Gaithersburg, MD , Feb. 22, 2021 (GLOBE NEWSWIRE) — mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”) reported financial results for its fiscal 2021 second quarter, which ended December 31, 2020. The second quarter of fiscal 2021 financial results represent a one-year milestone, achieving the Company’s fourth consecutive profitable quarter. In conjunction with this release, mPhase is also providing additional operational developments.
For fiscal Q2 2021, management is noting the following items of importance:
- Revenue increased to $7.6 million for the three months ended December 31, 2020, compared to $7.5 million for the three months ended December 31, 2019, an increase of approximately $75,000;
- Revenue remained consistent at $7.6 million, driven by the continued deployment of the Company’s artificial intelligence enabled technology platforms and services, which generated approximately $6.2 million of subscription revenue, $0.9 million of service and support revenue, and $0.5 million of application development and implementation revenue;
- Gross profit margin of 26.3% was 70 basis points higher than the 25.6% reported in fiscal Q2 2020;
- Operating income of $1.3 million achieved the Company’s fourth consecutive profitable quarter, compared to a loss of $6.1 million in fiscal Q2 2020;
- Net income of $1.0 million represented the Company’s fourth consecutive profitable quarter, compared to a net loss of $5.9 million in fiscal Q2 2020;
- Basic and diluted net income per common share of $0.01 showed significant improvement from basic and diluted net loss per share of ($0.48) in fiscal Q2 2020; and
- Stockholders’ equity established a new record at approximately $8.0 million, a 45% increase over the $5.5 million reported at prior fiscal year-end June 30, 2020.
Following the fiscal Q2 2021 reporting period, the Company is pleased to report the following noteworthy developments:
- As previously reported, mPhase experienced an increase in accounts receivable while closing out 2020, which reached $21.9 million, but began receiving payments toward the outstanding balances subsequent to quarter end;
- During the first seven weeks of 2021, the Company paid off seven convertible notes and replaced some convertible notes with new notes which mature during 2022; and
- mPhase expects to continue paying off or replacing convertible notes prior to their eligible conversion dates to prevent any dilution from conversions.
“We’ve spent the first part of 2021 positioning the Company for a number of projects across our business units,” explained mPhase CEO Anshu Bhatnagar. “We have been working to improve our cash flow and capital structure to promote organic growth in our core businesses. These businesses are exceptionally steady, but now we are ready to layer on growth. We have a great technology team in place, so we are working to capture new contracts that will add to our recurring revenue, while expanding our customer base and geographic reach. Although we have achieved recurring profitability, we have significant tax loss carryforwards that will shield us from income taxes for many years to come.”
Battery Technology Update
mPhase is experiencing considerable third-party interest in its battery technology, which has resulted in active discussions with entities targeting consumer, commercial, and government end markets. Potential partnerships under consideration are for transportation, specialty storage, and remote and critical-use applications. The Company is also in active discussions with entities in the medical space. Management cannot be certain of the outcome of these discussions, which involve multiple, separate companies and are confidential in nature. The status of these strategic initiatives will be discussed further during the Company’s upcoming financial results and corporate update conference call.
Financial Results and Corporate Update Conference Call
Management expects to hold a combined investor and operational update call that will provide additional insight to the Company’s strategic plan for 2021. The date and dial in information of this call will be provided in a subsequent corporate communication.
About mPhase Technologies
mPhase is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. The Company is assembling industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com; and at www.learningtrack.com. Please follow us on twitter: @mPhase_Tech for the latest updates.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.