GRAND RAPIDS, Mich., July 11 /PRNewswire-FirstCall/ -- BestNet
Communications Corporation (OTC Bulletin Board: BESC), a provider of
proprietary global communication solutions, today announces its results for
the third quarter of fiscal 2003.
As stated in a previous press release, revenues for the quarter totaled
over $387,000 USD setting a new record and up 31% over the same period of
fiscal 2002. Gross margins more than doubled based on the same period
comparison and are continuing to improve. EBITDA, which represents virtually
all of the cash used in current operations on a monthly basis is down over 62%
based on fiscal 2003 and 2002 third quarter comparison.
Robert A. Blanchard, President and CEO of BestNet Communications
Corporation commented, "The third quarter of 2003 was one of continuous
improvement and growth for us. I am particularly pleased with our continuing
record setting revenue growth and strategic deployment of cash resources. The
fact that revenue is up 31% while cash used is down over 60% in comparable
periods indicates we are making good choices with our marketing and sales
initiates. This is further reinforced by the increase we have seen in both
corporate and active accounts this fiscal year to date. Thus far we have
added over 350 new corporate accounts along with 4,000 new individual
accounts. I encourage our investors to listen to our audio update which can
be found at http://www.bestnetcom.com/investor.htm and review our 3rd quarter
10-Q which will be filed next week for more detailed information on the
progress we are making."
BestNet also announces today that it will hold a meeting of its
shareholders on Wednesday September 17th, 2003 at a location and time to be
announced to provide a comprehensive update and conduct business important to
all shareholders. Details on the meeting will follow.
About BestNet Communications Corp:
BestNet Communications is a global communication solutions provider of
international long distance, conference calling and ClicktoPhone communication
services. BestNet's services are accessed via the internet and delivered
using standard phone lines. This results in a cost effective, high quality
service for both businesses and consumers.
Under the brand name Bestnetcall(TM) ( http://www.bestnetcall.com ) patented
services offer clients premium quality calls and conference calling worldwide,
at significantly lower rates. Calls and conference calls can also be launched
via a desktop application or handheld devices including Palm(TM), Pocket PC(R)
and Blackberry(TM) and used with any standard or wireless phone. In addition
the company's new ClicktoPhone(TM) service ( http://www.ClicktoPhone.com ) enables
clients to add secure and anonymous voice communication connectivity anywhere
in the world to web sites, web banners, pictures, electronic documents, and
customized e-mail calling buttons. BestNet's communication solutions are now
powered by our new GlobalPlex technology.
BESTNET COMMUNICATIONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MAY 31, 2003 AND 2002
2003 2002
(UNAUDITED) (UNAUDITED)
Revenues: $387,769 $296,641
Expenses:
Cost of revenues (exclusive of
depreciation and amortization
shown separately below) 346,181 279,778
General and administrative expenses 371,855 546,660
Depreciation and amortization 556,562 572,278
Total expenses 1,274,598 1,398,716
Loss from operations (886,829) (1,102,075)
Other income (expense):
Interest income 1,876 890
Interest and finance charges (308,724) (205,296)
Preferred stock conversion penalty -- (3,749)
Foreign asset tax expense -- (50)
Loss on sale of assets -- (257)
Other (expense) income (2,073) 600
Total other expense (308,921) (207,862)
Loss from continuing operations (1,195,750) (1,309,937)
Discontinued Operations
Operating income from discontinued
operations -- 323
Loss on sale of discontinued
operations -- (332)
Loss from discontinued operations -- (9)
Loss from operations (1,195,750) (1,309,946)
Preferred stock dividends 265,006 1,540
Loss available to common shareholders $(1,460,756) $(1,311,486)
Loss per common share, basic and
diluted
Continuing operations $(.06) $(.08)
Discontinued operations -- (.00)
$(.06) $(.08)
Weighted average number of shares
outstanding, basic and diluted 26,103,580 16,289,189
See accompanying notes to condensed consolidated financial statements.
BESTNET COMMUNICATIONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
MAY 31, AUGUST 31,
2003 2002
ASSETS (UNAUDITED)
Current Assets:
Cash and cash equivalents $607,424 $351,784
Certificate of deposit -- 22,773
Accounts receivable, less allowance of
$387 and $7,826 63,875 72,844
Prepaid expenses and other current
assets 53,213 71,801
Total current assets 724,512 519,202
Property and equipment, net of
accumulated depreciation of $2,969,931
and $2,335,732 1,081,041 1,625,348
License fee, net of accumulated
amortization of $4,966,841, and
$3,930,258 4,707,927 5,744,510
Note receivable from Softalk 1,569,608 1,508,043
Deposits and other assets 100,237 103,297
Total assets $8,183,325 9,500,400
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current Liabilities:
Accounts payable and accrued expenses $821,152 $700,270
Notes payable, net of discount of
$209,097 and $96,875 455,903 203,125
Deferred interest income 190,888 129,323
Deferred revenue 12,627 13,407
Total current liabilities 1,480,570 1,046,125
Long-Term Liabilities:
Capital Lease 14,343 --
Total long-term liabilities 14,343 --
Total liabilities 1,494,913 1,046,125
Series A Preferred Stock and Warrants 420,216 --
STOCKHOLDERS EQUITY
Common stock, par value $.001 per
share; 50,000,000 shares authorized;
29,948,104 and 16,530,005 shares
issued and outstanding 29,948 16,530
Additional paid-in capital 33,860,988 31,041,961
Accumulated deficit (27,622,740) (23,488,980)
Common stock subscribed, underlying
common shares of 0 and 1,866,842 -- 884,764
Total stockholders' equity 6,268,196 8,454,275
Total liabilities and
stockholders' equity $8,183,325 $9,500,400
See accompanying notes to condensed consolidated financial statements.
For further information please contact BestNet, +1-616-977-9933,
investors@bestnetcom.com .
This release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the "safe harbor" created thereby. These statements
include the plans and objectives of management for future operations. The
forward-looking statements herein are based on current expectations that
involve judgments with respect to, among other things, future economic,
competitive and market conditions and future business decisions, all of which
are difficult or impossible to predict accurately and many of which are beyond
control of the company. Although the company believes that the assumptions
underlying the forward-looking statements are reasonable, any one of the
assumptions could be inaccurate and, therefore, can be no assurance that the
forward-looking statements included in this release will prove to be accurate.
SOURCE BestNet Communications Corporation
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Related links:
http://www.ClicktoPhone.com
CONTACT:
BestNet, +1-616-977-9933,
investors@bestnetcom.com
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