liabilities from discontinued
 operations                                           96,345         97,835
                                               -------------  -------------
Total current liabilities                         19,949,922     14,761,219
                                               -------------  -------------
Long-term liabilities:
Other long-term liabilities                          298,945        380,243
                                               -------------  -------------
Total long-term liabilities                          298,945        380,243
                                               -------------  -------------
Commitments and contingencies
Stockholders' deficit:
Preferred stock                                           50             50
Common stock                                       1,664,322      1,537,113
Capital in excess of par value                   138,552,999    137,325,467
Accumulated deficit                             (153,102,591)  (149,447,124)
                                               -------------  -------------
Total stockholders' deficit                      (12,885,220)   (10,584,494)
                                               -------------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT    $   7,363,647  $   4,556,968
                                               =============  =============


       Fusion Telecommunications International, Inc. and Subsidiaries
          Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
                                (unaudited)

                         Three Months Ended           Nine Months Ended
                            September 30,               September 30,
                     --------------------------  --------------------------
                         2012          2011          2012          2011
                     ------------  ------------  ------------  ------------
Net loss             $ (1,634,896) $ (1,110,973) $ (3,655,467) $ (3,540,065)
Income from
 discontinued
 operations                     -         2,833             -        (5,531)

Interest expense and
 other financing
 costs, net of
 interest income          123,090        45,043       395,521       149,054
Depreciation and
 amortization              94,426       101,137       286,603       418,205
                     ------------  ------------  ------------  ------------
EBITDA                 (1,417,380)     (961,960)   (2,973,343)   (2,978,337)
Acquisition
 transaction
 expenses                  82,719             -       169,981             -
Loss on disposal of
 property and
 equipment                      -        24,615             -        24,615
Non-cash adjustment
 to tax accruals                -             -       (98,141)            -
Stock-based
 compensation
 expense                   31,503        38,603       100,685        71,990
                     ------------  ------------  ------------  ------------
Adjusted EBITDA      $ (1,303,158) $   (898,742) $ (2,800,818) $ (2,881,732)
                     ============  ============  ============  ============

Fusion
Laura Nadal
212-389-9720
Email Contact

or

Hayden IR, for Fusion
James Carbonara
646-755-7412
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
The IoT market is projected to be $1.9 trillion tidal wave that’s bigger than the combined market for smartphones, tablets and PCs. While IoT is widely discussed, what not being talked about are the monetization opportunities that are created from ubiquitous connectivity and the ensuing avalanche of data. While we cannot foresee every service that the IoT will enable, we should future-proof operations by preparing to monetize them with extremely agile systems.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. Learn about IoT, Big Data and deployments processing massive data volumes from wearables, utilities and other machines.
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-critical systems. ISS has completed many successful projects in Healthcare, Commercial, Manufacturing, ...
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
For years, we’ve relied too heavily on individual network functions or simplistic cloud controllers. However, they are no longer enough for today’s modern cloud data center. Businesses need a comprehensive platform architecture in order to deliver a complete networking suite for IoT environment based on OpenStack. In his session at @ThingsExpo, Dhiraj Sehgal from PLUMgrid will discuss what a holistic networking solution should really entail, and how to build a complete platform that is scalable, secure, agile and automated.