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CommerceTel Corp. (MFON) Reports Record Financial Results; Revenues Skyrocket 620%

|Includes: Mobivity Holdings Corp (MFON)

CommerceTel, an award-winning provider of proprietary mobile marketing technologies, today reported record revenue, gross profit, and reduced operating losses for Q1 2012.

Revenues for the three month period totaled $1,013,206, 620.4% greater than what was reported for the same quarter a year earlier. Gross margin profit was reported at $645,437 for the quarter, up 962% from the same period a year ago. Gross margins for the first quarter increased to 63.7% from 43.2% in 2011.

The increase in gross profit as a percentage of revenue was attributed to the three acquired operating segments which generated higher gross margins and allowed for greater leverage of fixed expenses. Increased volume of SMS traffic also allowed for a reduction of more than 50% in per-message costs beginning in January 2012. Management expects these costs to continue to decline significantly in 2012 as pricing synergies are obtained by consolidating the operations of the acquired companies.

Operating expenses for the first quarter of 2012 were $1,579,663, consisting of approximately $312,873 in selling expenses and approximately $951,986 million in general and administrative expenses. Operating expenses include $250,532 in share-based compensation. Operating loss was $934,226 in the three months ended March 31, 2012, compared to an operating loss of $775,866 in the corresponding period a year ago.

As of March 31, 2012, the company had $240 in cash compared to $396 at year-end December 31, 2011. Total accounts receivable increased from $243,846 in 2011 to $227,259 in 2012. Total notes payable outstanding were $2,116,212 at March 31, 2012 compared to $1,825,714 at December 31, 2011.

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