Welcome!

Mobile IoT Authors: Liz McMillan, Elizabeth White, David Sprott, Peter Silva, Sematext 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
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 business opportuni...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
SYS-CON Events announced today that CDS Global Cloud, an Infrastructure as a Service provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CDS Global Cloud is an IaaS (Infrastructure as a Service) provider specializing in solutions for e-commerce, internet gaming, online education and other internet applications. With a growing number of data centers and network points around the world, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.