EasyLink Services International Corporation Announces Fiscal First Quarter 2011 Financial Results

NORCROSS, Ga., Dec. 13, 2010 (GLOBE NEWSWIRE) -- EasyLink Services International Corporation ("EasyLink" or "Company") (Nasdaq:ESIC) ( www.easylink.com ), a global provider of comprehensive messaging services and e-commerce solutions, reported fiscal first quarter 2011 revenue of approximately $22.7 million, operating income of approximately $2.1 million, net income of approximately $967,000 and earnings per share of $.03 per share.

"We are very excited about our first quarter results and what the future holds for the new EasyLink," said Tom Stallings, CEO of EasyLink. "Even with the inclusion of $2 million in deal expenses from the Xpedite acquisition, our team generated $4.85 million in Adjusted EBITDA for the quarter."

Financial Review

Revenue for the first quarter of fiscal 2011 was approximately $22.7 million compared to $20.5 million in the first quarter of fiscal 2010, which includes ten days of operations for the newly acquired Xpedite entities. Gross margin was 71.0% in the first quarter of 2011 which is compared to 70.3% in the first quarter of fiscal 2010.  Gross margins are expected to remain in the 70% to 72% range for the rest of the fiscal year.

On Demand Messaging revenue for the first quarter of fiscal 2011, which includes fax, production messaging, document capture and management and e-mail services, was approximately $13.0 million compared to approximately $9.9 million in the first quarter of fiscal 2010. On Demand Messaging represented 57% of total revenue.

Supply Chain Messaging revenue for the first quarter of fiscal 2011, which includes electronic data interchange ("EDI") products and services and telex, was approximately $9.8 million compared to approximately $10.6 million in the first quarter of fiscal 2010. Supply Chain Messaging decreased on a year-over-year basis primarily as the result of declining telex revenue. This trend is expected to continue for the rest of fiscal 2011. Supply Chain Messaging in the first quarter represented 43% of total revenue.