GTT Communications (GTTNQ) 8-K Global Telecom & Technology Reports Fourth Quarter and Full Year 2009 Results

Exhibit 99.1

Global Telecom & Technology Reports Fourth Quarter and Full Year 2009 Results

Generates Revenue of $64.2 Million and Doubles Adjusted EBITDA to $4.2 Million for the Year

Completes Acquisition of WBS Connect

MCLEAN, Va.--(BUSINESS WIRE)--March 23, 2010--Global Telecom & Technology, Inc. (“GTT”), (OTCBB:GTLT), a leading global network integrator that provides its clients with a broad portfolio of wide-area network, dedicated Internet access and managed data services, announced today results for the fourth quarter and year ended December 31, 2009. Highlights include:

• Revenue totaled $64.2 million as compared to $67.0 million for 2008. Revenue was negatively impacted by the substantial weakening of the Euro and British Pound Sterling to the U.S. Dollar since 2008. Adjusted for currency effects, revenue increased approximately 2% over 2008.
• Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”)* doubled quarter-over-quarter and year-over-year. Fourth quarter 2009 increased to $1.2 million compared to $0.6 million in the fourth quarter of 2008. Full year 2009 increased to $4.2 million compared to $2.0 million in 2008.
• Acquisition of WBS Connect LLC completed on December 16, 2009, resulted in the addition of over 400 customers and a broader dedicated Internet access and Ethernet product suite.
• Net income of $0.5 million, or $0.03 per share for the full year 2009.

* See “Annex A: Non-GAAP Financial Information—Adjusted EBITDA” for more information regarding the computation of Adjusted EBITDA.

“With $16.4 million in revenue and $1.2 million in Adjusted EBITDA, the fourth quarter was a solid finish to what was a strong year for GTT,” stated Richard D. Calder, Jr., president and chief executive officer. “We have continued to generate improving financial results, with our Adjusted EBITDA continuing on a steady sequential incline and doubling the amount we reported for both the fourth quarter and full year in 2008.

“With our acquisition of WBS Connect completed in the fourth quarter, we have achieved a significant milestone in our strategy to scale our business and create operational leverage. The addition of WBS’s network assets also expanded our capability to offer a broader suite of dedicated Internet access and Ethernet services, providing the opportunity to attract new customers and cross-sell into our existing customer base. We have made excellent progress integrating WBS since closing the transaction, and are pleased to see strong contributions to our new sales, including recently announced dedicated Internet access deals with Telx and other large Ethernet transport installations.”

“During the past two years, GTT has produced growing Adjusted EBITDA results,” said Eric Swank, chief financial officer. “This continuous improvement in our cost controls and operational efficiencies has provided us with the capital and credit that is funding our acquisitions. This improvement is enabled by GTT’s operational platform – an experienced global sales force, exceptional global customer and network operations teams, and a proprietary Client Management Database (CMD) integrated support system – which also positions us further to scale our business.

“To that end, our previously announced and pending acquisition of assets from Global Capacity has received FCC approval and continues to move toward closure upon receipt of final customer and vendor consents. We believe these assets are an excellent complement to our existing business and can further demonstrate the power of our operating platform in our drive to build a larger, more profitable company.”

Conference Call Information

GTT will hold a conference call on Wednesday, March 24, 2010 at 8:30 a.m. Eastern Time (5:30 a.m. PT) to discuss its results for the fourth quarter and full year 2009. To participate in the live conference call, interested parties may dial 1.888.378.4353 or +1.719.457.2677 and enter passcode 1311014. A simultaneous live webcast of the call will be available over the Internet at www.gt-t.net, under the Investor Relations section of the site. A replay of the call will be available for one month. Interested parties can access the call replay by dialing 1.888.203.1112 or +1.719.457.0820 and using the passcode 1311014. In addition, a replay of the webcast will be available on GTT’s website at www.gt-t.net.

About GTT

GTT is a global network integrator providing a broad portfolio of Wide-Area Network (WAN), Dedicated Internet Access and Managed Data Services. With over 800 supplier relationships worldwide, GTT combines multiple networks and technologies such as traditional OC-x, MPLS and Ethernet, to deliver cost-effective solutions specifically designed for each client's unique requirements. GTT enhances its client performance through its proprietary Client Management Database (CMD), providing customers with an integrated support system for all of their services. GTT is committed to providing comprehensive solutions, project management and 24x7 global operations support.

Headquartered in McLean, Virginia, GTT has offices in London, Dusseldorf, and Denver and provides services to more than 700 enterprise, government, and carrier clients in over 80 countries, worldwide. For more information visit the GTT website at www.gt-t.net.

