mPhase Reports Record Fiscal 2022 First Quarter Results

Rhea-AI Summary

mPhase Technologies, Inc. (XDSL) reported record revenue of $8.2 million for Q1 fiscal 2022, marking an 8.4% increase from $7.6 million in the prior year. Gross profit margin rose significantly to 31.6%, up 576 basis points. The company returned to profitability with a net income of $0.3 million, compared to a loss of $0.4 million previously. A strong cash position of $1.8 million and record shareholders’ equity of $12.2 million were noted. mPhase is launching an EV charging network and rebranding to mPower Technologies, aiming for Nasdaq uplisting.

Positive

• Record revenue of $8.2 million, up 8.4% year-over-year.
• Gross profit margin increased to 31.6%, a rise of 576 basis points.
• Operating income improved to $1.4 million, reflecting a 15.2% increase.
• Net income of $0.3 million shows a return to profitability from a net loss.
• Strong cash position at $1.8 million and record shareholders' equity of $12.2 million.

Negative

• None.

Posts Highest Revenue and Gross Margin in Company History

Gaithersburg, MD, Nov. 22, 2021 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”), a technology company developing the mPower 5G-enhanced electric vehicle (EV) charging network and consumer engagement platform, today reported financial results for its fiscal 2022 first quarter, which ended September 30, 2021. The quarter marked a return to profitability and showed improvement in multiple financial categories.

Fiscal 2022 First Quarter Financial Highlights:

• Revenue grew $0.6 million or 8.4% to a record $8.2 million compared to $7.6 million in the prior year quarter;
• Gross profit margin increased 576 basis points to 31.6%, compared to 25.9% in the same year-ago quarter;
• Operating income of $1.4 million represents a 15.2% year-over-year increase;
• Net income of $0.3 million marked a return to profitability compared to the $0.4 million net loss in the prior quarter;
• The Company’s cash position remained strong at $1.8 million, with shareholders’ equity achieving a new record of $12.2 million.
  

Business Developments

• Announced the first mPower ecosystem partner sites covering 3,265 locations in Virginia, Florida, and Illinois;
• Launched a rebranding initiative, which will change the Company’s name from mPhase Technologies, Inc. to mPower Technologies, Inc. with a symbol change from XDSL to POWR;
• Appointed financial industry veteran Angelia Hrytsyshyn to the role of Chief Financial Officer;
• Announced the creation of the mPower marketplace, a blockchain-based digital incentive and ESG (Environment, Social, and Governance) program designed to reward sustainability and environmentally positive outcomes;
• Signed the first supply contract for mPower-branded level 2 chargers.
  

Management Commentary

“This quarter was a start to what we believe will evolve into a significant revenue ramp, as we experienced some long-awaited growth in our core business,” explained CEO Anshu Bhatnagar. “While our major push right now is in rolling out our EV-centric mPower ecosystem, we have the added advantage of also beginning a new growth phase in our profitable learning business, which we expect to continue to grow in upcoming quarters. This is a major bonus for us, because this highly predictable and profitable revenue stream will help bolster our financial position as we commence our major mPower roll-out. We are essentially Nasdaq-ready, so our enhanced financial position has accelerated our timeline and created the right conditions for an expected successful uplist in the future.”

“Most importantly, we now have the suppliers, installers, and sites in-hand to commence a significant expansion plan for the mPower ecosystem. We expect the impact to be substantial, with initial revenue in calendar 2021 and accelerating high margin, recurring revenue throughout 2022. Our roll-out will be staged, with sites first installing our patented engagement platform, followed by either 5G and/or EV charging. We are also layering on a rewards and ESG marketplace that can generate additional revenue. We have ordered our first 180 level 2 chargers for a number of high-profile pilots and are involved in engineering for level 3 sites in conjunction with other major partners. Our pipeline includes over 27,000 additional prospects, a significant number of retailers in the restaurant, convenience, grocery store, fuel, and utility sectors, along with specialty services companies. The response to our mPower ecosystem has been universally positive in every industry group we have approached, so our locations will emphasize use-case installations across a broad selection of retail and service settings. We are first to market with the only complete EV charging ecosystem in the world, making this a historic and exciting time for our company.”

Conference Call Information

mPhase management will host a conference call and live webcast on Monday, November 22, 2021 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 First Quarter 2022 Webcast Link. Webcast audio will stream through your selected device. A full replay of the presentation will be available at the same link shortly after the conclusion of the live presentation.

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 use the following: 844-512-2921, passcode: 13725231.

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 charging, 5G internet connectivity and software solutions that optimize consumer engagement within the framework of a SaaS/TaaS model. 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.

Contacts:

Investor Contact:
ir@mphasetech.com

Investor Contact
Brian M. Prenoveau, CFA
MZ Group - MZ North America
561-489-5315
XDSL@mzgroup.us
www.mzgroup.us

FAQ

What were mPhase Technologies' financial results for Q1 FY 2022?

mPhase reported revenue of $8.2 million, a net income of $0.3 million, and a gross profit margin of 31.6%.

How does mPhase's Q1 FY 2022 revenue compare to the previous year?

Revenue grew by 8.4% compared to $7.6 million in the same quarter last year.

What changes are being made to mPhase Technologies' branding?

The company is rebranding from mPhase Technologies, Inc. to mPower Technologies, Inc. and changing its stock symbol from XDSL to POWR.

What is the current cash position of mPhase Technologies?

mPhase has a cash position of $1.8 million, along with record shareholders' equity of $12.2 million.

What future plans does mPhase have for its EV charging network?

mPhase plans to expand its mPower ecosystem significantly in 2022, aiming to generate high-margin recurring revenue.