Revenues Nearly Tripled for Fiscal Year 2002
GRAND RAPIDS, Mich., Nov. 22 /PRNewswire-FirstCall/ -- BestNet
Communications Corp. (OTC Bulletin Board: BESC), a provider of patented
Internet-based communications solutions, today announced results for the
fiscal year-ended August 31, 2002.
Revenue for the year nearly tripled to $1,060,582 compared to $360,615 for
the previous year. The growth in the use of the Company's network continues,
with the total number of completed calls increasing 433%, conference calls
increasing 568% and the total number of minutes increasing 278% compared to
the previous year.
Operating Loss increased to ($371,614) compared to ($21,683) for the
previous year. The increase includes $437,000 paid for network monitoring and
maintenance. Subsequently, the company has taken over network monitoring and
maintenance, which will result in a substantial cost reduction during fiscal
2003.
EBITDA loss slightly increased to ($2,400,346) compared to ($2,066,403)
for the previous year. The company reduced costs including: rent (from
consolidation of facilities), bad debt, and investor relations expenses.
Expenses increased for consulting and salaries.
BestNet reduced its operating loss per share, on a weighted average basis,
35%, to ($0.15) per share compared to ($0.23) per share for the previous year.
Robert A. Blanchard, president and CEO of the company said, "This past
fiscal year was challenging for most businesses in terms of a slumping global
economy and especially for the telecommunications industry. But despite many
of these factors, we were able to raise capital, grow the business and take
full control of our network operations. We now have a solid foundation for
growth and are on the path to profitability."
Blanchard added, "BestNet's global service was used by subscribers
originating calls from 142 countries, calling to 198 countries. Our
subscriber base grew by 153% over the previous fiscal year for a total of
about 13,000 accounts. Approximately 7,000 new accounts were enrolled this
year, compared to 4,500 new accounts for the previous fiscal year."
About BestNet
BestNet Communications 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
also be 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 investors, Ron Both of Liolios
Group Inc., +1-949-574-3860, ron@liolios.com, for BestNet Communications Corp.
BESTNET COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AUGUST 31, 2002
August 31,
ASSETS 2002
Current assets:
Cash and cash equivalents $351,784
Certificate of deposit 22,773
Accounts receivable, less allowance of $7,826 72,844
Prepaid expenses and other assets 71,801
Total current assets 519,202
Property and equipment, net of accumulated
depreciation of $2,335,732 1,625,348
License fee, net of amortization of $3,930,258 5,744,510
Note receivable from Softalk, an affiliate 1,508,043
Deposits and other assets 103,297
Total assets $9,500,400
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $700,270
Notes payable - net of discount of $96,875 203,125
Deferred interest income 129,323
Deferred revenue 13,407
Total current liabilities 1,046,125
Stockholders' equity:
Common stock, par value $.001 per share;
50,000,000 shares authorized,
16,530,005 shares issued and
outstanding 16,530
Additional paid-in capital 31,041,961
Accumulated deficit (23,488,980)
Common stock subscribed, underlying
common shares of 1,866,842 884,764
Total stockholders' equity 8,454,275
Total liabilities and stockholders' equity $9,500,400
BESTNET COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED AUGUST 31, 2002 AND 2001
2002 2001
Revenues $1,060,582 $360,615
Expenses:
Cost of revenues (exclusive of
depreciation and amortization
shown separately below) 1,432,196 382,298
Gross loss (371,614) (21,683)
General and administrative expenses 2,028,732 2,044,720
Depreciation and amortization 2,277,525 1,979,975
Total operating expenses 4,306,257 4,024,695
Net loss from operations (4,677,871) (4,046,378)
Other income (expense):
Interest income 3,023 227,691
Interest expense (764,688) (36)
Foreign asset tax expense (30,050) (50)
Preferred stock conversion penalty (35,944) --
Gain on sale of fixed assets 2,405 --
Other (800) (1,304)
Total other income (expense) (826,054) 226,301
Loss from continuing operations (5,503,925) (3,820,077)
Discontinued Operations:
Operating income (loss) from
discontinued operations (5,468) 17,280
Loss on sale of discontinued operations (332) --
Income (loss) from discontinued
operations (5,800) 17,280
Loss from operations (5,509,725) (3,802,797)
Preferred stock dividends (See Note 12) 958,723 212,013
Loss available to common shareholders $(6,468,448) $(4,014,810)
Earnings (loss) per common share
Continuing operations $(0.35) $(0.43)
Discontinued operations $(0.00) $0.00
Preferred stock dividends $(0.06) $(0.02)
Net loss attributable to common
shareholders $(0.41) $(0.45)
Weighted average number of shares
outstanding, basic and diluted 15,933,908 9,013,669
SOURCE BestNet Communications Corp.
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Related links:
http://www.bestnetcom.com
CONTACT:
investors, Ron Both of Liolios Group Inc.,
+1-949-574-3860, ron@liolios.com, for BestNet Communications
Corp.
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