ACT Teleconferencing announces year end 2002 results
Announcement posted by ACT Teleconferencing 01 Apr 2003
Revenues grow 17% and share price jumps 25% as more global enterprises seek to address inter-office communications using videoconferencing technology
ACT Teleconferencing, Inc. (Nasdaq-ACTT), a leading independent worldwide provider of audio, video, data and web-based conferencing products and services, has announced results for the fourth quarter and year ending December 31, 2002.
Peter Eeles, Asia Pacific Managing Director, ACT Teleconferencing, said, In the Asia Pacific area, we are experiencing a steady increasing demand for our video and audio conferencing services with revenues continuing to grow at double digits.
Globally, revenues grew by 17 per cent to US$14.7 million for the fourth quarter of 2002 and by 15 per cent to US$53.8 million for the year ended December 31, 2002, as compared to the same periods in 2001. The share price jumped 25 per cent on the news. The company continues to make steady progress in reducing costs and improving volumes, efficiency and productivity.
In Asia Pacific, the transition of ACTs product mix from fully-attended audio conferencing to ACTs automated service (ReadyConnectSM) continued through 2002, with the division experiencing dramatically increased volume growth in this sector. Lower prices accompanied the transition to automated conferencing, and consequently lowered the revenue growth rate for the year.
Despite this lower growth rate, we are now achieving higher gross margins from automated services due to lower operating costs, said Eeles. We believe the automated market still has significant growth ahead of it, and we intend to continue growing these revenues in the future. Saying this, we remain very focused on our high touch attended conferencing solutions for specialist applications, such as education and company announcements.
In the area of videoconferencing, Eeles maintains the biggest challenge continues to be reducing excess network and operating costs. We were quite successful this year in eliminating excess network costs, although more work remains to be done in 2003, he said.
Eeles concluded that the outlook for 2003 offered genuine opportunities for the Asia Pacific region. We have one of the broadest product offerings in a growing teleconferencing market, a global presence combined with the AT&T outsource contract and one of the lowest cost operators relative to competitors, Eeles said. Against these opportunities, we need to balance the risks of high revenue concentration, industry pricing pressure, and our ability to maintain the highest quality of service in the face of potentially staggering volume increases.
For full details of 2003 results go to http://www.acttel.com/site/1/press_263.htm.
-ENDS
About ACT Teleconferencing
ACT Teleconferencing, Inc. (Nasdaq-ACTT) is a leading independent worldwide provider of audio, video and web-based conferencing products and services. Established in 1990, ACT Teleconferencing provides unmatched coverage around the world with 15 service delivery centres and sales offices in nine countries.
ACT is the only conferencing company with integrated global audio and video conferencing platforms that provide uniform international services, uniform billing and local language services.
ACT's comprehensive suite of applications enable organisations to collaborate with customers, team members, investors and employees locally as well as globally for increased productivity, lower travel expenses and more efficient communications. ACT technology and custom-built applications enable organisations to reach their communication goals around the globe with ease.
For the third year in a row, ACT has been named to Deloitte & Touches Fast 500 program, a ranking of the 500 fastest growing technology companies sin the USA.
ACT Teleconferencing clients in Australia include Compaq, National Meat Federation, ABN Amro, University of Queensland, CSR, AMP, Woolworths, Westfields, Lend Lease, Ernst & Young, Arnotts and KPMG.
For more information about ACT Teleconferencing visit the company's website at www.acttel.com
Peter Eeles, Asia Pacific Managing Director, ACT Teleconferencing, said, In the Asia Pacific area, we are experiencing a steady increasing demand for our video and audio conferencing services with revenues continuing to grow at double digits.
Globally, revenues grew by 17 per cent to US$14.7 million for the fourth quarter of 2002 and by 15 per cent to US$53.8 million for the year ended December 31, 2002, as compared to the same periods in 2001. The share price jumped 25 per cent on the news. The company continues to make steady progress in reducing costs and improving volumes, efficiency and productivity.
In Asia Pacific, the transition of ACTs product mix from fully-attended audio conferencing to ACTs automated service (ReadyConnectSM) continued through 2002, with the division experiencing dramatically increased volume growth in this sector. Lower prices accompanied the transition to automated conferencing, and consequently lowered the revenue growth rate for the year.
Despite this lower growth rate, we are now achieving higher gross margins from automated services due to lower operating costs, said Eeles. We believe the automated market still has significant growth ahead of it, and we intend to continue growing these revenues in the future. Saying this, we remain very focused on our high touch attended conferencing solutions for specialist applications, such as education and company announcements.
In the area of videoconferencing, Eeles maintains the biggest challenge continues to be reducing excess network and operating costs. We were quite successful this year in eliminating excess network costs, although more work remains to be done in 2003, he said.
Eeles concluded that the outlook for 2003 offered genuine opportunities for the Asia Pacific region. We have one of the broadest product offerings in a growing teleconferencing market, a global presence combined with the AT&T outsource contract and one of the lowest cost operators relative to competitors, Eeles said. Against these opportunities, we need to balance the risks of high revenue concentration, industry pricing pressure, and our ability to maintain the highest quality of service in the face of potentially staggering volume increases.
For full details of 2003 results go to http://www.acttel.com/site/1/press_263.htm.
-ENDS
About ACT Teleconferencing
ACT Teleconferencing, Inc. (Nasdaq-ACTT) is a leading independent worldwide provider of audio, video and web-based conferencing products and services. Established in 1990, ACT Teleconferencing provides unmatched coverage around the world with 15 service delivery centres and sales offices in nine countries.
ACT is the only conferencing company with integrated global audio and video conferencing platforms that provide uniform international services, uniform billing and local language services.
ACT's comprehensive suite of applications enable organisations to collaborate with customers, team members, investors and employees locally as well as globally for increased productivity, lower travel expenses and more efficient communications. ACT technology and custom-built applications enable organisations to reach their communication goals around the globe with ease.
For the third year in a row, ACT has been named to Deloitte & Touches Fast 500 program, a ranking of the 500 fastest growing technology companies sin the USA.
ACT Teleconferencing clients in Australia include Compaq, National Meat Federation, ABN Amro, University of Queensland, CSR, AMP, Woolworths, Westfields, Lend Lease, Ernst & Young, Arnotts and KPMG.
For more information about ACT Teleconferencing visit the company's website at www.acttel.com