Elephant Talk Communications Corp (NYSEMKT:ETAK) Gains On Positive Outlook
Elephant Talk Communications Corp (NYSEMKT:ETAK) saw its market capitalization gain by close to 19 percent on 26th March, after the firm announced its 4Q and full year 2013 operation results in addition to change of personnel in its board of directors.
Fourth Quarter Highlights
The revenue of $6 million reported for the quarter, was up by $0.8 million, which translates into a 16 percent increase over 3Q13. The big jump in revenue was accomplished on a 64 percent increase in revenue from the firms ‘mobile security’ offerings. This resulted in 4Q margins coming in at 82 percent as against the 39 percent it had reported in 4Q12. For the full year, the firm reported revenue of $22.8 million which was well below the $29.2 million revenue it had reported in FY12.
This was offset by a big build up in momentum during 4Q13, in which the firm posted an increase in its earnings before income tax to reach $0.14 million. The firm also disclosed that the revenue stream from its mobile and security line of business is contributing a huge 98 percent of company revenue, there by managing to reduce the firm’s dependence on its previous bread and butter business of land line telephony.
Management Team Changes
Elephant Talk Communications Corp (NYSEMKT:ETAK) also reported that it had brought on board two new directors to augment its strategic planning in the financial and organizational structural domains. The two directors are Mr. Geoffrey Leland and Mr. Carl Stevens.
Commenting about the big turnaround in company fortunes, Elephant Talk Communications Corp (NYSEMKT:ETAK) Chairman of the Board, President and Chief Executive Officer Steven Paul Karel Maire van der Velden has been quoted to have said that, “Achieving positive Adjusted EBITDA for the fourth quarter of 2013 was a major accomplishment for the Company. We expect these trends to continue as we migrate additional SIM cards onto our platform from lusacell, Vodafone and Zain”.