Exhibit 99.1
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CONTACTS: | Metro One Telecommunications, Inc. |
| Duane Fromhart, Chief Financial Officer |
| (503) 643-9500 |
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| Financial Dynamics |
| Jim Byers (Investors & financial media) |
| (415) 439-4504 |
FOR IMMEDIATE RELEASE
METRO ONE REPORTS 2005 SECOND QUARTER FINANCIAL RESULTS
PORTLAND, Oregon – July 29, 2005 – Metro One Telecommunications, Inc. (Nasdaq: INFO), the leading provider of Enhanced Directory Assistance® and other enhanced telecom services, today reported financial results for the second quarter ended June 30, 2005.
Revenue for the second quarter of 2005 was $20.1 million, compared to $18.4 million in the first quarter, based on increased call volume. Revenue was $43.5 million in the preceding year’s second quarter, with the decrease in 2005 versus 2004 resulting from reductions in call volume reflecting the end of a contract with AT&T Wireless and a lower average price per call. Net loss for the second quarter was $9.2 million, or a loss of $0.37 per share, compared to a loss of $13.3 million or $0.53 per share in the first quarter of 2005 and to a net loss of $5.5 million, or a loss of $0.22 per share, in the preceding year’s second quarter. The second quarter 2005 net loss includes a one-time charge of $1.3 million, or approximately $0.05 per share, for restructuring charges associated with the Company’s cost reduction plans.
Revenue for the six months ended June 30, 2005 was $38.5 million, compared to revenue of $87.1 million in the first six months of 2004, again, reflecting the end of a contract with AT&T Wireless. Net loss for the first half of 2005 was $22.6 million, or a loss of $0.90 per share, compared to a net loss of $13.3 million, or a loss of $0.54 per share, in the first half of 2004.
“During the second quarter we began to realize the benefits of the most recently announced components of our overall cost cutting plan,” said Timothy A. Timmins, Metro One’s president and chief executive officer. “As we continue the transformation of the
Company’s business, we anticipate continued improvements in the next two quarters and beyond as our plans are fully implemented and reach the levels previously announced.”
Metro One will host a webcast conference call on Friday, July 29, 2005 at 10:00 a.m. Pacific Time to review second quarter 2005 results. To access the webcast, go to Metro One’s website at www.metro1.com. An archived webcast replay of the call will also be available at that website.
About Metro One Telecommunications
Metro One Telecommunications, Inc. is the leading developer and provider of Enhanced Directory Assistance and other enhanced telecom services. The Company operates a network of call centers located strategically throughout the U.S. Metro One handled approximately 306 million requests for information in 2004. Infone is Metro One’s premium personal assistant telephone service, for which consumers can sign up by visiting www.infone.com or by calling 888-411-1111. Infone® is a registered trademark of Metro One Telecommunications, Inc. For more information, please visit www.metro1.com or www.infone.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, but not limited to, factors detailed in the Company’s Securities and Exchange Commission filings. The forward-looking statements should be considered in light of these risks and uncertainties.
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(Tables follow)
METRO ONE TELECOMMUNICATIONS, INC
Statements of Operations
(Dollors in thousands, except per share date)
| | Three Months Ended | | Six Months Ended | |
| | 6/30/2005 | | 6/30/2004 | | 6/30/2005 | | 6/30/2004 | |
| | | | | | | | | |
Revenues | | $ | 20,149 | | $ | 43,539 | | $ | 38,528 | | $ | 87,068 | |
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Costs and expenses: | | | | | | | | | |
Direct operating | | 14,743 | | 24,174 | | 31,963 | | 49,717 | |
Selling, general and administrative | | 13,701 | | 25,030 | | 28,530 | | 50,985 | |
Restructuring charges | | 1,275 | | — | | 1,275 | | — | |
| | 29,719 | | 49,204 | | 61,768 | | 100,702 | |
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Loss from operations | | (9,570 | ) | (5,665 | ) | (23,240 | ) | (13,634 | ) |
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Other income | | 273 | | 292 | | 568 | | 411 | |
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Loss before income taxes | | (9,297 | ) | (5,373 | ) | (22,672 | ) | (13,223 | ) |
Income tax benefit | | (50 | ) | 124 | | (81 | ) | 124 | |
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Net loss | | $ | (9,247 | ) | $ | (5,497 | ) | $ | (22,591 | ) | $ | (13,347 | ) |
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Loss per common share: | | | | | | | | | |
Basic | | $ | (0.37 | ) | $ | (0.22 | ) | $ | (0.90 | ) | $ | (0.54 | ) |
Diluted | | $ | (0.37 | ) | $ | (0.22 | ) | $ | (0.90 | ) | $ | (0.54 | ) |
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Shares used in per share calculation: | | | | | | | | | |
Basic | | 25,061 | | 24,845 | | 25,023 | | 24,810 | |
Diluted | | 25,061 | | 24,845 | | 25,023 | | 24,810 | |
METRO ONE TELECOMMUNICATIONS, INC
Balance Sheets
(Dollars in thousands)
| | 6/30/2005 | | 12/31/2004 | |
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Cash and cash equivalents | | $ | 31,227 | | $ | 24,093 | |
Short-term investments, available for sale | | — | | 25,375 | |
Restricted cash | | 6,860 | | 4,900 | |
Accounts receivable | | 13,540 | | 17,524 | |
Prepaid costs and other current assets | | 2,844 | | 4,850 | |
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Total current assets | | 54,471 | | 76,742 | |
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Furniture, fixtures and equipment, net | | 11,215 | | 12,701 | |
Intangible assets | | 6,566 | | 5,916 | |
Other assets | | 471 | | 471 | |
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Total assets | | $ | 72,723 | | $ | 95,830 | |
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Accounts payable | | $ | 1,272 | | $ | 1,107 | |
Accrued liabilities | | 2,699 | | 2,003 | |
Accrued payroll and related costs | | 10,732 | | 12,125 | |
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Total current liabilities | | 14,703 | | 15,235 | |
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Other long-term liabilities | | 1,071 | | 1,158 | |
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Total liabilities | | 15,774 | | 16,393 | |
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Common Stock | | 120,051 | | 119,948 | |
Retained earnings | | (63,102 | ) | (40,511 | ) |
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Total shareholders’ equity | | 56,949 | | 79,437 | |
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Total liabilities and shareholders’ equity | | $ | 72,723 | | $ | 95,830 | |