Forward-Looking Statements

This release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect the current views of Global Telecom & Technology, Inc., with respect to current events and financial performance. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “could,” “should,” and “continue” or similar words. These forward-looking statements may also use different phrases. From time to time, Global Telecom & Technology, Inc., which we refer to as “we”, “us” or “our” and in some cases, “GTT” or the “Company”, also provides forward-looking statements in other materials GTT releases to the public or files with the United States Securities & Exchange Commission (“SEC”), as well as oral forward-looking statements. You should consult any further disclosures on related subjects in our quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Such forward-looking statements are and will be subject to many risks, uncertainties and factors relating to our operations and the business environment that may cause our actual results to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause GTT’s actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to obtain capital; our ability to develop and market new products and services that meet customer demands and generate acceptable margins; our reliance on several large customers; our ability to negotiate and enter into acceptable contract terms with our suppliers; our ability to attract and retain qualified management and other personnel; competition in the industry in which we do business; failure of the third-party communications networks on which we depend; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which we are engaged; our ability to maintain our databases, management systems and other intellectual property; our ability to maintain adequate liquidity and produce sufficient cash flow to fund our capital expenditures and debt service; technological developments and changes in the industry; our ability to complete acquisitions or divestures and to integrate any business or operation acquired; our ability to overcome significant operating losses; and general economic conditions. Additional information concerning these and other important factors can be found under the heading "Risk Factors" in GTT's annual and quarterly reports filed with the Securities and Exchange Commission including, but not limited to, its Annual Report on Form 10-K. Statements in this release should be evaluated in light of these important factors.

Global Telecom & Technology, Inc.
Consolidated Balance Sheets
(Amounts in thousands, except for share and per share data)
	December 31, 2009			December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	5,548		$	5,785
Accounts receivable, net		9,389			8,687
Deferred contract costs		454			1,226
Prepaid expenses and other current assets		937			853
Total current assets		16,328			16,551
Property and equipment, net		2,235			1,303
Intangible assets, net		7,613			4,051
Other assets		429			692
Goodwill		29,156			22,000
Total assets	$	55,761		$	44,597
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	12,204		$	13,284
Accrued expenses and other current liabilities		11,372			5,300
Short-term debt		12,463			-
Deferred revenue		6,112			3,961
Total current liabilities		42,151			22,545
Long-term debt		244			8,796
Deferred revenue and other long-term liabilities		352			1,126
Total liabilities		42,747			32,467
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $.0001 per share, 80,000,000 shares authorized, 15,472,912, and 14,942,840 shares issued and outstanding as of December 31 ,2009 and 2008, respectively		2			1
Additional paid-in capital		58,710			57,584
Accumulated deficit		(45,499	)		(45,953	)
Accumulated other comprehensive income (loss)		(199	)		498
Total stockholders’ equity		13,014			12,130
Total liabilities and stockholders' equity	$	55,761		$	44,597

Global Telecom & Technology, Inc.
Consolidated Statements of Operations
(Amounts in thousands, except for share and per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2009			2008			2009			2008
Revenue:
Telecommunications services sold	$	16,353		$	16,533		$	64,221		$	66,974
Operating expenses:
Cost of telecommunications services provided		11,499			11,997			45,868			47,568
Selling, general and administrative expense		3,743			3,974			14,684			18,197
Impairment of goodwill and intangibles		-			-			-			41,854
Restructuring costs, employee termination and non-recurring items		641			-			641			-
Depreciation and amortization		386			399			1,733			2,211
Total operating expenses		16,269			16,370			62,926			109,830
Operating income (loss)		84			163			1,295			(42,856	)
Other income (expense):
Interest income (expense), net		(198	)		(179	)		(849	)		(781	)
Other income (expense), net		(65	)		(29	)		24			(28	)
Total other expense, net		(263	)		(208	)		(825	)		(809	)
Income (loss) before income taxes		(179	)		(45	)		470			(43,665	)
Provision for (benefit from) income taxes		35			(403	)		16			(1,291	)
Net income (loss)	$	(214	)	$	358		$	454		$	(42,374	)
Net income (loss) per share:
Basic	$	(0.01	)	$	0.02		$	0.03		$	(2.85	)
Diluted	$	(0.01	)	$	0.02		$	0.03		$	(2.85	)
Weighted average shares:
Basic		15,366,894			14,956,856			15,268,826			14,863,658
Diluted		15,366,894			14,956,856			15,470,763			14,863,658

ANNEX A: Non-GAAP Financial Information

Adjusted EBITDA

Adjusted EBITDA represents operating income before depreciation and amortization on a non-GAAP (accounting principles generally accepted in the United States of America) combined basis for the periods presented, and adjusted to exclude certain one-time expenses including costs associated with employee terminations and other non-recurring items and non-cash compensation. GTT presents Adjusted EBITDA as a supplemental measure of GTT’s performance. GTT also presents Adjusted EBITDA because GTT believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry and in measuring the ability of issuers to meet debt service obligations.

In evaluating Adjusted EBITDA, you should be aware that in the future GTT may incur expenses similar to the adjustments in this presentation. GTT’s presentation of Adjusted EBITDA should not be construed as an inference that GTT’s future results will be unaffected by unusual or non-recurring items. Adjusted EBITDA is not a measurement of GTT’s financial performance under GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.

The following is a reconciliation of Adjusted EBITDA to operating income (loss) (in thousands):

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2009		2008		2009		2008
Operating income (loss)	$	83	$	163	$	1,295	$	(42,856	)
Depreciation and amortization		386		399		1,733		2,211
Impairment of goodwill and intangible assets		-		-		-		41,854
Restructuring costs, employee termination and non-recurring items		641		-		641		-
Non-cash compensation		130		71		550		813
Adjusted EBITDA	$	1,240	$	633	$	4,219	$	2,022

CONTACT:
GTT Investor Contacts:
Eric Swank, +1 703-442-5529
eric.swank@gt-t.net
or
Lippert/Heilshorn & Associates
Kim Sutton Golodetz
kgolodetz@lhai.com
or
Jody Burfening, +1 212-838-3777
jburfening@lhai.com