FRIENDSWOOD, TX--(Marketwire - Mar 27, 2013) - Data Call Technologies, Inc. (
The year ended with a promising forecast of the direction the company is to travel into 2013. Extreme focus was placed in 2012 on the company's path to profitability as Data Call pressed to navigate through an anticipated difficult year. As the company continued to maintain its current core business, the DataCallQ mobile product was launched with unfavorable results. As a result of the poor acceptance of this product, the company quickly terminated the DataCallQ product, eliminating the recurring expense of supporting the product. With efforts quickly redirected to the expansion of the company's core products, the company was able to grow its customer base in the last half of 2012 creating a refreshing change in the company's momentum.
The audited financial results are quite bold in 2012 compared to the audited results of the previous year. One must note, the year's results are also significantly impacted by the mobile project development cost overruns, combined with the expenses relative to that product launch.
Summary of significant events of the quarter
- Termination/Suspension of DataCallQ mobile project
- Maintaining and upselling services with regular clients
- Significant new clients being added.
The Company had $556,363 of sales revenue for the year ended December 31, 2012, compared to sales revenue of $548,689 for the year ended December 31, 2011, an increase in sales revenue of $7,674 or 1.3% from the prior period.
The Company had total costs of sales for the year ended December 31, 2012 of $116,045 compared to total costs of sales of $121,297 for the year ended December 31, 2011, which resulted in a gross margin of $440,318 for the year ended December 31, 2012, compared to a gross margin of $427,392 for the year ended December 31, 2011, an increase in gross margin of $12,925 from the prior year.
Cost of sales as a percentage of sales was 20.9% for the year ended December 31, 2012, compared to 22.1% for the year ended December 31, 2011. As the company gains more customers and enter into more service agreements, they anticipate the cost of sales will decrease further as they expect to take advantage of applicable economies of scale which reduced their expenses of $431,923 for the year ended December 31, 2012, compared to total expenses of $536,701 for the year ended December 31, 2011, a decrease in expenses of $104,778 or 19.5% from the prior period. The decrease in expenses was mainly due to decrease in employee compensation, decrease in deferred stock based compensation and decrease in advertising and marketing expenses.
Data Call had a net profit of $8,395 for the year ended December 31, 2012, compared to a net loss of $109,309 for the year ended December 31, 2011.
"With the last few years being probably some of the company's most challenging, I am proud to put them behind us with the latest changes that Data Call has weathered. We have continued the commitment to not only put in place cost cutting measures to increase our bottom line, but to adhere to and enforce these measures consistently. The knowledge this company has acquired through its experiences and relationships, which were nurtured in this still young and ever growing industry, are irreplaceable. Data Call's blending of that combination is now being monetized. Interestingly as well, we are seeing yet another convergence in the technology, the companies, and the people that drive this industry -- we still remain on the front of that wave of ingenuity. We will continue to widen our customer base, while exploring new opportunities and keeping true to our integrity. I proudly look forward to and welcome the rest of 2013 as our stance is solid as is our team of professionals," stated Tim Vance, the Company's CEO and acting Chairman.
About Data Call Technologies, Inc.
Data Call's information (infotainment) feeds can be viewed throughout digital signage networks in numerous venues from gas stations, airports, sports arenas, banks, clinics, car dealers, manufacturing plants, the list goes on and on -- from luxury condo information systems and elevators, to electronic digital billboards and video walls. Data Call provides it. These feeds range from entertainment content such as historical factoids to relevant news items, sports scores, weather, flight, and traffic information.
Statements contained herein, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, demand and acceptance of new or existing businesses, capital resources and future financial results are "forward-looking" statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, government regulation, taxation, spending, competition, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. There may be other factors not mentioned above that may cause actual results to differ materially from any forward-looking information. The company takes no obligation to update or correct forward-looking statements and takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.