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
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.
- Press Release
- Now read Elephant Talk Gets New Management To Execute A Turnaround »
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.
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.
Dec. 17, 2015, 9:57 AM
- Elephant Talk (NYSEMKT:ETAK) is up 23.4% amid a number of leadership changes in its ongoing restructuring plans.
- Gary Brandt has been named chief restructuring officer, and finance, legal and human resources functions will report directly to him. Interim CEO Tim Payne is stepping out of that role and resuming responsibilities for the company's North American operations.
- Dr. Armin Hessler has become chief operating officer. In addition, Robert Skaff has become an independent director, replacing Jaime Bustillo.
- Hal Turner -- named executive chairman last month -- says more executive appointments are coming in the first half of 2016.
Nov. 16, 2015, 7:20 PM
- Elephant Talk (ETAK -13.2%) posted a Q3 loss that narrowed compared to restated results from last year, though revenue declined sharply with the end of a key deal and missed expectations.
- Adjusted EBITDA was -$1.2M vs. an expected $0.5M, compared to a year-ago EBITDA profit of $1.4M after restatement. The company's relationship with Iusacell was terminated as the latter was acquired by AT&T, which meant the loss of about $3.9M in anticipated quarterly cash flow.
- Conference call to come tomorrow at 4:15 p.m. ET.
Oct. 8, 2015, 9:53 AM
- Elephant Talk Communications (NYSEMKT:ETAK) is 13.1% higher on news that it entered into a cloud service and software license deal to provide MVNO platform service to a "Tier 1" U.S. mobile operator.
- The company will support a number of MVNO brand launches in the deal beginning later in the quarter.
- It's finished primary integration of its solution platform with the operator's systems.
Sep. 30, 2015, 4:26 PM
- Elephant Talk (ETAK -6.7%) has retained Dawson James Securities to advise it on its strategic options for its ValidSoft UK subsidiary.
- The group will work with the board's Special Committee to look at options and conduct due diligence. "Although no assurances can be given that a transaction will be completed, the Board believes that it is prudent to now retain a qualified adviser to assist it in evaluating the merits of the various options available to Elephant Talk as we seek to maximize shareholder value," said committee chairman Carl Stevens.
- The company had said it was looking at a sale, JV or merger for the unit with it in a strong strategic position, and believing that Elephant Talk's share price didn't reflect the intrinsic value of the company.
- Previously: Elephant Talk -7.9%, exploring alternatives for ValidSoft unit (Aug. 19 2015)
Sep. 28, 2015, 9:54 AM
- Elephant Talk Communications (NYSEMKT:ETAK) is up 4.3% after news that it's splitting its CEO/chairman roles and seeking a new chief executive.
- Steven van der Velden will stay on as chairman of the board, and relinquish the CEO role once the company has a qualified replacement. Three independent directors will form the search committee.
- The board also appointed Roderick de Greef to rejoin the board as director and to chair the Audit Committee. De Greef held those roles from 2008-2011.
Jul. 22, 2015, 10:28 AM
- Elephant Talk Communications (NYSEMKT:ETAK) is 3.1% lower as it says it's wrapped an initial restructuring, including staff reduction, to save $5M from its annual operating budget.
- The company says it needed to refocus its business following the loss of a large Mexican customer following its acquisition this year. Elephant Talk agreed to a $13.5M settlement from Iusacell last month to sever its business after Iusacell's takeover by AT&T.
- Elephant Talk will focus on supporting growing Mobile Network Operator and MVNO businesses worldwide. It's dividing into two units: Delivery & Operations (led by one co-president, Armin Hessler), and Sales & Innovation (led by co-president Martin Zuurbier).
Jun. 16, 2015, 9:02 AM
- Elephant Talk Communications (NYSEMKT:ETAK) is up 11.8% premarket after signing a settlement of about $13.5M (in Elephant Talk's favor) to end their mobile network enablement relationship.
- The deal lets Iusacell -- now a part of AT&T -- get infrastructure suppliers aligned with its new parent, and doesn't preclude future business between the two.
- The settlement consists of $12.6M in cash and the rest in exchange of obligations. It "provides us with significant means to carry out our business plans by providing an important cash settlement and allowing us to remain the owner of the platforms in Mexico," says Elephant Talk CEO Steven van der Velden.
May 28, 2015, 10:16 AM
- Elephant Talk Communications (NYSEMKT:ETAK) is up 8.1% after news of a contract with new Netherlands MVNO (mobile virtual network operator) Open Mobile, the fifth Dutch MVNO that it's enabling.
- Open Mobile will rely on Elephant Talk's software defined network to automate provisioning and orchestration.
- The contract is already generating revenue for Elephant Talk, CEO Steven van der Velden says.
May 12, 2015, 9:47 AM
- Amid a multi-quarter restatement due to errors in revenue recognition, Elephant Talk (NYSEMKT:ETAK) is slipping 6.7% as it posted in-line first-quarter earnings with revenue that beat expectations.
- "Although the restatement has had an impact on our year-over-year results, it is important to note that these adjustments do not change the amount of revenue and cash generated, only the timing of its recognition," says CEO Steven van der Velden.
- GAAP revenue of $5M was down from a restated $5.4M of a year ago; Non-GAAP revenue of $8M was up from $6.5M Y/Y. Net loss of $2.1M, vs. the restated loss of about $5.2M from Q1 2014.
- Adjusted EBITDA of $2.3M (up from prior $6K) beat an expected -$0.24M.
- Conference call at 11 a.m. ET.
- Previously: Elephant Talk craters on filing of non-reliance (Apr. 02 2015)
- Previously: Elephant Talk lower after revenue miss, restated results (Mar. 31 2015)
Apr. 2, 2015, 9:53 AM
- Elephant Talk Communications (NYSEMKT:ETAK) depositary shares have crumbled, -46.8%, as the company's filed an 8-K saying it can't rely upon a number of past statements, and detailing its restatement.
- Material errors in revenue recognition are leading the company to restate financials from the first three quarters of fiscal 2014, the first three quarters of 2013, and the year ended Dec. 31, 2013.
- Shares slipped Tuesday after the company missed expectations in Q4 revenues.
Mar. 31, 2015, 9:52 AM
- Elephant Talk (NYSEMKT:ETAK) is off 8.5% after its Q4 revenue missed expectations and it started restating past results to reflect a new business model.
- With the company finishing a transition away from its legacy landline business to mobile/security, it's restated past results, and recognizing revenue from the past couple of years over a longer time frame ("a number of years").
- The restatement means that Q4 revenue of $5.5M (-8.8% Y/Y) was up sequentially from $4.4M, and deferred revenue at year's end was $11.2M compared with the prior year's $2.6M.
- Net cash used in operations up to -$2.1M from prior year's -$6M.
- The company noted that its Iusacell contract isn't likely to continue due to Iusacell's new owner AT&T's preference for existing legacy vendors.
- Conference call at 11 a.m. ET.
Elephant Talk Communications Corp. provides business software and services to the telecommunications and financial services industry. It primarily provides mobile, fixed and convergent telecommunications software services. The company also offers mobile enabling platform as an on premise... More
Industry: Long Distance Carriers
Country: United States
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