Elephant Talk Communications Corp.NYSEMKT
Tue, Oct. 4, 12:19 PM
- Elephant Talk Communications (ETAK +3.7%) says it's finished a long effort to divest its ValidSoft subsidiary.
- The move is coming via a management buyout. ValidSoft founder/CEO Pat Carroll is leading a buyout group, VSFT Holdings, to buy the unit for $2M in cash.
- Elephant Talk will use the proceeds to reduce the note of its senior secured lender, and a $1M unsecured note. It expects to see immediate value from ending the cash burn (as high as $380,000 monthly) from ValidSoft.
- The company also says the move makes it EBITDA neutral after adjusting for restructuring charges; it expects total value from the sale to be closer to $5M.
Tue, Sep. 13, 7:48 PM
- Elephant Talk Communications (ETAK -1.4%) has gotten NYSE to accept a plan the company offered to maintain compliance for listing on the exchange.
- In August, it had received a delisting warning tied to "whether the Company will be able to continue operations and/or meet its obligations as they mature."
- The NYSE accepted the company's new plan on a conditional basis through the end of this year, and will review the company at the end of the month to ensure it meets milestones.
Wed, Sep. 7, 10:18 AM
- Elephant Talk Communications (NYSEMKT:ETAK) is up 7.3% after signing a strategic deal with Expeto to expand into enterprise and "Internet of Things" markets.
- The companies will collaborate on bringing Elephant Talk's cloud-based mobility services to the new markets.
- Expeto works on controlling and managing core LTE networks. The partnership is designed to respond to a growing market demand from enterprises to utilize MVNO (mobile virtual network operator) services themselves.
- Gartner says that by 2018, the top 1,000 global enterprises will be implementing MVNO capabilities on some scale to support IoT, the companies note.
Tue, Aug. 16, 12:59 PM
- Elephant Talk Communications (ETAK -1.1%) swung to a loss in Q2 as it continued a restructuring to reverse recent struggles, and worked to mitigate the loss of Iusacell, a key customer, to the AT&T takeover.
- The company is through two phases of a three-phase revamp, saying it's yielding cumulative annualized savings of about $6.6M, mainly from headcount reduction (to 154 full-time equivalent workers from 265).
- Revenue per employee rose 85% to $87,000 from $47,000, in part due to those job cuts. Overall revenue tumbled to $3.3M from $24.3M, more fallout from the loss of Iusacell as a customer.
- Yesterday, the company pointed to reaffirmed support from its largest customer along with news of restructured financing to firm up its cash situation.
- Press Release
Tue, Aug. 16, 6:35 AM
Mon, Aug. 15, 6:46 PM
- Under a cash crunch, Elephant Talk Communications (ETAK +3.6%) has come to terms with its senior lender on restructuring its existing $6M loan.
- The new deal waives existing defaults, increases the loan facility by just over $1.2M, and resets the maturity date to this Dec. 31.
- The company has been pursuing a new approach since losing Iusacell, its second-largest customer, to its takeover by AT&T.
- It took the opportunity to highlight its strategic partnership with Vodafone Enabler, supportive of Elephant Talk "throughout the recent financial difficulties."
- "Already this last year, we grew our subscriber base on the ET platform by 9%, and with our new joint strategic initiatives we are looking to grow from 1.2M active subscribers to 1.6M subscribers in the next fiscal year," says Vodafone Enabler CEO Luis Jiménez-Tuñón.
Fri, Aug. 12, 6:33 PM
- In an 8-K filing, Elephant Talk Communications (ETAK +8.3%) discloses it received a new delisting warning this week from NYSE.
- The notice comes because the company "has sustained losses which are substantial in relation to its overall operations or its existing financial resources, or its financial condition has become sufficiently impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature."
- The company had received a delisting notice from the NYSE on May 26 as well. It plans to submit a revised plan of compliance by next Friday.
- Shares have lost 61.3% of value over the past 12 months, and fell below $1/share in fall 2014.
Thu, Jun. 2, 10:34 AM
- Elephant Talk Communications (ETAK -4%) has gotten a noncompliance notice from NYSE tied to stockholder equity standards.
- The company might also no longer be in compliance with financial impairment and stock price standards, it says.
- "We are in the midst of a major restructuring of the company which is progressing on plan and has already begun moving, and which we expect will regain compliance," says Executive Chairman Hal Turner.
