Fusion Reports Fourth Quarter And Full Year 2009 Results

NEW YORK, March 25 /PRNewswire-FirstCall/ --  Fusion (OTC Bulletin Board: FSNN) today announced financial results for the quarter and full year ended December 31, 2009. All figures cited exclude the impact of the former consumer business segment, which has been reclassified to discontinued operations.

Fusion reported Consolidated Revenues of $40.9 million and $11.4 million for the year and quarter ended December 31, 2009, respectively.  This represented a decrease in Consolidated Revenues of 17.4% and 10.9% when compared to revenues of $49.5 million and $12.8 million for the year and quarter ended December 31, 2008. The decrease over the prior year was primarily attributable to a decrease in Carrier Services business segment revenues due to lower traffic volumes resulting from the challenging economic environment, constraints on resources resulting from the Company’s focus during the year on its restructuring and exiting the consumer business, limitations on the Company’s ability to offer extended payment terms to large customers due to its cash position, and normally expected variations in traffic.

Although overall revenues were lower than anticipated, due to the reasons indicated above, Consolidated Gross Margin increased significantly to 8.3% for the full year and 10.2% for the fourth quarter of 2009 compared to 6.2% for the full year and 5.9% for the fourth quarter of 2008. The increase in Consolidated Gross Margin is a result of stronger gross margins in the Carrier Services business segment, as well as an increased contribution from the higher margin Corporate Services business segment, which achieved a gross margin for the fourth quarter and full year 2009 of 36.2% and 36.1% respectively.

In addition, despite lower revenues for the Carrier Services business segment, fourth quarter revenues for the Corporate Services business segment increased by 212% when comparing 2009 to 2008 and by 180% when comparing to the fourth quarter of 2009 to the fourth quarter of 2008. The fourth quarter was our eighth successive quarter of growth in both revenue and margin for the Corporate Services business segment.