Telehop Communications Reports Fourth Quarter 2009 Financial Results

TORONTO, March 17 /CNW/ - Telehop Communications Inc. (TSXV-HOP) ("Telehop" or the "Company") is a full-service long distance provider operating within the telecommunications industry and is registered with the Canadian Radio-television and Telecommunications Commission ("CRTC") as a licensed Class "A" Telecom Carrier.

    
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    Consolidated Highlights              Three months ended   Years ended

    ($Thousands except for          Dec. 31,   Dec. 31,   Dec. 31,   Dec. 31,
     per share data)                   2009       2008       2009       2008
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    Consolidated Income Statement
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    Operating revenues            $   2,970  $   3,777  $  13,398  $  16,384
    Gross margin                      1,165      1,373      5,681      6,127
    Gross margin %                   39.22%     36.35%     42.40%     37.40%

    Net income (loss)                  (913)      (591)    (1,374)    (1,336)
    Earnings (loss) per share -
     basic                            (0.07)     (0.04)     (0.10)     (0.10)
    Earnings (loss) per share -
     diluted                          (0.07)     (0.04)     (0.10)     (0.10)
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Quarterly financial summary -

Revenue for fourth quarter 2009 was $2,970,418 with a net loss of $913,379 or $(0.07) per common share compared to revenue of $3,776,759 and net loss of $591,406 or $(0.04) per common share for the same quarter 2008. The Company reported revenue of $806,341 or 21.35% less quarter for quarter which is attributable to a reduction in our retail long-distance business of $651,703 and a reduction in Telehop's wholesale long-distance business of $154.638. Year-to-date revenue was $13,397,801 with a net loss of $1,374,312 or $(0.10) per common share compared to revenue of $16,384,290 and net loss of $1,335,554 or $(0.10) per common share for 2009.

Telehop reported a gross margin for the fourth quarter of $1,165,108 or 39.22% compared to a $1,372,829 or 36.35% for the same quarter in 2008. This was a result of increased revenue per minute and lower direct costs due to a strengthening of the Canadian dollar relative to the United States dollar. Year-to-date margin has shown a 5% increase to 42.40% over 2008. The Company reported a decrease in operating expenses from $2,278,697 in fourth quarter 2008 by $571,851 or 25.10% to $1,706,846. The majority of the decrease relates cost saving measures implemented in 2009. Year-to-date operating expenses decreased by $1,501,283 to $6,748,755, as the Company continues to reduce operating expenses on an ongoing basis.

A complete financial reporting package is available on Sedar http://www.sedar.com or by contacting the company.

Certain statements in this press release may constitute "forward looking statements" and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any performance or achievement expressed or implied by such "forward looking statements".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

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For further information: Company Contact: Mr. Fulvio Ciano, CEO, [phone], [email protected]