- It'll need to submit a plan to regain compliance by June 27. It'll also need to pursue a reverse stock split in order to raise its price
Tue, May 17, 1:00 PM
- Elephant Talk Communications (NYSEMKT:ETAK) is 11.7% lower after its Q1 earnings fell short with a wider loss as the company pursued cost reductions including 35% headcount cuts.
- Revenues fell to $3.3M from a year-ago $5M after the termination of its contract with Iusacell. Net loss widened to $4.3M vs. a year-ago loss of $2.1M, on the lower revenue and restructuring charges taken.
- Headcount at quarter's end was 195, down from 253 at the end of 2015 and 303 a year ago -- boosting revenue per employee to $67K from Q4's $47K.
- The company says restructuring will bring not only improved productivity but "essentially, a cash neutral operating position during the second quarter of 2016."
- Press Release
Tue, May 17, 9:09 AM
Thu, Mar. 31, 10:01 AM
- Elephant Talk Communications (NYSEMKT:ETAK) is up 4.4% after an earnings report where fiscal year revenues rose 52% Y/Y and the company launched a winter restructuring.
- Net loss was $5M for the year, compared with a loss of $21.9M the year before, mainly driven by the full release of $11.6M in deferred revenue from a terminated contract with Iusacell.
- Total billings were $21.3M, while total revenues were $31M.
- In restructuring, headcount has gone from November's total of 264 employees to 199 today, and the company expects to have 160 employees by Q2's end.
- The company is likely to use its conference call to talk about options for divesting ValidSoft after a previous plan fell through.
- Conference call to come at 11 a.m. ET.
- Now read Elephant Talk Gets New Management To Execute A Turnaround »
Thu, Mar. 31, 9:17 AM
- Elephant Talk (NYSEMKT:ETAK): FY15 EPS of -$0.03
- Revenue of $31.02M (+52.4% Y/Y)
Wed, Mar. 23, 5:22 PM
- Elephant Talk Communications (ETAK +0.9%) today said it's given a notice of default to Cross River Initiatives, the company that set a binding agreement to acquire Elephant Talk's ValidSoft subsdiary.
- Last month, stock jumped when the company said it had a $12.5M deal with Cross River, which had paid a $500K advance in January on the deal. But Cross River was to wire $8M cash to Elephant Talk no later than March 21.
- Elephant Talk isn't totally foreclosing sealing the deal with Cross River, it says, but it can't give preference or exclusivity anymore -- meaning it's back to exploring strategic options for the unit.
- Despite the "setback" in the divestiture, Chairman Hal Turner said restructuring is otherwise on track and updates would come with the company's earnings release and conference call, set for next Tuesday.
Thu, Feb. 18, 11:42 AM
- Elephant Talk Communications (NYSEMKT:ETAK) has jumped 35% on the news that it's signed a deal to divest its ValidSoft unit for $12.5M.
- The company has a binding agreement with Cross River Initiatives for the transaction. Cross River is the entity that paid a $500K advance on Jan. 19.
- Cross River will wire $8M cash to Elephant Talk no later than March 21, and issue a $4M short-term note for the balance. It's also trying to advance $1.5M more to Elephant Talk before Feb. 29.
Thu, Feb. 4, 6:51 PM
- Elephant Talk (NYSEMKT:ETAK) says in an 8-K filing that it's entered a Severance and Independent Contractor Agreement with its CTO and Mobile co-president, Martin Zuurbier, who resigned from the firm effective Dec. 31.
- Zuurbier's resignation was for personal reasons, the filing says, and not because of a disagreement with the company.
- Shares of Elephant Talk are down 25% over the past month.
- Previously: Elephant Talk -3.1% on restructuring news (Jul. 22 2015)
- Previously: Elephant Talk taps new mobile co-presidents (Jan. 29 2015)
Fri, Jan. 22, 5:16 PM
- Elephant Talk Communications (ETAK +3.5%) has gotten a $500,000 advance that may be applied towards the purchase of its ValidSoft subsidiary by a potential buyer.
- The advance is structured like a loan, and there's the potential for an additional $1.5M advance.
- There's no guarantee of a sale of ValidSoft, but if it goes through, the potential $2M would be applied toward the purchase price. If the potential buyer doesn't fund the extra $1.5M by Monday, Elephant Talk will convert the $500K into a promissory note convertible into common shares at $0.30/share and a five-year warrant to buy additional shares at $0.45.