Revenues Grew Almost Threefold in First Nine Months of Fiscal 2002
GRAND RAPIDS, Mich., July 11 /PRNewswire-FirstCall/ --
BestNet Communications Corp. (OTC Bulletin Board: BESC) a provider of patented
Internet based communications today reported record sales and continued high
growth in new enrollments for fiscal 3rd quarter ended May 31, 2002. Revenues
grew 191% to $296,641, compared to $101,874 during same period last year. For
the nine-month period, revenues grew 197% to $719,679 versus $242,267. Sales
grew 27% from the fiscal 2nd quarter of 2002. Enrollments increased 26%. The
Company attributed the strong growth to increased usage by corporate and
residential users as well as marketing initiatives implemented during the
quarter.
BestNet recorded a net loss of $1,290,150, or $.08 per share, in the
fiscal third quarter of 2002 compared with a net loss of $1,343,720, or
$.13 per share, during the same period last year. Continued investments in
marketing, sales channel development and product customization contributed to
the loss, although the company reduced expenses as a percentage of revenues
from the same period last year.
Robert Blanchard, President and CEO of BestNet stated "There were several
significant highlights during the quarter. We have seen strong demand and
continued growth based on available working capital. We have also begun
implementation of our intellectual property management plan, which we believe
will be a very successful strategy. We have enrolled over 800 new customers
from around the globe during the quarter. Our efforts to develop
international sales channels are progressing well as evidenced by our recent
addition of Dove International as a channel partner." Blanchard added, "We
are especially encouraged that our 3rd quarter was our first with positive
margin contribution, an important milestone keeping us on course to becoming
profitable."
About BestNet:
BestNet Communications Corp. is an Internet-based provider of long
distance, conference calling and e-commerce communication services. BestNet's
products blend key attributes of the Internet with traditional telecom
technologies, offering a fresh approach to consumer and business markets.
Under the brand name Bestnetcall ( http://www.bestnetcall.com ), the patented service
offers subscribers premium quality calls, at significantly lower rates. Calls
can be also launched via the desktop application or handheld devices including
Palm(TM), Pocket PC(R) and Blackberry(TM) and used with any standard or
wireless phone.
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,
including plans and objectives. 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.
For further information, please contact: Investor Relations, Ronald Both
of Liolios Group Inc, +1-949-574-3860, ron@liolios.com, for BestNet
Communications Corp.
FINANCIAL TABLES
BESTNET COMMUNICATIONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
May 31, August 31,
2002 2001
(unaudited) (note 1)
ASSETS
Current Assets:
Cash and cash equivalents $603,754 $285,518
Accounts receivable, less
allowance of $8,494 and $3,539 63,524 18,529
Certificate of deposit 22,384 21,282
Prepaid expenses and other assets 31,807 36,663
Total current assets 721,469 361,992
Property and equipment, net of
accumulated depreciation of
$2,125,413 and $1,630,755 1,846,881 2,355,909
License fee, net of accumulated
amortization of $3,584,732, and $2,548,153 6,090,036 7,126,615
Note receivable from Softalk 1,486,396 1,384,000
Note receivable from shareholder/director -- 10,160
Deposits and other assets 104,097 26,280
Total assets $10,248,879 $11,264,956
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $615,744 $153,736
Deferred revenue 12,093 10,460
Notes payable, net of discount of $645,393 262,439 --
Dividends payable 361 --
Total current liabilities 890,637 164,196
Stockholders' Equity:
Series B preferred stock, 6%
cumulative, par value $.001
per share; 10,000,000 shares
authorized, 0 and 532 shares
issued and outstanding as of
May 31, 2002 and August 31,2001,
respectively -- 5
Series C preferred stock, 8%
cumulative, par value $.001
per share; 10,000,000 shares
authorized, .26 and 0 shares
issued and outstanding as of
May 31, 2002 and August 31, 2001,
respectively -- --
Common stock, par value $.001
per share; 50,000,000 shares
Authorized; 16,530,005 and
11,772,313 shares issued and
outstanding 16,530 11,772
Additional paid-in capital 30,108,981 28,109,515
Accumulated deficit (20,767,269) (17,020,532)
Total stockholders' equity 9,358,242 11,100,760
Total liabilities and
stockholders' equity $10,248,879 $11,264,956
BESTNET COMMUNICATIONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
May 31
2002 2001
(unaudited) (unaudited)
Revenues $296,641 $101,874
Expenses:
Cost of sales (exclusive of
depreciation and amortization
shown separately below) 279,778 116,881
General and administrative 546,723 759,617
Depreciation and amortization 572,279 523,844
Total expenses 1,398,780 1,400,342
Net loss from operations (1,102,139) (1,298,468)
Other income (expense):
Interest income 22,226 11,585
Interest expense (205,296) --
Rental income -- 300
Income tax expense (50) (50)
Loss on sale of asset (257) --
Issuance cost (3,749) --
Miscellaneous income 6 6
Exchange gain 657 (9,165)
Total other income (expense) (186,463) 2,676
Net loss before preferred dividends (1,288,602) (1,295,792)
Discontinued Operations
Loss from discontinued operations (8) (103)
Cumulative preferred dividends declared
and conversion dividends 1,540 47,825
Net loss available to
common shareholders $(1,290,150) $(1,343,720)
Net loss per common share,
basic and diluted $(.08) $(.13)
Weighted average number of shares
outstanding, basic and diluted 16,289,189 10,330,393
SOURCE BestNet Communications Corp.
 back to top
Related links:
http://www.bestnetcall.com
CONTACT:
Investor Relations, Ronald Both of Liolios
Group Inc, +1-949-574-3860, ron@liolios.com, for BestNet
Communications Corp.
|
