- Revenue increased 34% for the twelve months ended December 31, 2007 compared to the twelve months ended December 31, 2006;
- Revenue decreased 9% for the three months ended December 31, 2007 due to $997,000 of one-time ONT development revenue recorded in the 4th quarter of 2006; excluding this revenue, TXP revenues increased 33% for the three months ended December 31, 2007 compared to the three months ended December 31, 2006
- Signed ONT distribution agreement with FONEX Data Systems
- Partnered with NorthStar Communications Group for retrofit installations
- Successfully reached interoperability with 16 global GPON Optical Line Terminal (OLT) providers
- Hired new Chief Operating Officer and new Controller and appointed new board member
Michael C. Shores, President and Chief Executive Officer of TXP, commented, "TXP continued its momentum during the fourth quarter and we achieved record revenue for the full year. Excluding the one-time ONT development revenue of $997,000 in 2006, revenue growth for the fourth quarter of 2007 was up approximately 33% to approximately $2.8 million versus the fourth quarter of 2006 and our customer base increased to 139 by the end of the fourth quarter of 2007 versus 110 in the fourth quarter of 2006. Our product and service offerings are all about supplying the telecom industry and high technology companies with technological design capabilities that (a) speed time-to-market for their products, (b) are cost effective, and (c) provide superior product innovation. We believe that our commitment to exceed o ur clients' expectations is helping us establish a reputation for quality, as is evidenced by our growing client list, repeat business and partnership agreements with high profile firms."
"On the partnership front, we recently signed a distribution agreement with FONEX Data Systems for the marketing of our Optical Network Terminal (ONT) solutions in Canada and France. FONEX provides telecommunications equipment worldwide and is focused on delivering optimized, purpose-built solutions for wireline and wireless operators. We are excited about this opportunity because our new 7200G family of mini-size, Power-over-Ethernet (POE) Gigabit Passive Optical Network (GPON) ONTs are only one quarter the size of current generation GPON ONTs, which we believe makes them ideally suited for FONEX's customers who are looking for an indoor ONT solution."
"We also partnered with NorthStar Communications Group for our retrofit solutions. We believe that NorthStar excels at delivering custom packaged services to meet the specific needs of carriers as their networks grow. Our retrofit kits enable customers to cost effectively upgrade their local access networks by retrofitting existing outside plant cabinets with new access systems, rather than going through the expensive and time consuming process of completely replacing the cabinets in which the access equipment is housed. TXP's retrofit solutions are typically 60-75% less than the cost of a new cabinet installation. NorthStar plans to add TXP's kits into its resale portfolio, offering customers a fully integrated hybrid solution consisting of products and services providing a seamless upgrade path for ou tside plant cabinet upgrades."
"Our prototype services business unit was the largest contributor to revenue in the fourth quarter of 2007 with approximately $2,000,000 in revenue compared to approximately $2,000,000 in the fourth quarter of 2006. For the fiscal year ended December 31, 2007 our prototype services business unit experienced growth of approximately 38% to approximately $8,525,000 versus approximately $6,202,000 in the fiscal year ended December 31,2006. We feel that our demonstrated ability to offer quick turnaround in prototype design and pre-production services is enabling us to add customers at a rapid pace."
Mr. Shores continued, "Our retrofit solutions, which provide an economically compelling alternative for telecom carriers who must overhaul their local access infrastructures, are also selling well. Revenue in this division increased by approximately 378% in the fourth quarter of 2007 to approximately $578,000 versus the fourth quarter of 2006. For the fiscal year ended December 31, 2007 revenue from our retrofit solutions business increased approximately 35% to approximately $1,387,000."
Mr. Shores continued, "Our ONT group continues to gain traction in the marketplace. ONTs provide the connectivity for "the last mile" enabling integrated voice, video and high-speed internet access in the home or business location. We made our first significant sales in Europe earlier this year and within the U.S. our family of ONTs are now interoperable across 16 OLT providers. We have begun shipping ONT products to three OEM customers after the successful completion of product trials that had been on-going since the latter half of 2007. Sales of Gigabit Passive Optical Network (GPON) ONTs in Europe are particularly strong as the region is quicker to adapt this new technology versus the U.S., however, we are now seeing increased interest in the U.S., as well."
Mr. Shores concluded, "Our customer base has increased from 110 at the end of the fourth quarter of 2006 to over 139 electronics and telecommunications companies in the fourth quarter of 2007. We are excited by the positive feedback and satisfaction level of our customer base and look forward to working with them and our partners in the months and years ahead."
On an annual basis our revenue increased to $11 million or approximately 34% compared to revenues of $8.2 million in 2006. Operating loss for the year ended December 31, 2007 was approximately $6.2 million, compared to operating loss of approximately $1.3 million for the same period last year. Net loss for the year was approximately $8.9 million, or $0.08 per share, compared to a net loss of approximately $4.6 million, or $0.05 per share, for the same period in 2006. The loss from 2007 included non-cash expenses of approximately $3 million including the "change in the fair value of the derivative financial instruments" that was attributable to the increase in the share price at year-end.
TXP Corp. (Nasdaq: TXPO)