Gaithersburg, MD, Feb. 10, 2022 (GLOBE NEWSWIRE) — mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”), a technology company developing the mPower EV+ (electric vehicle) charging network and consumer engagement platform, today reported its financial results for its fiscal 2022 second quarter, ending December 31, 2021. Q2 marked the Company’s 11th straight quarter of year-over-year revenue growth.
Fiscal 2022 Second Quarter Financial Highlights:
|●||Revenue increased by 9.2% to a record $8.3 million compared to $7.6 million in the prior year quarter;|
|●||Gross profit margin increased 630 basis points to 32.6%, compared to 26.3% in the same year-ago quarter;|
|●||Operating income of $1.2 million showed a 10% year-over-year decrease, resulting in an operating margin of 14.2%;|
|●||The Company posted a small net loss of ($99,558) compared to $1.0 million in net income in the prior year quarter, due to large non-cash debt related items being amortized over the term of the related debt instrument totaling $1.0 million and increased Software Development costs of $314,664;|
|●||Stockholders’ Equity set a new record of $12.9 million, a 61% increase over the $8.0 million figure in the year ago quarter.|
|●||Prepaid $1.0 million of convertible debt and announced plans to pay off the remaining $1.3 million by the note’s due date;|
|●||Appointed financial industry professional James Engler, Jr. to its independent board and completed committee assignments required to qualify for uplist status;|
|●||Named energy industry veteran Isida Tushe as General Counsel and Corporate Secretary, and automotive industry expert Soni Arunima Thakur as Head of Sales;|
|●||Began the process in New York for the first EV charging locations, with a goal to complete installations in the next quarter.|
“This quarter marked the acceleration point where we ramped up our effort to move from the design phase to the roll-out phase for our mPower EV charging platform,” explained CEO Anshu Bhatnagar. “It is important to remember that we are building our revenue streams from scratch, so there is quite a bit of software, infrastructure development, and (now) equipment purchases behind that process. If you back out some large one-time charges this quarter, you will see that we are able to successfully maintain a robust R&D program funded primarily by our current cash flow. We will obviously need additional funds when we scale up our installation schedule, but we are really pleased at our prudent approach to entering a business segment that has typically been characterized by large loss-producing business models. Our model is fundamentally different than any other company in our space because it seeks to monetize more points of contact between retailers and consumers, which will enhance and maintain our competitive position. When we get our sets of mPower charging stations in the ground in the next quarter, we will be the first EV charging company to offer a true EV+ charging ecosystem – one that includes proprietary engagement and travel software representing years of development. We see continued momentum in the business and as we move into fiscal year 2022, we are focused on growth, scale, innovation and execution.”
Conference Call Information
mPhase management will host a conference call and live webcast on Thursday, February 10, 2022 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the company’s financial results.
To access the live call, dial 877-451-6152 (local) or 201-389-0879 (international).
A live webcast of the conference call can be accessed by clicking on the following link: Fiscal Second Quarter 2022 Webcast Link
The live and archived webcast of the conference call will also be accessible on the Investor Relations section of the company’s website at ir.mphasetech.com. The phone replay will be available approximately two hours following the end of the call, and will remain available for two weeks. To access the call replay dial-in information, please dial: 844-512-2921, passcode: 13727001.
The webcast will be archived on https://ir.mphasetech.com.
About mPhase Technologies
mPhase is an emerging EV-centric technology company focused on consumer engagement using data analytics and artificial intelligence to create a monetizable link between consumers and retailers at opportunistic times and places. The Company is currently building a connected ecosystem of EV+ (electric vehicle) charging network and software solutions that optimize consumer engagement within the framework of a SaaS/TaaS model, supplemented by an ESG-compliant Marketplace that incentives eco-friendly actions. Branded under the mPower name, this ecosystem will empower the way people shop, dine, fuel and interact with the world to create a richer life experience. The mPower ecosystem is tailored to each individual’s tastes and needs, with particular emphasis on empowering tomorrow’s green consumer. mPhase also has data driven business units generating recurring revenue outside of its consumer ecosystem, in addition to legacy nanobattery technology and a related patent portfolio that are slated for future development. Additional information can be found at the mPhase website, www.mphasetech.com; and at www.mpower.co. Please follow us on twitter: @mPhase_Tech for the latest updates.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.