FOR IMMEDIATE RELEASE
COVISTA COMMUNICATIONS, INC. ANNOUNCES OPERATING RESULTS
FOR THE QUARTER ENDED APRIL 30, 2005
CHATTANOOGA, TN - June 14, 2005 - Covista Communications, Inc. (NASDAQ symbol:
CVST) today announced operating results for the quarter ended April 30, 2005.
For the first quarter of fiscal year 2006, ending April 30, 2005, Covista
Communications, Inc. earned net income of $217,000 on revenue of $11,253,000 as
compared to a net loss of $(2,000,000) on revenue of $18,194,000 for the prior
year's first fiscal quarter. The Company posted earnings per share of $.01 for
the current year versus a loss of $(.11) per share for the prior year's first
fiscal quarter.
The overall revenue decline is primarily related to a decrease in the retail
segment, resulting from the previously announced sale of a substantial portion
of the retail customer base and certain assets to PAETEC. The decline in the
retail segment was partially offset by growth in the residential segment, which
was primarily attributed to the marketing of local service to users in selected
markets.
John Leach, Jr., Covista's President and Chief Executive Officer, stated, "We
are pleased to report net income results for the quarter ended April 30, 2005.
This is our second consecutive quarter of net income and a demonstration that
the changes we have made during the last twelve months are taking hold. With
our improved balance sheet, strong cash position and efficient operating
results, we are now poised to improve our market position. We will continue
to seek to grow the residential segment. In addition, we plan to re-enter
the retail segment in selected markets. Our recent announcement to
voluntarily deregister with the SEC and delist our Common Stock from NASDAQ
should free up additional cash resources while allowing our Management team to
sharpen its focus on penetrating profitable market opportunities."
We are providing the following consolidated summary of operations (unaudited)
for the three months ended April 30, 2005 and 2004 (amounts and number of shares
in thousands except for per share data):
QUARTER ENDED APRIL 30
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2005 2004
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Revenue $11,253 $18,194
Cost & Expense 11,049 20,102
Operating Income (Loss) 204 (1,908)
Other Income (Expense) 13 (92)
Net Income (Loss) 217 (2,000)
Basic Earnings (Loss) per Common Share $ .01 $ (0.11)
Diluted Earnings (Loss) per Common Share $ .01 $ (0.11)
Weighted Average Number of Common Shares
Basic 17,822 17,822
Diluted 17,822 17,822
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.
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
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