“We’re focused on cash flow and rightsizing our cost structure” Mr. O’Donnell said regarding the companies’ capital management looking forward. For the year ending December 31st, 2009, Arbinet saw cash flow improvements of ($732 thousand) vs. ($12.3 million), and the company advised continued increases in cash and cash equivalents as well as efficient cost management through 2010 and beyond.
1st quarter 2010 results and highlights:
- Revenues totaled $87.6 million vs. $82.5 million in the fourth quarter, a 6% quarter over quarter increase due to an additional 22.3 million completed calls.
- Gross profit totaled $4.8 million vs. $3.6 million in the fourth quarter, a 31% increase due to an accounting provision regarding how rent and expenses have been reclassified.
- Net loss totaled ($4.6 million) or ($.23) per diluted share vs. ($3.7 million) or ($.16) per diluted share in the fourth quarter, due to anticipated severance, relocation, and European currency charges the company recorded.
As Arbinet continues to roll out their new product lines in high growth markets, particularly in Central America, the company will be focusing on scalability, maintaining traffic growth, and partnerships through leveraging their market share.
Disclosure: "No Positions"