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Preferred Voice Reports Preliminary Fourth Quarter Fiscal Year-End Revenue and
Operating Results
Company Grows Revenues Tenfold in FY 2002
DALLAS, TX - (May 15,
2002) - Preferred Voice, Inc. (OTCBB: PFVI), the leading network-based speech
application provider, today reported preliminary financial results for the
fourth quarter and fiscal year ending March 31, 2002. "Our 2002 operating
results reflect our strong growth at Preferred Voice," said Bill Schereck, the
company's president and chief operating officer. "We produced substantial growth
across all aspects of our business last year, while successfully launching a new
revenue sharing model for voice activated dialing."
In FY 2002,
Preferred Voice introduced innovative voice recognition products amidst a
struggling telecommunications sector. Nonetheless, the company has enjoyed
considerable successes, including:
45 carriers signed with 5.4 million subscribers under contract
33 systems deployed among 16 carriers in 21 states, with a total reach of
2.5 million subscribers
revenues increased by 968%
Losses narrowed by 21%
120,000 paying subscribers at the end of March, 2002. The company expects to
have 250,000 paying subscribers by July, 2002
For the fiscal year ending
March 31, 2002, the company expects to report revenues of $1,474,000. This
compares with revenues of $138,000 for the prior fiscal year ended March 31,
2001. The company expects to report a loss of $3,835,000 in FY 2002. This
compares with a loss of $4,743,000 in FY 2001. Shares outstanding increased from
15,672,586 to 18,407,493 over the period. For the fiscal fourth quarter ended
March 31, 2002, the company expects to report a loss of $883,406 on revenues of
$614,000. This compares to a loss of $1,904,000 on revenues of $71,000 in the
fourth quarter ended March 31, 2001.
Various temporary, macroeconomic
factors had especially large impacts on wireless carriers, which affected the
rollout of the Company's Voice Activated Dialing (VAD) platform in a number of
ways:
Reduced Public Visibility: As a result of September 11 and the Mideast
Crisis, concerns about driver safety and "keeping two hands on the wheel"
received less attention in the press and in the public psyche
Changes in Legislation: Proposed legislation to make dialing on cell phones
while driving illegal has been put on hold in many states. However, when this
legislation does ultimately come into affect, it will create a higher demand and
need for VAD
Turnover of Key Personnel at Participating Telcos: In a number of cases, the
key executives responsible for planning and executing the launch of VAD were
either laid off or reassigned
Changing Schedules and Priorities: In a crisis atmosphere, it is unrealistic
to expect carriers to focus on deploying new services.
In addition, the
sale of the wireless division by Century Tel to Alltel occurred in the midst of
the Company's VAD deployment schedule. Although five of the seven regional
locations were put on hold, the Company fully expects all seven of these
deployments to resume once the transaction is completed.
"Although the
company has faced a number of deployment delays, our customer base remains
strong. Revenues projected from these customers in FY 2002 will be realized in
this current fiscal year," said Schereck. "As we look forward to FY 2003, we
estimate large numbers of carriers, including many that have yet to sign up with
us, will embrace the Preferred Voice VAD platform as an important new source of
revenues and an important component of their recovery strategy."
Preferred Voice has responded to a volatile telecommunications
environment by launching two strategic initiatives:
The Company has
developed a new, patent-pending product that transforms "411 directory
assistance" into a true Information Gateway. The product will allow subscribers
to not only get a phone number and have it automatically connected, but it can
also access a full range of content services on a per call basis. The Company
believes 411 Information Gateway has immediate, large-scale revenue-generating
potential for both wireline and wireless carriers. Since wireline carriers have
more stability in today's environment, the Company is targeting several wireline
carriers as potential "first wave" customers and is optimistic about achieving
near term success with the second phase of its rollout.
The Company has
developed and successfully deployed a rapid, cost-effective method of simulating
"Release Links" for switches that do not currently possess this capability. This
engineering breakthrough more than doubles the potential market for Voice
Activated Dialing to include virtually any wireline or wireless carrier. It also
enables Preferred Voice to assure carriers that the Company can bring their
entire system on line, regardless of the kind or number of switchers they are
currently utilizing.
"Our strong performance in a challenging
environment underscores the strength of our business model," said Schereck. "I'm
also very pleased with the speed at which we have launched our VAD service while
continuing our track record of strong operational performance."
About
Preferred Voice
Based in Dallas, TX, Preferred Voice, Inc. is a leading
voice recognition technology company. Through its Carrier Services Group,
Preferred Voice markets its products and services to wireless, ILEC and CLEC
companies across the United States. These enhanced voice services include Safety
Talk voice activated dialing, voicemail navigation, VAC voice accessed content,
voice calling cards, BusinessConnect voice directory assistance and EmmaPR voice
telephone receptionist. Preferred Voice's Network Services Group provides
carrier connectivity, call management, provisioning and service delivery
solutions for carriers, voice portal providers, wireless application providers
and other enhanced features providers. Preferred Voice has signed agreements
with 45 telecom carriers. For more information please visit
www.preferredvoice.com.
SOURCE: Preferred Voice, Inc.
This press
release contains forward-looking statements. Since all statements about
Preferred Voice's plans, estimates and expectations are based on current
projections that involve risks and uncertainties, and are subject to change at
any time, the company's actual results may differ materially from expected
results. Readers should consider these risks and uncertainties, which are
discussed in documents filed by Preferred Voice, Inc., with the Securities and
Exchange Commission. These documents identify important factors that could cause
the actual results to differ materially from those contained in the
forward-looking statements. Preferred Voice, Inc. expressly disclaims any
obligation to update any forward-looking statements.
Contact:
Joelle Mertzel, (310) 586-7161
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