Elephant Talk Communications Q2 revenue $3.3 million
Staff Writer |
Elephant Talk Communications announced its financial results for the second quarter ended June 30, 2016. Revenue for the second quarter and six months year-to-date 2016 totaled $3.3 million and $6.5 million.
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This compares with $19.2 million and $24.3 million, for the same periods the year prior, respectively.
The decrease for both the quarter and six months year-to-date was primarily attributable to the loss of the Iusacell contract, including the full release of deferred revenue of $11.6 million in 2015 as well as compensation paid by Iusacell in June 2015 for the termination of the contract excluding depreciation and amortization.
Excluding, the impact of Iusacell for 2015, second quarter and six month year-to-date revenues declined 15 percent year over year from $3.8 million to $3.3 million and $7.7 million to $6.5 million, respectively.
Elephant Talk Communications' cost of service excluding depreciation and amortization for the second quarter 2016 totaled $1.0 million compared with $1.4 million for the same period the prior year.
General and administrative expenses for the second quarter 2016 totaled $2.2 million compared with $2.7 million for the same period the prior year. Workforce reduction severance cost during the second quarter 2016 was $0.2 million.
Excluding these restructuring charges, the general and administrative expense decreased by 26% year-over-year.
Elephant Talk Communications' net loss for the second quarter 2016 totaled $2.8 million compared with net income of $9.5 million for the same period the year prior mainly attributable to the absence of Iusacell revenue in 2016 and the impact of the restructuring charges in the second quarter of 2016.
Total headcount as of June 30, 2016 was 154 compared with 253 as of December 31, of 2015, and 264 as of June 30, 2015.
At the end of the second quarter 2016, revenue per-employee-was approximately $87 thousand, up from approximately $47 thousand at the end of the fourth quarter 2015, primarily due to the reduction in headcount.
Workforce reduction expenses, primarily related to employee severances and asset write-offs totaled $0.2 million for the second quarter of 2016.
For the period from November 30, 2015 to June 30, 2016, total workforce reduction expenses totaled $2.1 million.
Cumulative annualized savings generated since November 30, 2015 related primarily to workforce reduction is approximately $6.6 million.
During the first half 2016, the Company consummated a private placement of approximately $2.3 million for working capital purposes. Total raised to date under this private placement offering totaled $3.5 million. ■