Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

News Feed Item

Lightyear Network Solutions Announces Third Quarter 2012 Financial Results

Lightyear Network Solutions, Inc. (the “Company”) (OTC Markets: LYNS), an established provider of data, voice and wireless telecommunication services to business and residential customers throughout North America, announced today its financial results for the third quarter ended September 30, 2012.

Financial highlights for the Third Quarter of 2012 include:

  • Wireless services revenue grew by approximately $293,000 (or 27%) in the third quarter of 2012 compared with the third quarter of 2011, while local services revenue decreased by approximately $208,000 (or 11%) for the same period
  • Operating expenses declined by approximately $667,000 (or 10%) in the third quarter of 2012 compared with the year-ago third quarter
  • Cash generated from operations increased to approximately $331,000 for the third quarter of 2012 compared with approximately $177,000 for the second quarter of 2012
  • Non-GAAP EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and Non-Cash Stock-Based Compensation) decreased to approximately ($111,000) in the third quarter of 2012 compared with approximately $418,000 in the second quarter of 2012

“We continue to manage through these challenging economic times and the continued decrease in residential local phone service throughout the industry,” said Stephen M. Lochmueller, Lightyear’s Chief Executive Officer. “While we were disappointed with our EBITDA results, we were pleased with the increase of cash generated from operations and the growth of our wireless services revenue. The Company will continue to focus of providing the highest quality services in the most efficient manner possible. We are implementing plans that we expect will improve our EBITDA performance in coming quarters.”

About Lightyear Network Solutions, Inc.

Through its wholly owned subsidiaries, Lightyear Network Solutions, Inc. provides telecommunication services to large, medium and small businesses and to residential consumers throughout North America. Lightyear’s product offerings include local PRI and digital T1, enhanced Internet services, MPLS, Ethernet, Voice over Internet Protocol (VoIP), local and long distance service, and conferencing. Lightyear also offers wireless services to customers in the U.S. through wholesale contracts with multiple wireless providers. Lightyear built its own VoIP network in 2004 to enhance its product offerings and has partnered with some of the most prominent names in telecom including: Sprint, Verizon, AT&T, Level 3, Windstream, CenturyLink, tw telecom, XO Communications and Cisco. Lightyear Network Solutions is headquartered in Louisville, Ky. Additional information can be found at: www.lightyear.net.

Forward-Looking Statements

This press release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Lightyear’s actual results to differ materially from those currently anticipated. These forward-looking statements may include, without limitation, statements about our marketing and acquisition opportunities, business strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, the risks and uncertainties which could cause our actual results to differ materially from those currently anticipated includes changes in market conditions, our ability to integrate acquired operations, the ability to obtain additional financing on satisfactory terms, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and risk factors described in our Form 10-K for the year ended December 31, 2011, filed on March 30, 2012, and other filings with the Securities and Exchange Commission. Lightyear undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

 
Lightyear Network Solutions, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
 
  September 30,   December 31,
2012 2011
(unaudited)
Assets
 
Current Assets:
Cash $ 27,841 $ 108,133
Accounts receivable, net 4,730,574 5,237,404
Vendor deposits 1,898,788 1,771,028
Inventories, net 244,707 335,964
Prepaid expenses and other current assets   1,525,112     2,523,039  
 
Total Current Assets 8,427,022 9,975,568
 
Property and equipment, net 6,862,059 7,161,057
Intangible assets, net   1,601,249     1,928,749  
 
Total Assets $ 16,890,330   $ 19,065,374  
 
Liabilities and Stockholders' Deficiency
 
Current Liabilities:
Accounts payable $ 6,781,160 $ 7,216,117
Interest payable - related parties 46,370 47,282
Accrued agent commissions 520,717 530,268
Accrued agent commissions - related parties 986 1,069
Deferred revenue 489,636 427,715
Other liabilities 1,616,476 1,876,163
Other liabilities - related parties 127,111 81,718
Current portion of notes payable 921,907 895,918
Current portion of capital lease obligations   174,355     239,203  
 
Total Current Liabilities 10,678,718 11,315,453
Notes payable, non-current portion 2,638,783 3,334,992
Capital lease obligation, non-current portion 741,730 758,750
Note payable - related party 6,250,000 6,250,000
Deferred tax liability, non-current portion, net   326,683     326,683  
 
