Published in
M2 PressWIRE
on Friday, 09 May 2008 at
17:59 GMT
Copyright (C) 2008, M2 Communications Ltd.
Streetinvesting.com has now resumed our progressive Axesstel Inc. (AMEX:AFT) as it fell down $0.01 nearing its 52 week low of $0.19 on over 110,000 almost three times its average volume early trading Friday, May 9, 2008. Based on the Company's most recent news release; we will be progressively reviewing the impact of the markets and the effects of their developments. We will be providing updates and analyst opinions as new stories unfold.
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Our research resources have been aimed towards the US Large Caps and the various prospective companies therein Axesstel Inc. was among those that we have been closely examining due to their recent news and trading patterns. Sign up at www, streetinvesting.com for more information on the company mentioned herein.
May 9, 2008, -- Axesstel, Inc. announced the staff of the American Stock Exchange (Amex) notified Axesstel that Amex has accepted Axesstel's plan to regain compliance with Amex's continued listing standards.
As previously announced, on March 5, 2008, Axesstel received notice from Amex indicating Axesstel was not in compliance with Section 1003(a)(i) and Section 1003(a)(ii) of the Amex Company Guide. Specifically, Amex staff noted Axesstel's stockholder's equity was less than $2,000,000 and losses from continuing operations and/or net losses were incurred in two out of the three most recent fiscal years, and that Axesstel's stockholder's equity was less than $4,000,000 and losses from continuing operations and net losses were incurred in three out of the four most recent fiscal years. In response, on April 7, 2008, Axesstel submitted a plan of compliance to Amex. The plan of compliance outlined the actions Axesstel is taking to increase its profitability.
On May 2, 2008, Axesstel reported first quarter 2008 financial results demonstrating significant improvements over first quarter 2007 and fourth quarter 2007. First quarter of 2008 revenues were $24.6 million, including data products revenue of $13.6 million. This compares to first quarter of 2007 revenues of $25.2 million, including $5.1 million from data products, and fourth quarter of 2007 revenues of $13.8 million, including data products revenue of $9.2 million. Gross margin for the first quarter of 2008 was $6.6 million, or a record 27 percent of revenue, compared to $4.6 million, or 18 percent of revenue, for the same period last year and $2.9 million, or 21 percent of revenue, for the prior quarter. Net income for the first quarter of 2008 was $257,000 or $0.01 per diluted share, compared to a net loss of $1.2 million or $0.05 per share for the first quarter of 2007 and a net loss of $5.0 million or $0.22 per share for the fourth quarter of 2007.
On May 5, 2008, Amex notified Axesstel that Amex accepted the plan of compliance as it made a reasonable demonstration of Axesstel's ability to regain compliance with the continued listing standards by September 7, 2009. Accordingly, Axesstel was granted an extension until September 7, 2009 to regain compliance with the continued listing standards.
Axesstel is not currently in compliance with Amex continued listing standards and its listing on Amex is being continued pursuant to the extension granted following Amex's review of the plan of compliance discussed above. Axesstel will be subject to periodic review by Amex during the extension period. Continued listing on Amex is dependent upon making progress consistent with the plan of compliance or in regaining compliance with the continued listing standards by the end of the extension period.
Axesstel (AMEX:AFT - News) is a recognized industry leader in the design and development of fixed wireless voice and broadband data products. Axesstel's best in class product portfolio includes wireless web computers, broadband modems, 3G gateways, voice/data terminals, fixed wireless desktop phones and public call office phones for access to online computing, high-speed data and voice calling services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California with a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.
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Release date: 09 May 2008
