Exhibit 99.1
FOR IMMEDIATE RELEASE
COVISTA COMMUNICATIONS, INC. ANNOUNCES OPERATING RESULTS
FOR QUARTER AND SIX MONTHS ENDED JULY 31, 2004
CHATTANOOGA, TN - September 9, 2004 - Covista Communications, Inc. (NASDAQ
symbol: CVST) today announced operating results for the three and six-month
periods ended July 31, 2004.
For the three months ended July 31, 2004, the Company reported a loss of
$1,150,000 or $0.06 a share on revenues of $18,355,000 as compared with a loss
of $885,000 or $0.05 per share on revenues of $21,457,000 for the prior year's
fiscal period. The Company reported a loss of $3,150,000 or $0.18 per share on
revenues of $36,549,000 for the six months ended July 31, 2004, as compared with
a loss of $1,663,000 or $0.09 per share on revenues of $44,727,000 for the
comparable period in the prior fiscal year.
The overall revenue decrease is primarily related to a decline in the retail
commercial segment, partially offset by moderate growth in the KISS residential
segment.
The Company has previously announced that, subsequent to July 31, 2004, it had
successfully closed a transaction where it sold the majority of its retail
commercial customer base and selected assets to PAETEC Communications for cash.
The moderate growth in the KISS segment is primarily attributed to the marketing
of local service to residential users in selected markets. While the Company has
launched local services to the KISS residential segment in certain markets, it
plans to expand the number of markets in which it intends to offer its local and
long distance bundled product offering.
John Leach, Jr., Covista's President and Chief Executive Officer, stated,
"Closing the transaction with PAETEC provides us with significant advantages as
we seek to navigate through pending uncertain regulatory waters. The transaction
not only strengthens our working capital position, but also enables us to
improve our geographic focus related to target customers as well as the
infrastructure and costs related to our switching network and back office
customer support requirements."
We are providing the following consolidated summary of operations (unaudited)
for the three and six- month periods ended July 31, 2004 and 2003 (amounts and
number of shares in thousands except for per share data):
Three-Months Ended July 31 Six-Months Ended July 31
2004 2003 2004 2003
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Revenues $18,355 $21,457 $36,549 $44,727
Cost and expense 19,406 22,251 39,509 46,223
Operating loss (1,052) (794) (2,960) (1,496)
Other expense, net (98) (91) (190) (167)
Net loss (1,150) (885) (3,150) (1,663)
Comprehensive loss $(1,150) $(885) $(3,150) $(1,663)
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Basic loss per common share $(0.06) $(0.05) $(0.18) $(0.09)
Diluted loss per common share $(0.06) $(0.05) $(0.18) $(0.09)
Average number of common shares
Basic 17,822 17,783 17,822 17,783
Diluted 17,822 17,783 17,822 17,783
About Covista:
Covista is a facilities-based provider of telecommunications services with a
substantial customer base, principally residential and small sized businesses.
Its products and services include a broad range of voice, data and Internet
solutions, including long distance and toll-free services, local dial tone and
features, calling cards, frame relay, Internet access, VPN, directory assistance
and teleconferencing services. Covista currently owns and operates switches in
Chattanooga, Dallas and Minneapolis. Covista operates Network Operation, call
center and information technology facilities in Chattanooga to monitor its
switched network and to coordinate its various services. For information on
becoming a Covista customer, please telephone 800-805-1000 or visit the
Company's website at www.covista.com. About Covista:
Information relating to forward-looking statements:
This press release contains historical and forward-looking statements made
pursuant to the safe harbor provisions of the private securities litigation act
of 1995. Investors are cautioned that forward-looking statements such as
statements of the company's plans, objectives, expectations and intentions
involve risks and uncertainties. The cautionary statements made in this release
should be read as being applicable to all related statements wherever they
appear. Statements containing terms such as "believes," "expects," "plans,"
"projects," "intends," "estimates," "anticipates," or similar terms, are
considered to contain uncertainty and are forward-looking statements. The actual
results could differ materially from those discussed. Factors that could
contribute to such differences include: changes in market conditions and
increased competition from other telecommunications and internet service
providers; government regulations; the volatile and competitive environment for
internet telephony; advances in competitive products or technologies that could
reduce demand for services; availability of transmission facilities; management
of rapid growth; customer concentration and attrition; the ability to
successfully integrate acquired companies; the ability to successfully develop
and bring new services to market; inaccurate or incomplete assumptions on the
part of management; and other risks discussed in the company's SEC filings,
including form 10-k and form 10-q, which can be accessed at the SEC web site at
www.sec.gov.
Readers of this release should understand that it is not possible to predict or
identify all such risk factors. Consequently, this list should not be considered
a complete statement of all potential risks or uncertainties. Covista does not
assume the obligation to update any forward-looking statement, except as is
required by applicable law.
Contact:
Frank Pazera
Executive Vice President and Chief Financial Officer
Covista Communications, Inc.
Tel: (423) 648-9500
Fax: (423) 648-9502
E-mail: fpazera@covista.com