EasyLink Services International Corporation
Announces Fiscal Third Quarter 2010 Financial
Results
Generates $3.3 Million in Operating Income
June 03, 2010 04:33 PM Eastern Daylight Time
NORCROSS, Ga.--(EON: Enhanced Online News)--EasyLink Services International Corporation ("EasyLink" or
"Company") (NasdaqCM: ESIC, www.easylink.com), a global provider of comprehensive messaging services and
e-commerce solutions, reported fiscal third quarter 2010 revenue of approximately $20.6 million, operating income
of approximately $3.3 million, net income of approximately $2 million, earnings per share of $.06 per share, and
adjusted earnings before income taxes, depreciation and amortization (“Adjusted EBITDA”) of approximately $5.9
million.
“I am extremely proud of the results turned in by the EasyLink team this quarter,” said Tom Stallings, CEO of
EasyLink. “We continue to operate in a turbulent worldwide business environment and yet our team held our
revenues steady while reducing our costs and expenses resulting in 28.5% Adjusted EBITDA margins.”
Financial Review
Revenue for the third quarter of fiscal 2010 was approximately $20.6 million compared to $21 million in the third
quarter of fiscal 2009. We experienced another quarter of growth in our enterprise fax business, but overall revenue
slightly declined due to lower volumes in our telex and other messaging services businesses. Gross margin was
73.2% in the third quarter of 2010 which is compared to 69.1% in the third quarter of fiscal 2009. Gross margins
are expected to remain in the 70% to 72% range for the rest of the fiscal year.
Total revenue for the nine-month period ended April 30, 2010 was approximately $61.5 million compared to
approximately $64.7 million for the first nine months of fiscal 2009. The absence of recessionary affect on revenue in
the first quarter of fiscal 2009 combined with the continuing reduction in telex volumes contributed to the year-over-
year decline in revenue. Gross margin for the nine months was 71