mPhase Announces First Profitable Fiscal Year in Company History
Gaithersburg, MD, October 13, 2021 (GLOBE NEWSWIRE) – mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”), a technology company developing the enhanced mPower 5G electric vehicle (EV) charging network and consumer engagement platform , today announced financial results for its two fourth quarter of fiscal 2021 and fiscal year ended June 30, 2021. The filing of fiscal 2021 marks a milestone as the first profitable annual results in 25 years of the company as a public company.
Fourth Quarter Fiscal 2021 Financial Highlights:
Revenue increased slightly to $ 7.8 million compared to $ 7.6 million in the prior year quarter
Gross profit margin increased 190 basis points to 27.8% from 25.9% in the same quarter of the previous year
The operating loss of ($ 0.5 million) was directly affected by a significant increase in software development, which jumped 205% to $ 1.8 million, from $ 0.6 million in the quarter previous.
Net loss of ($ 0.4 million), compared to net income of $ 0.75 million in the prior year quarter
Company cash flow doubled quarter over quarter to $ 2.5 million
Fiscal year 2021 Financial highlights of the year:
Net income set all-time high of $ 1.7 million, compared to loss of $ 14.1 million in fiscal 2020
Annual EPS was $ 0.02 compared to a negative result ($ 1.08) the previous year
In April 2021, mPhase recapitalized with new funding of $ 4.6 million and negotiated a one-time payment of $ 235,000 to eliminate its largest inherited debt ($ 784,000), resulting in a gain of $ 549,000 upon settlement.
The Company’s working capital strengthened considerably to $ 9.8 million
Equity set a new record of $ 11.7 million, an increase of 112% from $ 5.5 million at the end of 2020
Due to the continuous improvement in the financial position of the Company and its plans for future profitability and capital, there is no longer any substantial doubt as to the ability of the Company to continue its operations, as evidenced by the Recently filed Form 10-K.
“We had significant financing and maintenance activities in the fourth quarter as part of our efforts to position mPhase for our upcoming growth phase. . “The end result is that we are now well positioned to take our business to the next level, with a strong and healthy balance sheet and improved receivables. While all of our revenue currently comes from our technology platform and our learning track services business, our future growth centers on implementing our mPower ecosystem focused on electric vehicles.
“We recognize that investors are eagerly waiting to see firsthand what this ecosystem will look like. I’ve had the pleasure this week to provide several examples of the kind of scale we have before us, via announcements that will give us over 2,600 sites under our mPower brand. In addition, we are in active partnership discussions with companies across the spectrum of electric vehicles, including electric vehicle transport companies, real estate, traditional gas stations, restaurants and retail, higher education, grocery stores, utilities and other consumer services. We intend to move towards faster coverage in several geographies where we have the highest concentrations of multi-site customers, where several states appear to be excellent candidates for significant penetration during our initial deployment.
“Our mPower ecosystem resonates with companies looking to increase their green footprint and ESG (environmental, social and corporate governance) activities, while increasing sales on their sites. This is a very flexible package, allowing chain operators to implement electric vehicle charging and ultra-fast 5G in locations suitable for the site, while layering our customer engagement platform. consumers across their entire chain. Our revenue streams will vary by location under a variety of plans and configurations, but mPhase will generate monthly recurring revenue from each site. We are currently recruiting staff for our first installations and plan to announce more contracts by the end of the year. “
Conference Call Information
MPhase management will host a conference call and live webcast on October 14, 2021 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the company’s financial results.
To access the live call, dial 877-451-6152 (local) or 201-389-0879 (international).
A live webcast of the conference call can be accessed by clicking on the following link: mPhase Financial year 2021 results call webcast. Webcast Audio will be broadcast through your selected device. A full replay of the presentation will be available at the same link shortly after the live presentation concludes.
The live and archived webcast of the conference call will also be available in the Investor Relations section of the Company’s website at ir.mphasetech.com. The telephone replay will be available approximately two hours after the call ends and will remain available for one week. To access call reminder information, please use the following link: 844-512-2921, access code: 13724281.
About mPhase Technologies
mPhase is an emerging technology company focused on electric vehicles and focused on consumer engagement using data analytics and artificial intelligence to create a monetizable link between consumers and retailers at opportunistic times and places. The Company is currently building a connected ecosystem of electric vehicle charging, 5G internet connectivity and software solutions that optimize consumer engagement as part of a SaaS / TaaS model. Branded as mPower, this ecosystem will empower the way people shop, dine, fuel, and interact with the world to create a richer life experience. The mPower ecosystem is tailored to individual tastes and needs, with particular emphasis on empowering the green consumer of tomorrow. mPhase also has data-driven business units generating recurring revenue outside of its consumer ecosystem, in addition to legacy nanobattery technology and a related portfolio of patents that are slated for future development. Additional information is available on the mPhase website, www.mphasetech.com; and to www.mpower.co. Please follow us on twitter: @mPhase_Tech for the latest updates.
Safe Harbor Declaration
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 “may”, “believe”, “anticipate”, “” Intend “,” estimate “,” expect “,” may “,” continue “,” foresee “,” potential “,” plan “and similar expressions 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 or suggested by forward-looking statements are reasonable, we cannot guarantee 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 current expectations or projections. Actual results differ materially from forward-looking statements and the price of our common shares may fluctuate significantly. Forward-looking statements are also affected by risk factors described in documents filed by the Company with the United States Securities and Exchange Commission. Except as required by law, we assume no obligation to publicly update or revise 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 unforeseen events. events.
Brian M. Prénoveau, CFA
MZ Group – MZ North America