Elephant Talk Communications Provides Guidance for New Netherlands & Spain Agreements
- $6 Million of New Revenue for Q3 & Q4 of 2009
- Growing to $24 Million of Additional Revenue in 2010
- Gross Margins Expected to Reach 40%
SCHIPHOL, Netherlands, July 13 /PRNewswire-FirstCall/ --Elephant Talk Communications, Inc. (OTC Bulletin Board: ETAK - News), an international telecom and multimedia content distributor, specializing in carrier grade mobile delivery platforms, today announced revenue guidance pertaining to contracts recently signed in the Netherlands and Spain. These agreements are expected to generate revenues in excess of $6 million in the 2nd half of 2009 and over $24 million in 2010. The contracts are a result of Elephant Talk's relationships with Vizzavi Espana, a Vodafone Group Company, and T-Mobile Netherlands B.V and represent a new revenue stream for the Company above the trailing twelve months revenue of approximately $42 million.
"We are extremely pleased to provide guidance of over $45 million in the next 2 years of working with both Vizzavi Espana and T-Mobile Netherlands," stated Steven van der Velden, Chief Executive Officer of Elephant Talk Communications. "Management expects that we will achieve an average of 40% gross margins on the services we are providing under our contracts with both groups. It is important to recognize that this data represents only two of Elephant Talk's potentially many international markets. These contracts mark Elephants Talk's entry into the mobile communications market. The Company has invested in excess of $30 million in the ET Boss software operating platform and related mobile capabilities and is now poised to generate a return on its investment."
It is estimated that there will be 6-7 billion mobile handsets in use within the next five years. In most mature markets, on average, nearly 10-12% of all handsets are currently marketed by virtual operators. These projections would result in a global marketplace of potentially 700 million handheld devices that Elephant Talk could help serve as referenced by GlobalComms Insight. With average annual revenue of $150 per user, this would result in a worldwide mobile market for virtual operators that will exceed $100 billion a year.
"The ET Boss software platform has enabled us to secure these major new agreements and we believe that with our new product offerings we can focus on attracting additional contracts that will assist us in capturing market share from the competition, while increasing our geographic footprint," stated, Mr. van der Velden. "This will help us achieve our primary goal of increasing shareholder value through increased earnings."
About Elephant Talk Communications
Elephant Talk Communications is positioning itself as an international telecom operator and enabler to the multimedia industry by facilitating the distribution of all forms of content as well as mobile and fixed telecom services to global telecommunications consumers. The Company provides traditional telecom services, media streaming, and distribution services primarily to the business-to-business (B2B) community within the telecommunications market where it has a presence. The Company's global footprint as a fully licensed carrier, supported by its propriety IN (Intelligent Network) and Billing/CRM (Client Relationship Management) Systems, has been designed to offer cutting-edge solutions to the increasingly competitive global multimedia industry. Elephant Talk's telecommunications platform eliminates the usual limitations caused by national borders, networks, devices or media and, therefore, enables its B2B customers to operate as independent telecom and multimedia distribution organizations. Elephant Talk is also a developer for mobile telecom and content distribution solutions; and, as a Mobile Virtual Network Enabler (MVNE), the company has positioned itself as the premier outsourcing partner for both Mobile Network Operators (MNO's) as well as for Mobile Virtual Network Operators (MVNO's). At the same time, Elephant Talk assists its MNO partners to more efficiently provide a broad range of sophisticated services to their own existing base of MVNO's. Elephant Talk is positioning itself as the preferred MVNE partner of the larger, global Mobile Operators and currently operates sophisticated networks in over a dozen markets in Europe, Asia Pacific, and the Middle East. The Company was ranked fifth on the Orange County 2008 Deloitte Technology Fast 50. For more information, visit: www.elephanttalk.com.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.