Farmstead Telephone Group, Inc. Reports Year-End 2005 Results
04 April 2006 - 11:00PM
PR Newswire (US)
FY 2005 Revenues up 23% Over the Same Period Last Year EAST
HARTFORD, Conn., April 4 /PRNewswire-FirstCall/ -- Farmstead
Telephone Group, Inc. (OTC:FTGP) (BULLETIN BOARD: FTGP) announced
operating results for the year ended December 31, 2005. For the
year ended December 31, 2005 revenues were $15,203,000, 23% higher
than revenues of $12,344,000 reported for 2004. The Company
reported a net loss for the year of $3,314,000, or $(0.95) per
share, compared with a net loss of $1,424,000, or $(0.43) per
share, in 2004. The net loss for 2005 includes a $1,091,000 loss
attributable to the start up of One IP Voice, Inc., the Company's
wholly-owned subsidiary which was formed in 2005 to offer
carrier-based hosted IP telephony products and services. The
Company attributed its fiscal year 2005 improved revenue results to
increased market penetration for its legacy business
systems-related products and services, particularly from the
small-to-medium business ("SMB") market segment which the Company
has been targeting, significantly higher sales of Avaya maintenance
contracts, and a larger sales force. During 2006, the Company has
raised approximately $3 million through various offerings of
convertible debt and convertible preferred stock to private
investors. These funds will be primarily used to further the
development and national deployment of OIPV's products and
services. Jean-Marc Stiegemeier, Farmstead's Chairman, President
and CEO commented, "2005 represented a period of transition as
Farmstead re-aligned its core business and created a new business
direction through the formation of One IP Voice. "During 2005,
Farmstead's core business revenues increased 23% over 2004 and
revenues continue to increase. We expect to announce for our first
quarter ended March 31, 2006 quarter over quarter 2005 growth of
approximately 80%. This revenue growth illustrates our growing
market share nationally, and validates the investment we made in
2005 to reverse the downward revenue trend we had been
experiencing. To facilitate this revenue growth and the launch of
One IP Voice, we have doubled our employee base from December 2004.
"In September of 2005 One IP Voice completed the installation of
its carrier-based VoIP platform. During the fourth quarter of 2005
we turned up Tier 1 cities nationally, and in January of 2006 we
launched our One IP Voice Hosted offerings nationally. Since our
launch ninety days ago, we have signed distribution agreements with
43 independent business partners who are now offering One IP Voice
products and solutions in Tier 1 and Tier 2 markets nationally. In
addition, we also recently entered into a Master Marketing and
Distribution Agreement with Iwatsu Voice Networks of America whose
North American distribution channel consists of 250 independent
business partners selling its products in 450 cities nationwide.
Under the terms of the agreement, Iwatsu Voice Networks now offers
One IP Voice products and services to their nationwide distribution
channel. One IP Voice has quickly deployed one of the largest
distribution channels for Hosted VoIP solutions to the small to
medium business segment (SMB) in the United States, and as a result
we expect to attain a significant hosted VoIP market share in 2006.
The One IP Voice 'go to market' strategy has been validated as
evidenced by our nationwide distribution footprint, our growing
backlog of orders and our installed customers who are now enjoying
the benefits of the One IP Voice platform. "In closing, 2005 was a
year of change (Shaping the Future) and we expect that 2006 will be
a year that our employees and shareholders continue to realize the
value of our efforts." The Company also announced that on April 3,
2006, it filed Form 12b-25 with the Securities and Exchange
Commission requesting an extension to file its Annual Report on
Form 10-K for the year ended December 31, 2005. The filing delay
was attributable to additional time needed by the Company to
complete the valuation, accounting and audit of certain derivative
financial instruments arising from the issuance during 2005 of
convertible notes pursuant to its current credit facility with the
Laurus Master Fund Ltd. About One IP Voice One IP Voice, a wholly
owned subsidiary of Farmstead Telephone Group, provides
carrier-based Hosted IP Telephony solutions along with Network
Services. The primary target of the One IP Voice offering is to the
Small to Medium Businesses (SMB) market for the under 200-employee
businesses. The facilities-based One IP Voice offering includes
Hosted IP Centrex and IP Trunking services, bundled with private
One IP Voice "Last Mile" connectivity on a national basis, long
distance calling, On Net calling, local area calling, 911
capabilities and Wide Area Network (WAN) voice and data
connectivity. Further information about One IP Voice may be found
at http://www.oneipvoice.com/ About Farmstead Farmstead Telephone
Group, Inc. is a Platinum level member of Avaya's BusinessPartner
program, selling, installing and maintaining both new and
refurbished Avaya business communications products nationwide.
Further information about Farmstead Telephone may be found at
http://www.farmstead.com/. To add yourself to our email
distribution list, click here:
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This release contains forward-looking statements that involve risks
and uncertainties. In addition to historical information, investors
should consider carefully the risks associated with an investment
in the Company's securities as previously outlined by the Company
in its prior filings with the Securities and Exchange Commission.
Investor Contact: Sanford Diday or Dave Gentry Aurelius Consulting
Group 407-644-4256 http://www.runonideas.com/ Company Contact:
Robert G. LaVigne, CFO Farmstead Telephone Group, Inc. Voice:
860-610-6002 Fax: 860-610-6001 DATASOURCE: Farmstead Telephone
Group, Inc. CONTACT: Sanford Diday or Dave Gentry, +1-407-644-4256,
, both of Aurelius Consulting Group; or Robert G. LaVigne, CFO of
Farmstead Telephone Group, Inc., +1-860-610-6002 Web site:
http://www.farmstead.com/
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