Xten Networks, Inc. (OTCBB: XNWK), a provider of VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP softphones, today announced results for its fourth fiscal quarter and fiscal year ended April 30, 2005.
Total revenues for the fiscal year ended April 30, 2005 climbed to a record $3,122,877, compared to $565,277 for the fiscal year ended April 30, 2004, an increase of 452 percent year-over-year.
Total revenues for the quarter climbed to a record $1,029,754, compared to $928,608 for the quarter ended January 31, 2005, an increase of 11 percent quarter-over-quarter. This compared to $219,404 in the quarter ended April 30, 2004, an increase of 369 percent compared to the same quarter in the previous year.
“February 1st represented a significant change in our business model with the company moving away from selling unlimited licenses. Consistent with management expectations, we believed that one-time revenue would be impacted as the company moved to a per-seat license model with a deliberate focus on annuity revenue. I am personally pleased with our growth of 11% quarter-over-quarter and 452% year-over-year,” stated Mark Bruk, chairman of Xten Networks. “We expect that the per-seat license model will take hold in the coming quarters* and we have made significant changes to our management team, which will allow us to better take advantage of the market opportunities presented by VoIP*.”
Financial Highlights for Fiscal 2005
- Increase of revenue by 452% to $3,122,877 (FY 2004: $565,277)
- Net loss of $780,408 (FY 2004: $174,318)
As a percentage of revenue our net loss has decreased from 31% in fiscal 2004 to 25% in fiscal 2005.
Financial Highlights for the Fourth Quarter 2005
- Increase of revenue by 369% to $1,029,754 (3M 2004: $219,404)
- Net loss of $302,173 (3M 2004: $30,357)
“I am impressed by the entire Xten team and believe that the financial growth reflected in today’s announcement reflects positively Xten’s already prominent position in the VoIP endpoint market,” said Larry Timlick, president of Xten Networks. “The changes we have made to the management team, the strategy, product focus and customer segmentation will allow Xten to continue its strong growth trajectory and revenue quality*. We significantly grew our customer base through per-seat licensing agreements with service providers such as Portugal Telecom and Telio; while validation of our technology continues as demonstrated by the licensing of our voice engine to leading global internet companies like Yahoo!. Xten is very happy with the addition of these new customers, including; Yak Communications Inc., and Phonzo Communications AS. I look forward to the execution of the company’s business plan in the coming quarters as we continue to expand our active customers beyond the current 120 plus.”
The Company’s Annual Report on Form 10-KSB including consolidated balance sheet and statement of operations for the fiscal year ended April 30, 2005 was filed and is available for viewing at www.sec.gov.
About Xten Networks, Inc.
Xten is a developer of award-winning, high-quality, carrier-grade SIP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. Xten’s SIP softphones are available either pre-configured or as a software development kit (SDK), and provide VoIP (Voice over IP), Video over IP, IM (Instant Messaging), and Presence functionality. Xten has a feature-rich FREE SIP softphone dubbed X-Lite, in addition to the fully featured X-PRO commercial softphone and eyeBeam, a SIP Video over IP softphone with IM and Presence. Through its deployments with leading service providers, Xten has more than 700,000 IP endpoints deployed worldwide.
For more information please visit www.xten.com.