Total Liabilities   20,635,914     21,985,878  
 
Commitments and contingencies
 
Stockholders' Deficiency:

Common stock, $0.001 par value; 70,000,000 shares authorized; 22,086,641 shares issued and outstanding at September 30, 2012 and December 31, 2011

22,087 22,087
Note receivable from affiliate (1,223,203 ) (1,223,203 )
Additional paid-in capital 10,067,172 9,490,226
Accumulated deficit   (12,611,640 )   (11,209,614 )
 
Total Stockholders' Deficiency   (3,745,584 )   (2,920,504 )
 
Total Liabilities and Stockholders' Deficiency $ 16,890,330   $ 19,065,374  
 
 
Lightyear Network Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
 
(unaudited)
 
    For The Three Months     For The Nine Months
Ended September 30, Ended September 30,
2012   2011 2012   2011
 
Revenues $ 16,690,248 $ 17,409,514 $ 50,484,592 $ 53,886,561
 
Cost of revenues   11,535,727     11,089,139     33,786,834     34,735,187  
 
Gross Profit   5,154,521     6,320,375     16,697,758     19,151,374  

Operating Expenses

Commission expense 1,355,499 1,544,955 4,246,221 4,581,358
Commission expense - related parties 18,435 13,734 54,912 (2,834 )
Depreciation and amortization 332,423 437,182 999,335 1,282,970
Bad debt expense 314,423 195,429 774,301 698,937
Selling, general and administrative expenses 3,677,626 4,098,751 11,578,934 13,341,507

Selling, general and administrative expenses - related party

- 75,159 96,769 125,231
 
Total Operating Expenses   5,698,406     6,365,210     17,750,472     20,027,169  
Loss From Operations   (543,885 )   (44,835 )   (1,052,714 )   (875,795 )
 
Other (Expense) Income
Interest income 5,704 8,151 8,779 24,183
Interest income - related parties - 192,664 - 570,967
Interest expense (57,424 ) (77,180 ) (182,256 ) (234,878 )
Interest expense - related parties (70,075 ) (98,459 ) (209,985 ) (296,276 )
Other income   32,723     122,304     34,150     233,372  
 
Total Other (Expense) Income   (89,072 )   147,480     (349,312 )   297,368  
 
(Loss) income before income taxes (632,957 ) 102,645 (1,402,026 ) (578,427 )
Income tax benefit   -     -     -     123,800  
Net (Loss) Income (632,957 ) 102,645 (1,402,026 ) (454,627 )
 
Cumulative Preferred Stock Dividends   -     (383,122 )   -     (1,136,877 )
 
Loss Attributable to Common Stockholders $ (632,957 ) $ (280,477 ) $ (1,402,026 ) $ (1,591,504 )
 
Net Loss Per Common Share - Basic and Diluted $ (0.03 ) $ (0.01 ) $ (0.06 ) $ (0.07 )

Weighted Average Number of Common Shares Outstanding - Basic and Diluted

  22,344,829     22,242,475     22,312,119     21,641,444  
 

Non-U.S. GAAP Financial Measures

The Company has utilized the non-GAAP information set forth below as an additional device to aid in understanding and analyzing its financial results for the three months ended September 30, 2012. Management believes that these non-GAAP measures will allow for an evaluation of the operating performance of the Company’s business and facilitate meaningful comparison of the results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered a substitute for results that are presented in a manner consistent with GAAP.

A limitation of utilizing these non-GAAP measures is that GAAP accounting does in fact reflect the underlying financial results of the Company’s business. Therefore, management believes that the GAAP measures as well as the corresponding non-GAAP measures of the Company’s financial performance should be considered together.

A reconciliation of the Company’s GAAP net (loss) income for the quarters ended September 30, 2012, and June 30, 2012, to its non-GAAP EBITDA for the same periods are set forth below:

 
  For The Three Months
Ended
 
September 30, 2012 June 30, 2012
(unaudited) (unaudited)
 
GAAP Net (Loss) $ (632,957 ) $ (147,850 )
 
Depreciation and Amortization 332,423 332,342
Interest expense, net 121,795 130,797
Non-Cash Stock-Based Compensation   67,992     102,546  
 
Non-GAAP EBITDA adjusted for non-cash
stock-based compensation $ (110,747 )   $ 417,835  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...