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NORCROSS, Ga., Dec 09, 2008 (BUSINESS WIRE) --
EasyLink Services International Corporation ("EasyLink" or "Company") (NasdaqCM: ESIC) (www.easylink.com), a global provider of comprehensive messaging services and e-commerce solutions, reports its financial results for the first quarter fiscal 2009 ended October 31, 2008.
"This quarter was challenging with both of our business lines being impacted by economic conditions that no one could have predicted," says Thomas J. Stallings, EasyLink chief executive officer. "Although revenue was impacted by the rapidly fluctuating foreign currency exchange rates, our gross margin held steady at approximately seventy-one percent, reflecting the financial strength of our service lines. Moreover, we continued to benefit from our investment in sales and marketing, adding new customers throughout the quarter to counteract some of the downward pressures resulting from current economic conditions."
Mr. Stallings continued, "Our reoccurring revenue model, disciplined cost control practices and structure to optimize productivity enable the flexible execution required to manage the business during this global recession. These strengths combined with the value customers continue to place on our services worldwide have laid the foundation not only for weathering these tough times but emerging from them as a stronger company."
Highlights for the first quarter ended October 31, 2008 are as follows:
Total revenue for the first quarter was $22.8 million with a gross profit margin of 70.5%.
EasyLink provides adjusted EBITDA in this press release as additional information regarding its operating results. This measure is not in accordance with, or an alternative for, generally accepted accounting principles (GAAP), and may be different from non-GAAP EBITDA measures used by other companies. EasyLink believes that this presentation of adjusted EBITDA facilitates investors' understanding of its historical operating trends because it provides an important supplemental measurement in evaluating the operating results of our business. Please see a reconciliation of our GAAP loss to EBITDA at the end of this release. This release should also be read in conjunction with the Company's Form 8-K earnings release filed with the Securities and Exchange Commission for the quarter ended October 31, 2008.
Investor Conference Call - Thursday, December 11, 2008
The Company plans to hold a conference call on Thursday, December 11, 2008 at 10:00 a.m. EDT to discuss its first quarter fiscal year 2009 results in detail.
The Company invites all those interested in hearing management's discussion to join the call by dialing 888-727-7721 (U.S. and Canada) or 913-312-6678 (International).
A live replay of the call will also be available on the Company's website, www.easylink.com, for forty-five days.
About EasyLink Services International Corporation
EasyLink Services International Corporation (EasyLink) (NasdaqCM: ESIC), headquartered in Norcross, GA, is uniquely positioned to deliver a variety of messaging services that range from simple web-based fax delivery for small businesses to sophisticated fax hosting, tailored corporate e-mail messaging, EDI business-to-business exchanges and specialized telex protocol transmissions for marine and finance industries. With over two decades of servicing customers around the globe, EasyLink has established a proven track record for providing effective, reliable and secure communications. For more information on EasyLink, visit www.easylink.com.
Forward-Looking and Cautionary Statements
Except for the historical information and discussion contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated by such forward-looking statements. These and other risk factors are set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K, the Company's quarterly reports on Form 10-Q and the Company's other filings with the U.S. Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at www.sec.gov. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein as a result of new information, future events or otherwise.
