/EIN News/ -- Gaithersburg, MD, Feb. 19, 2020 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC: XDSL) (“mPhase” or the “Company”) today reported record financial results for its second fiscal 2020 quarter and six-month period ended December 31, 2019. In conjunction with this release, the Company is also providing additional details on its business initiatives for the remainder of fiscal 2020. For Q2/2020, management is noting the following items of importance:

• Revenue set a Q2 company record of $7.6 million, compared to zero revenue reported in Q2/2019;
• Reflecting the recurring nature of our current revenue sources, sequential Q2/2020 quarter-over-quarter revenue was almost identical to the prior quarter ($7.6 million in Q1/2020);
• Gross profit margin was 25.6%, approximately 100 basis-points higher than the prior quarter;
• Non-cash stock-based compensation related to CEO and CFO awards represented $6.4 million of total operating expenses for Q2/2020 and represents the final significant warrant-related charge during fiscal 2020;
• Excluding non-cash stock-based compensation expense related to the Company’s CEO and CFO awards, proforma net income from continuing operations was approximately $428,000 during Q2/2020;
• Software development costs of $0.9 million represented a 24.7% improvement over the prior quarter, as the company continues to reduce its use of consultant developers while it builds out its experienced internal team;
• Revenue mix consisted of 82% subscription, 11% service and support, and 7% application development and implementation

“This quarter was steady and predictable, two great attributes while we build out the other elements of our business,” said mPhase CEO Anshu Bhatnagar. “We are tracking well to our initial forecast of a $30 million annual run rate, so this first source of recurring revenue is creating a strong foundation for the rest of our strategic plan. We spent the later part of 2019 aggressively expanding our operations, so the benefits of those efforts will continue to be seen in future quarters.”

Accomplishments and goals for 2020:

• We are growing, with 81 full-time employees (including 6 interns) and 10+ contracted resources, giving us impressive scale as we identify new partnerships and new business;
• We are expanding, with three offices in India - Kolkata, Mumbai, and Bangalore;
• Travel Buddhi completed its B2B launch and is making inroads with a diverse customer set that includes both travel entrepreneurs and traditional travel agents;
• Travel Buddhi is spreading its geographic reach, with content now covering 300 destinations in 41 countries, and 300,000+ data points from 15,000 scraps (attractions, restaurants and shopping venues);
• Potential partners are taking notice with the most recent partnership with Hotelbeds (the world's leading Bedbank);
• We are finalizing the up-list requirements to the OTCQB

“Our first few quarters were about building infrastructure and exploring new opportunities. From a financial perspective, we’ve finally worked through the large non-cash charges that have obscured our progress in recent financial results, so future quarters will begin to show fairly dramatic bottom-line improvement,” said CEO Bhatnagar. “We expect our core learning-related business to continue to grow, but we are equally excited about other initiatives. We are advancing discussions with operating entities that fit well with our expertise in the data capture/analysis space, a testament to our growing attractiveness as a highly-skilled partner. We now have the level of organizational scale that will allow us to pursue larger and more impactful business. The second phase of the Travel Buddhi roll out is also going well, with steady geographic expansion planned throughout 2020. We are also on track to begin layering on additional revenue growth during 2020 and will update our forecast accordingly as each new source of growth goes live.”

About mPhase Technologies, Inc.

mPhase is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. The Company is assembling industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com. Please follow us on twitter: @mPhase_Tech for the latest updates.

Safe Harbor Statement

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Contacts:

Investor Contact:
ir@mphasetech.com