Lattice Announces Third Quarter 2015 Financial Results
Conference Call Today, Monday, November 16 at 2:00 p.m. ET
PENNSAUKEN, NJ--(Marketwired - Nov 16, 2015) - Lattice Incorporated (
Third Quarter Highlights:
- Direct call provisioning revenue increased 27% compared to the third quarter in 2014
- Average revenue per inmate is over $800, versus industry average of $515 per inmate
- Recurring revenues accounted for 68% of total revenue
"Since entering the market in Oklahoma, we've grown to servicing more than 50% of the small and mid-sized correctional facilities we targeted in the State," said Paul Burgess, CEO of Lattice. "We're now leveraging that experience as we embark on a strategy to replicate this success in eight additional markets. We've already obtained certification to provide communications services in five of these eight new states, and we are actively engaged in sales and marketing activities that should lead to improving sales in 2016."
Burgess continued, "Complementing the regional expansion of our services, we're also continuing to evolve our product offering, most recently with the addition of our Video Arraignment solution in the second quarter, and the pending launch of our CellMate™ Mobile platform. We believe we offer the most robust suite of services for the small- to mid-sized correctional facility market, providing a strong competitive position as seek to further grow market share, and we look forward to sharing updates on our continued progress in the months ahead."
Total revenues for the three months ended September 30, 2015 decreased 6% to $1,902,000 from $2,031,000 for the three months ended September 30, 2014. Recurring service revenue, which breaks down into wholesaled services and direct services, accounted for 68% of total revenue in the current quarter, up from 53% in the prior year period. Direct call provisioning revenue increased 27% as we added customers.
Technology product revenues, where Lattice provides wholesaled technology systems embedded with its proprietary software to other service providers, decreased 37% to $607,000. Wholesale technology revenues vary significantly from quarter to quarter.
Gross profit for the three months ended September 30, 2015 decreased to $613,000 from $848,000 in the prior year period. Gross margin, as a percentage of revenues, decreased to 32% from 42% for the same period in 2014. The decrease in percentage is largely attributable to a shift in revenue mix primarily due to the effects of a lower level of wholesaled technology revenue during the quarter compared to the prior year quarter. Technology product revenue accounted for 37% of total revenue compared to 64% in the year ago quarter. The gross margin for wholesaled technology products will vary with larger sales orders, but the Company expects the margins to continue to be in the 60% range on average. Gross profit as a percentage of revenues for service revenues was consistent with prior year levels, at approximately 30%.
Additional information may be found in the Company's 10-Q filing with the U.S. Securities and Exchange Commission.
Lattice will hold a conference call today, November 16, with CEO Paul Burgess and CFO Joseph Noto, at 2:00 p.m. Eastern time (11:00 a.m. Pacific).
To participate in the call, please dial (888) 572-7033, or (719) 457-2648 for international calls, approximately 10 minutes prior to the scheduled start time. Conference ID: 7174079
A replay of the call will be available for two weeks from 5:00 p.m. ET on November 16, 2015, until 11:59 p.m. ET on November 30, 2015. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the passcode for the replay is 7174079. In addition, a recording of the call will be available at http://www.redchip.com/company/home/LTTC for one year.
About Lattice Incorporated
Lattice is a provider of inmate management and communications solutions that improve efficiency, reduce administrative burden, and deliver recurring revenue opportunities for corrections facilities globally. Lattice's Corrections Operating Platform™ (COP) is comprised of innovative, highly secure solutions including phone systems, prepaid calling options, voicemail, on-site and remote video visitation and arraignment, point-of-sale kiosks, e-mail, text messaging, and social media. COP's inmate management module efficiently manages prison processes, including communications monitoring, commissary purchases, account funding and billing, biometrics, booking, incident reporting, and more. For more information, visit http://www.latticeinc.com.
Safe Harbor Statement
Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the risk factors disclosed in the Company's periodic reports filed with the SEC. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk factors disclosed in the company's Forms 10-Q previously filed with the SEC.
RedChip Companies, Inc.
Tel: +1-800-733-2447, ext. 107
Director of Marketing
Tel: +1-856-910-1166, x2113