Statmon Technologies Corp. (OTC:STCA), which is a wireless and fiber infrastructure network management solution provider, recently filed its Form 10-Q with the SEC for the quarter ended June 30, 2010.
For the quarter ended June 30, 2010 the Company reported revenue of $1,164,276, an increase of 119% over the revenue of $530,692 for the same quarter in the prior year, and operating income of $173,228, compared to an operating loss of $573,138 in the same quarter in the prior year. Gross profit was 94% of revenue for the quarter ended June 30, 2010. Net income for the quarter was $1,188,829 compared to a net loss of $3,566,956 in the same period last year. The significant increase in other income during the quarter to $1,015,601 compared to other expense of $2,993,818 for the quarter ending June 30, 2009 was primarily due to a gain on the change in the fair value of warrants and convertible features of $1,624,000. During the quarter ended June 30, 2009, we also had a gain due to the change in fair value of warrants and conversion features of $4,260,000, however we recorded an expense of $5,936,000 to recognize the immediate increase in the fair value of outstanding warrants and conversion features when the exercise and conversion prices were reset due to ratchet provisions included in our outstanding debentures and warrants.
Mr. Geoffrey Talbot, Statmon's Chairman & Chief Executive Officer, commented, "The quarter ended June 30, 2010 was indeed encouraging. This is Statmon's sixth straight quarter of revenue growth since the unexpected market meltdown in the quarter ending December 31, 2008 and all of 2009. Statmon's work in progress and new infrastructure projects that had been delayed or postponed since October 2008, all of 2009 and in early 2010 have started to trickle back to us. Statmon's domestic and international sales pipelines continue firm up with projects. In fact, the quarter ended June 30, 2010 was our strongest quarter since December 2006."
Mr. Talbot went to say that we are especially pleased that a subsidiary of News Corporation (NASDAQ: NWS, NWSA; ASX, NWSLV) has recently joined the exclusive Statmon user group, otherwise known as "CLUB STATMON". Other Statmon users include: Qualcomm (Nasdaq: "QCOM") FLO TV for mobile TV transmission to AT&T (NYSE: "T") and Verizon Communications Inc.(NYSE: "VZ") mobile phone subscribers, Time Warner/Turner Broadcasting& CNN (NYSE: "TWX"), the State of Maryland, NBC-Universal(NYSE: "GE") Public Broadcast ("PBS"), CBS Corporation (NYSE: "CBS"),Walt Disney-ABC (NYSE: "DIS"), Univision Broadcast, Cox TV 8 Radio (NYSE: Cox Radio (NYSE CXR)),Belo Corporation (NYSE: "BELC"),Harris (NYSE: "HRS"), the Australian Government "Air services of Australia", the United States Governments "NSA", Sinclair Broadcast Group (NasdaqGS: "SBGI"), LIN TV Corp (NYSE, "TVL"),Westwood One Radio (NASDAQ: WWON), Tribune Broadcast, Empire State Building - New York City, Durst Organization, No. 4 Times Square, New York, MGM Resorts (NYSE:"MGM"), the New York City DOT in Long Island City, InfraCell & Cascadiant in SE Asia , National TeleConsultants , CTC, Clear Channel ("NYSE:CCO") ARN - Australian Radio Network,and many others.Statmon users deploy Axess and other Statmon products to improve work flow and operating efficiencies, management and control of remote cellular and wireless transmission sites, network operation centers, digital encoder arrays, building management, EAS emergency alert systems, mobile telephone switches and other facilities.
About Statmon Technologies Corp.
Statmon Technologies Corp. is a wireless and fiber infrastructure network management solution provider. Axess, its proprietary software application, and its supporting integration products are deployed in telecommunications, media broadcast and navigation aid transmission networks to optimize operations and ensure that the entire network continues to function. The Statmon Platform is designed to self-heal, or preempt transmission failure by automating the integration of the different devices and disparate technologies in a network under a single umbrella control system and permit manual corrective action at the network operations center or from any connected computer, including a wireless device.
The Company is headquartered in Bannockburn, IL, a Chicago suburb, and its shares are quoted on the OTCQB board under the symbol "STCA."
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based largely on expectations or forecasts of future events, can be affected by inaccurate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the Company's control. Therefore, actual results could be differ materially from the forward-looking statements contained in this press release. A wide variety of factors could cause or contribute to such differences and could adversely impact revenues, margins, profitability, cash flows and capital needs. Such factors include, but are not limited to, its ability to increase revenues and achieve profits and positive cash flow in fiscal 2011; its ability to maintain or expand distribution within existing and new channels of trade for its products; its dependence on FloTV for a substantial portion of its revenues; its ability to complete the placement of its offering of Tranch III Secured Convertible Debentures; its need for additional capital and the uncertainty of obtaining it; the market acceptance for one or more of its new or existing products; whether it will be able to adapt its technology to new and different uses, including being able to introduce new products; competition from larger, more established companies with far greater economic and human resources; its ability to track and retain costumers and quality employees; the effect of changes economic conditions; and changes in government regulations, tax rates and similar matters; its ability to refinance or renegotiate promissory notes that have come due or are coming due; the wide fluctuations in its quarterly operating results; its failure to successfully implement new market verticals; and its ability to keep pace with rapidly changing technologies. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes," "expects," "anticipates," "intends," "estimates," "plans," "projects," "should" or other expressions that are predictions of or indicate future events or trends to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as result of new information, future events or otherwise. For a more detailed description of these and other cautionary factors that may affect the Company's future results, please refer to its Report on Form 10-K for its fiscal year ended March 31, 2010 filed with the Securities and Exchange Commission.
Contacts:
Statmon Technologies Corp.
Geoffrey Talbot, 310-770-4802
gtalbot@statmon.com