mPhase Technologies Announces Fiscal Third Quarter Financial Results and Provides Corporate Update

Rhea-AI Summary

mPhase Technologies (OTCQB: XDSL) reported its fiscal third quarter results on May 19, 2021, showcasing a slight revenue increase to $7.7 million, up from $7.6 million year-over-year. The gross profit margin rose to 26.5%, with consistent operating income of $1.2 million and a net income of $0.3 million, marking the fifth consecutive profitable quarter. The company's balance sheet strengthened with $7.0 million in financing aimed at enhancing growth in 5G and EV charging sectors.

Positive

• Fifth consecutive quarter of profitability with net income of $0.3 million.
• Revenue increased to $7.7 million, reflecting year-over-year growth.
• Gross profit margin improved by 90 basis points to 26.5%.
• Secured $7.0 million in financing to support expansion into 5G and EV charging markets.

Negative

• None.

Company Reports Fifth Consecutive Quarter of Profitability; Fortifies Balance Sheet to Pursue 5G and EV Charging Opportunities

Gaithersburg, MD, May 19, 2021 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTCQB: XDSL) (“mPhase” or the “Company”), a technology company specializing in EV charging and consumer engagement, announced financial results for the fiscal third quarter ended March 31, 2021 and provided a corporate update.

Fiscal Third Quarter 2021 Financial Highlights:

• Revenue in the fiscal third quarter of 2021 increased to $7.7 million, compared to $7.6 million in the same year-ago quarter
• Gross profit margin increased 90 basis points to 26.5%, compared to 25.6% in the same year-ago quarter
• Operating income of $1.2 million was consistent with the $1.2 million generated in the same year-ago quarter
• Net income totaled $0.3 million and represented the Company’s fifth consecutive profitable quarter
• Fortified balance sheet with financings totaling $7.0 million with institutional investors to support near-term growth initiatives targeting 5G and EV charging
  

Management Commentary
“Our strategy to find experts in Artificial Intelligence (AI), data analytics, and other software-based disciplines to create a team with the skill sets to support global technology deployments is beginning to unfold,” said Anshu Bhatnagar, Chief Executive Officer of mPhase. “Leveraging this strategy we are now layering on additional technology platforms—such as our AI-based itinerary planner ‘Travel Buddhi’ and recently announced acquisition of ‘CloseComms’—we are now rolling out a robust and tested consumer engagement platform.

“To that end, we are now working to bring our mobile consumer platform to the next level by solving a major issue for retailers—creating foot traffic via proximity-based and directed promotional consumer engagement. We believe our version will add vertical elements that will resonate with both consumers and retailers, alike, while simultaneously integrating our planned entry into the 5G and EV charging industries, which will occur through acquisitions and partnerships.

“To roll out these consumer engagement initiatives, we recently hired industry veteran Ed Rinker to lead our international sales, who brings over 25 years of experience in creating consumer and sales channel programs for Fortune 500 brands across a broad spectrum of fields. His experience goes beyond consumer products and covers multiple categories that will fit neatly within our expanding consumer engagement ecosystem. Our initial goal is to develop a nationwide footprint in the Quick Service Restaurant (QSR) sector, but we are layering on new technology that can significantly expand our reach into additional markets.”

Mr. Bhatnagar, concluded: “As we move throughout the remainder of the year, we will remain focused on monetizing world-class Software as a Service (SaaS) and Technology as a Service (TaaS) businesses when consumers are mobile. Our TaaS strategy begins with the equipment and service on the front end, supplemented by SaaS retail, consumer product brand promotions, and other sources of revenue that can be both recurring and transactional. Ultimately, we believe the steps we are taking today will build sustainable shareholder value over the long-term.”

About mPhase Technologies
mPhase is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. The Company has assembled industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com; and at www.learningtrack.com. 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.

Investor Relations:
Brian M. Prenoveau, CFA
MZ Group - MZ North America
1-561-489-5315
XDSL@mzgroup.us
www.mzgroup.us

FAQ

What are the financial results for mPhase Technologies for Q3 2021?

mPhase Technologies reported $7.7 million in revenue for Q3 2021, a slight increase from $7.6 million in the same quarter last year, with a net income of $0.3 million.

How is mPhase Technologies planning to use its recent financing?

mPhase plans to use the $7.0 million in recently secured financing to enhance growth initiatives targeting the 5G and EV charging sectors.

What recent developments did mPhase Technologies announce during the Q3 2021 earnings release?

mPhase announced the acquisition of 'CloseComms' and the hiring of Ed Rinker to lead international sales, focusing on expanding its consumer engagement platform.