Pervasip Corp. Reports First Quarter Results

WHITE PLAINS, N.Y., April 23, 2013 /PRNewswire/ -- Pervasip Corp. (OTCQB:PVSP)

Summary of Recent Accomplishments:

Quarterly net income of $2.3 million
Gross margin of 54%
$4.6 million improvement in working capital deficiency over the past three months
Significant reductions in short-term debt, interest expense and SG&A expense

Pervasip Corp. (the "Company"), a cloud-based voice and video communications solutions, apps and services provider, today reported earnings for the quarter ended February 28, 2013.

Net income for the quarter ended February 29, 2012 was $2,312,699, or $0.01 per basic share and $0.00 per diluted share, compared to $3,206,757, or $0.03 per basic share and $0.02 per diluted share, in the first quarter of 2012. 

The gross margin for the quarters ended February 28, 2013 and February 29, 2012, was approximately the same for both periods at 54% and 55%, respectively.  The slight decrease in the gross profit percentage is attributable to the increased number of free subscribers utilizing the VoX mobile VoIP app.  To attract retail customers, the Company offers calling rates that are steeply discounted in comparison to wireless carriers and several calling plans with free minutes or a free month of service.

The Company's working capital deficiency decreased from $11,816,538 at November 30, 2012 to $7,162,293 at February 28, 2013, an improvement of $4,654,245.  Short-term debt decreased from $7,444,490 at November 30, 2012 to $2,765,299 at February 28, 2013, an improvement of $4,679,191.

Interest expense decreased by $914,896, to $163,570 for the three months ended February 28, 2013, as compared to $1,079,466 for the three months ended February 29, 2012, due to lower debt levels and interest rates.

Selling, general and administrative expenses decreased by $353,442, or approximately 48%, to approximately $380,549 for the three-month period ended February 28, 2013 from approximately $733,691 reported in the same prior-year fiscal period. 

"We are pleased that we have experienced considerable improvement in our balance sheet and income statement," said Paul Riss, Pervasip's CEO.  "The decreased interest expense is noteworthy and we continue to successfully reduce our debt." 

"We consistently see growth in downloads, installs and purchases of our mobile VoIP app," continued Riss.  "Like many of the elite app companies, we see hundreds of downloads and installs each day.  Unlike many other app companies, we also have a revenue-generating app, for which we are collecting approximately 20 payments each day, in the month of April.  We anticipate the imminent release of our iPhone app will double our number of paid subscribers." 

For additional disclosure regarding operating results, refer to the Quarterly Report on Form 10-Q for the period ended February 28, 2013, which has been filed with the Securities and Exchange Commission.

The Company's Android app can be downloaded directly from Google Play (https://play.google.com/store/apps/details?id=net.voxcorp).

About Pervasip

Pervasip delivers wholesale and retail video and voice VoIP telephone services for the residential and small business markets.  Pervasip differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems.  It recently entered the mobile VoIP services and applications arena, which Juniper Research expects to reach 640 million users (http://www.juniperresearch.com/viewpressrelease.php?pr=266) by the end of 2016.  It offers a feature-rich, low-cost, high-quality alternative to traditional phone services.  For more information, please visit www.voxcorp.net (http://www.voxcorp.net/).  

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements.  These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.  You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements.  Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity.  We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.                                                                                                   

Pervasip Corp. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)





For the Three Months Ended


Feb. 28, 2013

Feb. 29, 2012




Revenues

$   238,565

$   275,497




Costs and expenses:



  Costs of services

110,871

124,888

  Selling, general and administrative

380,549

733,691

               Total costs and expenses

491,420

858,579




Loss from operations

(252,855)

(583,082)




Other income (expense):



  Interest expense

(163,570)

(1,079,466)

  Gain on troubled debt restructuring

2,714,461

4,779,634

  Gain on settlement of liabilities

68,750

-

  Mark to market adjustment of derivative liabilities

(54,087)

89,671

           Total other income

2,565,554

3,789,839




Net income 

$2,312,699

$3,206,757




Basic earnings per share

$0.01

$0.03

Diluted earnings per share

$0.00

$0.02







FOR FURTHER INFORMATION:

PERVASIP:
Paul H. Riss
Chief Executive Officer
Ph:  212-404-7633
phriss@pervasip.com

SOURCE Pervasip Corp.



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