ATLANTA, GA, April 24, 2004 - Ptek Holdings, Inc. (NASDAQ: PTEK), a leading provider of innovative business, data and group communications services, today announced results for the first quarter ended March 31, 2004. Revenues were $105.4 million for the quarter, an 18.1% increase from the first quarter of 2003. Net income from continuing operations grew to $8.7 million in the first quarter of 2004, an increase of 82.5% from $4.8 million in the comparable prior year period. Diluted EPS from continuing operations totaled $0.13 in the first quarter of 2004 compared to $0.09 in the first quarter of 2003.
Revenue at Premiere Conferencing grew 23.7% in the first quarter of 2004, totaling $45.2 million versus $36.6 million in the comparable prior year period. Revenue at Xpedite grew 14.3% during the first quarter of 2004, totaling $60.2 million versus $52.7 million in the first quarter of 2003.
"Our Company continues to perform well," said Boland T. Jones, Founder, Chairman and CEO of Ptek Holdings, Inc. "As a leading provider of high-value, cost-effective solutions for our global enterprise customers, we remain excited about the opportunities we see in the marketplace."
Hosted nearly 420 million minutes of group meetings and delivered more than 790 million data communications during the first quarter
Introduced Fax2Mailsm document management solution and made progress toward our goal of ending this year with greater than 100,000 paid subscribers to the service
Introduced ReadyConference® Plus data collaboration service and made progress toward our goal of ending this year with at least 25,000 users
Increased revenue from transactional and new media deliveries by 32% during the quarter from the comparable prior year period
Increased revenue from Web and Auditorium conferencing services by 84% during the quarter from the first quarter of 2003
Grew international conferencing revenue by more than 80% during the quarter from the comparable prior year period
Repurchased 400,000 shares of Ptek common stock in the open market
Closed the acquisition of Resource Communications, Inc. on April 1, adding to Ptek's presence in the North American SME market for conferencing services
Settled our billing dispute with MCI, subject to any required bankruptcy court approval
The following statements are based on Ptek's current expectations as of April 28, 2004. These statements are forward-looking statements and actual results may differ materially. The Company assumes no duty to update any forward-looking statements made in this press release. A discussion concerning forward-looking statements is included at the end of this press release and in the Company's filings with the Securities and Exchange Commission.
The Company estimates revenues for 2004 will be in the range of $430 million to $440 million and diluted EPS from continuing operations for the year will be in the range of $0.56 to $0.58. Average diluted shares outstanding in 2004 are estimated to be approximately 75 million, and the Company assumes an effective tax rate for the year between 38% and 39%.
The Company will hold a conference call at 5:00 Eastern this afternoon to discuss these results. To participate in the call, please dial-in to the appropriate number below 5-10 minutes prior to the scheduled start time. (800) 818-5264 (US & Canada) or (913) 981-4910 (International). The conference call will be simultaneously broadcast over the Internet via SoundCast®, a Premiere Conferencing service, and can be found at http://www.ptek.com . You may also follow this link for details on the Internet replay and for the text of the earnings release, including the financial and statistical information to be presented in the call.
A replay will be available following the call at 8:00 p.m., through midnight Eastern May 7 and may be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 114497. The Webcast of this call will be archived on the Company's Website at www.ptek.com
About Ptek Holdings, Inc.
Ptek Holdings, Inc. is a leading provider of innovative business, data and group communications services for global enterprises. Companies use our audio and data conferencing solutions to conduct group meetings and presentations over the phone or Web. We also enable our customers to process and deliver large quantities of individualized, business critical information, such as electronic statements and invoices, financial transaction and travel confirmations, and drug prescriptions, via our global ASP platform. Ptek serves companies in nearly every business sector, including healthcare, technology, publishing, financial services, travel and hospitality. Our services are marketed under the Premiere Conferencing and Xpedite® brand names.
Ptek Holdings' corporate headquarters is located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. Additional information can be found at www.ptek.com.
Forward-looking and cautionary statements
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Ptek's forward-looking statements, including, but not limited to, the following factors: technological change; the development of alternatives to our services; our ability to manage our growth; integration of acquired companies; possible adverse effects on our financial condition if we are unable to retain IBM as a customer at the levels currently forecasted; possible adverse results of pending or future litigation or infringement claims; service interruptions; competitive pressures, including pricing pressures; general domestic and international economic, business or political conditions; legislative or regulatory changes; increased financial leverage; our dependence on our subsidiaries for cash flow; and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited the "Risk Factors Affecting Future Pecember 31, 2003. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.