WHITE PLAINS, N.Y., March 18, 2013 /PRNewswire/ -- Pervasip Corp. (OTCQB:PVSP).
Summary of Recent Accomplishments:
- Gross margin of 55% for fiscal 2012 compared to 41% in prior year
- Net income of $3.2 million in fiscal 2012 compared to a net loss of $4.4 million in the prior fiscal year
- Fiscal 2012 earnings of $0.02 per share basic; $0.01 per share diluted
- $6.9 million in debt reduction for the year
- Launch of Android mobile app for video calling
- Establishment of beta site for downloads of iPhone app
- Execution of new debt modification agreement with secured lenders
Pervasip Corp. (the "Company"), a cloud-based voice and video communications solutions, apps and services provider, today reported earnings for the year ended November 30, 2012.
Net income for the year ended November 30, 2012 was $3,173,931, or $0.02 per basic share and $0.01 per diluted share, compared to a net loss of ($4,449,884), or ($0.10) per share, in the fiscal year ended November 30, 2011.
The Company's gross profit percentage improved by 14 percentage points to 55%, for the year ended November 30, 2012, from 41% for the year ended November 30, 2011.
Pervasip's CEO, Paul Riss, noted, "We are excited about our business model, our product and the debt reduction that we have achieved. With our focus on mobile voice and video services, we believe we can attain rapid growth without extensive working capital needs because any user who buys our service is required to pay in advance via a credit card or PayPal. Since we are selling a digital product that we instantaneously deliver, we are potentially capable of selling thousands of apps each day with the right marketing."
The Company reported a decrease in debt from $14,727,316 at November 30, 2011 to $7,803,104 at November 30, 2012. Interest expense decreased in by approximately $1,382,000 to approximately $2,196,000 for the year ended November 30, 2012 as compared to approximately $3,578,000 for the prior fiscal year.
In addition to the debt reductions in fiscal 2012, the Company has eliminated approximately $5,000,000 in debt in fiscal 2013 with debt settlement agreements. With a final payment of $100,000, the Company will eliminate approximately $1.8 million in additional debt from its secured lenders, and will have significantly improved its balance sheet again.
"We are pleased with our debt settlement agreements and we believe it is just a matter of time before our app goes viral," continued Riss. "As more people find the VoX app, which now includes free video calling between VoX subscribers, we frequently see a rapid increase in downloads, installs and minutes of use."
The VoX Mobile app can be downloaded directly from the Google Play store at https://play.google.com/store/apps/details?id=net.voxcorp. The VoX Mobile Video Plug-in is also available from Google Play at the same web page.
For additional disclosure regarding operating results, refer to the Annual Report on Form 10-K for the year November 30, 2012, which has been filed with the Securities and Exchange Commission.
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 is expected to approach 300 million users by the end of 2013. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. For more information, please visit www.voxcorp.net.
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.
For further information:
Paul H. Riss
Chief Executive Officer
SOURCE Pervasip Corp.