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COPYRIGHT 2006 Business Wire
SAN DIEGO -- Axesstel, Inc. (AMEX:AFT), a leader in the design and development of fixed wireless voice and broadband data products, today announced results for the fourth quarter and year ended December 31, 2005.
"We delivered on our key strategic goals for 2005--broadening our product offerings, expanding our geographic reach and customer base, and increasing revenues by 51 percent year-over-year," said Mike Kwon, chairman and chief executive officer of Axesstel. "While expanding our manufacturing capacity in China via our partner Wistron NeWeb, we reduced our overall manufacturing costs. Looking forward in 2006, we are focusing on continued sales growth in multiple geographic regions and have made some recent customer announcements in support of this goal."
Fourth Quarter 2005 Results
Revenues for the fourth quarter of 2005 were $11.8 million, compared to revenues of $28.2 million in the year ago period. Gross margin for the fourth quarter of 2005 was $705,000 or 6.0 percent of revenues, compared to $2.4 million, or 8.4 percent of revenues, for the same period last year, as sales volume declined and caused the under-utilization of the production facility. The company reported a net loss of $4.6 million, compared to a net loss of $3.2 million in the year ago quarter. Operating expenses in the fourth quarter 2005 included a total of $1.2 million for severance costs, bad debt reserves and increased license fees. Fourth quarter 2005 loss per share was $0.21 compared to a loss of $0.30 for the fourth quarter of 2004.
"Fourth quarter 2005 revenues were impacted by product introduction and acceptance testing at our largest customer," Kwon continued. "In early December, we began shipments of products to this customer. We also made initial shipments to a...
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