Business
MPHASE REPORTS RECORD THIRD QUARTER REVENUE AND FIRST PROFITABLE QUARTER IN COMPANY HISTORY
MPHASE REPORTS RECORD THIRD QUARTER REVENUE AND FIRST PROFITABLE QUARTER IN COMPANY HISTORY.
About this update from Mphase Technologies, Inc.
[{"type":"text","content":"\n Gaithersburg, MD, May 20, 2020 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC: XDSL) (“mPhase” or the “Company”) today reported record financial results for its third fiscal 2020 quarter and nine-month period ended March 31, 2020. In conjunction with this release, the Company is also providing additional details on its business initiatives for the remainder of calendar year 2020. For Q3/2020, management is noting the following items of importance: Net income totaled $1.4 million, achieving the first profitable quarter in Company history;Earnings per share was a record $0.11 per common share, or $0.02 per common share on a fully diluted basis;Revenue set a Q3 company record of $7.6 million, compared to zero revenue reported in Q3/2019;Gross profit margin was 25.6%, on track with the trend for fiscal 2020;Software development costs declined significantly to approximately $17,000 from $0.9 million during Q2/2020 as the Company continues to build out its experienced internal team and reduce its use of consultant developers;Revenue mix consisted of 82% subscription, 11% service and support, and 7% application development and implementation; andShareholder equity increased to $2.6 million, an increase from $0.6 million at June 30, 2019 and a deficit of $1.8 million at March 31, 2019 “We are very proud to achieve the first profitable quarter in company history only one-year after taking over mPhase,” said CEO Anshu Bhatnagar. “We’ve guided to $30 million in annual revenue off of our critical testing business and are tracking to that forecast almost perfectly. We will be raising our guidance after we assess the timing of revenue from our acquisition of CloseComms Limited (“CloseComms”), which we announced just a few days ago. We are at the very beginning of the revenue cycle at CloseComms, so this will add a second stream of recurring revenue, which we believe will provide mPhase double digit sequential quarterly growth as deployments begin to increase. We also expect to generate growth in our core learning and testing business, so we are on the cusp of a new growth cycle at mPhase.” Key items of interest for calendar year 2020 include: Based on positive response in the sales channel, CloseComms expects to announce deployments, pilots and other engagements with maj...