NEW YORK, TEUM /PRNewswire/ — Pareteum Corporation (NYSE MKT: TEUM) (“Pareteum” or the “Company”),a leading communications technology provider to global Mobile, MVNO, Enterprise and IoT markets, today announced financial results for the year ended December 31, 2016.
Highlights and achievements in 2016 and to-date:
- Improved to positive adjusted EBITDA of $110K in Q416 from negative adjusted EBITDA of $3.1 million in Q415 (adjustments to EBITDA include elements of nonrecurring expenditures, restructuring charges, stock based compensation, software development and non-cash adjustments);
- Added new top talent additions at executive management, board of directors, and other key operational levels, supporting Pareteum’s vision and growth mission.
- Improved revenue metric annualized revenue per employee in Q416 to $202,872 from $51,738 in Q415;
- Strengthened gross margin with Q416 margin of 79% and sequential quarterly gains from Q415 margin of 62%;
- Reported Q416 revenue of $3.1 million, nearly 5% ahead of expectations;
- Focused execution of growth strategy to leverage software and services platform to address back office and mobile virtual network enabler needs of carriers; enterprises; and services providers, developers and solutions integrators; an
- Completed substantial restructuring, with turnaround advanced as demonstrated by improvements in reported results, capital infusion, amended debt agreement, and growing roster of clients, prospective clients, and partners.
Hal Turner, Executive Chairman of Pareteum commented, “We are very pleased to note that in 2017, we have turned the page. With 2016 dedicated to executing our restructuring plan and turning around the business, we believe we have entered 2017 with a stable and robust platform that is well positioned to capitalize on the major trends now impacting global communications.”
Mr. Turner continued, “Our business is going where it needs to be going. Specifically, we have:
- new clients and brands are positioned to come on board;
- opened up new service segments that represent additional revenue streams;
- continued development progress on announced transactions; and
- announced four new sales agreements, including: a key carrier customer global roaming enablement deal; an important addition of content and streaming media capability to a major carrier mobile MVNE customer an important IoT technology enablement transaction, and a focused subscriber multi-country network enablement agreement.”
“In the age of the connected consumer, with our growth strategy addressing a combined $270 billion total market opportunity, the management team and Board of Directors of Pareteum are continuing to operate with a sense of urgency to execute and deliver. We remain committed to creating value through continued efficient execution of our plans to achieve sustainable, accretive operating and financial results,” Mr. Turner concluded.
Financial Highlights for the Year Ended 2016:
Revenue for the year ended December 31, 2016 was $12,855,811 compared to $31,015,453 for the year ended December 31, 2015.
Cost of service for the twelve-month period ended December 31, 2016 was $3,658,667, a decrease of $2,267,624 or 38%, compared to $5,926,291 for the twelve-month period ended December 31, 2015. The decrease was related to a decrease in cost of mobile bundled service business and network, decrease in cost of service related management and personnel expenses and reduction of non-cash related expenses.
Total operating expenses, which includes product development, sales and marketing, and general and administrative costs, for the twelve-month period ended December 31, 2016 was $16,592,700, a decrease of $2,234,664 or 12%, compared to $18,827,364 for the twelve-month period ended December 31, 2015. The decrease was related to reductions in staffing in the areas of product development, overhead, sales and marketing activities.
Cumulative annualized restructuring savings generated during 2015 and 2016, thus far, have totaled approximately $7.4 million and relate primarily to workforce reduction.
Conference Call Information:
Date: Wednesday, March 29, 2017
Time: 11:00 a.m. EDT
Domestic Dial-in Number: 1-800-279-9534
International Dial-in Number: 1-719-457-2506
U.K. Toll Free: 0 800 404 7656
Live webcast: https://public.viavid.com/index.php?id=123530
All interested participants should dial in approximately 5 to 10 minutes prior to the 11:00 a.m. EDT conference call and an operator will register your name and organization.
A replay of the call will be available approximately one hour after the end of the call through March 29, 2018, and can be accessed via Pareteum’s website (www.paretuem.com) or https://public.viavid.com/index.php?id=123530.
About Pareteum Corporation:
Pareteum Corporation, and its subsidiaries (also referred to as “Pareteum”, and “the Company”) provide a complete mobility cloud platform, utilizing messaging and security capabilities for the global Mobile, MVNO, Enterprise and IoT markets. For more information please visit: www.pareteum.com.
Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about Pareteum’s industry, management’s beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Pareteum’s filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Pareteum.