TelePlus stumbles in Q2

Wireless and telecom reseller TelePlus World Corp. reported weaker second quarter results, which the company said were due to switching back-office providers and the backlash from acquiring mobile virtual network operator Liberty Wireless.
TelePlus, which operates in the U.S. and Canada, earned second quarter revenues of $5.3 million, down from the $6.4 million that it earned in the prior year’s second quarter. Operating income fell into the red, with a loss of about $530,000 compared to income of $222,300 the previous year. Overall, TelePlus almost broke even for the quarter, with a net loss of about $13,000. The company had generated profits of about $2 million during the second quarter of 2006, but had lost about $2.3 million in the first quarter of this year.
CEO Marius Silvasan said that the results reflected a transition to a new back-office provider to support TelePlus’ wireless operations.
“This migration was key to reestablishing growth in our wireless business,” he said. The previous system, he added “was costly and lacked the flexibility required to allow us to grow our wireless subscriber base.”
Silvasan also said that the decrease in revenue during the second quarter of this year “reflects the initial loss of wireless customers post-acquisition of Liberty Wireless and prior to our integration of that business.”
He noted that TelePlus had also been facing impacts from “various non-cash items which decreased our profitability but are not tied to operating results,” such as debt, and that the company would continue to evaluate opportunities to refinance.