LIMERICK, IRELAND — (Marketwired) — 08/09/16 — (NASDAQ: OHGI), a leading carrier-grade VoIP solution for mobile providers and smartphones, today announced its financial results for the second quarter and six month period ended June 30, 2016.
Brian Collins, CEO of One Horizon Group, stated, “We are not only proud of our ability to increase revenue year-over-year during the second quarter and first six months of 2016, but also in our ability to invest in ourselves. Our disruptive, proprietary VoIP technology continues to evolve with unique offerings such as global data-roaming SIM cards, cashless payment offerings, and prepaid call and messaging bundles with automatic renewals. We are having active discussions with leading carriers in Latin America, Africa and Asia as well as expanding our service offerings to Smart Communications who have licensed our technology. Coupled with the growth we are experiencing in China through Aishuo, which now has over 37 million downloads, we are well positioned for continued subscriber and financial growth.”
Business-to-consumer (–B2C–) mobile VoIP application in China, , has surpassed 37 million subscriber downloads. Aishuo allows consumers to talk and SMS application-to-application for free and call or text a landline or mobile phone, home or abroad, for a nominal cost. Because Aishuo consumes 10x less mobile data and 8x less battery life than any other mobile VoIP technology available today, the voice quality is better as compared to other OTT solutions.
Additionally, Aishuo has teamed up with significant amount of global data-roaming SIM cards to offer consumers a direct, inside-Aishuo-app purchase of a SIM card that is delivered to your door before you leave on vacation. Simple to use, easy to pay for, and greatly reduces customers– mobile communication charges when traveling. We believe this is a unique and powerful combination for the Chinese travelers.
One Horizon has sold its second software license for its data roaming VoIP solution, branded Marino All Abroad, specifically targeting seafarers with a higher estimated ARPU due to the longevity of their travels. The service is offered through Smart Communications, the Philippines– leading wireless service provider with an estimated 55 million prepaid subscribers.
Being offered first through Smart Communications, the Company has released a new cashless payment service for mobile operators to allow users to purchase call credit using their debt or credit card.
One Horizon has released new software that allows app users to purchase packages of minutes and messages for a period and automatically renew their package subscription when it expires.
Revenue for the three months ended June 30, 2016 was approximately $366,000 as compared to approximately $108,000 for the three months ended June 30, 2015, an increase of approximately $258,000, or 238.8%. The increase was primarily due to the growth in the business in the B2C business in China and the B2B business in the rest of Asia. Management believes further growth in both sectors of revenue and particularly the B2B sector with the launch of “Roam Like Home” software for Telecommunication companies will occur.
Cost of revenue excluding amortization of software development costs, was approximately $49,000 or 13.3% of sales for the three months ended June 30, 2016, compared to cost of revenue of $47,000 or 43.5% of sales for the three months ended June 30, 2015.
Gross profit (excluding the Amortization of software development costs) for the three months ended June 30, 2016 was approximately $317,000 as compared to $61,000 for the three months ended June 30, 2015, an increase of approximately 419.7%. The significant increase was mainly due to the increased revenue.
Operating expenses, including general and administrative expenses, depreciation and research and development were approximately $1,079,000 and $745,000 during the three months ended June 30, 2016 and 2015, respectively. The increase was primarily due to additional research and development costs expensed and other non-cash items expensed in General and administrative costs.
Loss before taxes for the three months ended June 30, 2016 was approximately $1,429,000 as compared to net loss of approximately $1,624,000 for the same period in 2015. The decrease in loss was primarily due to an increase in revenue mentioned above. Management believes the net loss will decrease and eventually become net income going forward with our growth in the business in Asia and also elsewhere in the world.
Net Loss for the second quarter of 2016 was approximately $1.4 million as compared to loss of approximately $1.6 million for the same period in 2015.
Revenue for the six months ended June 30, 2016 was approximately $975,000 as compared to approximately $853,000 for the six months ended June 30, 2015, an increase of approximately $122,000, or 14.3%.
Cost of revenue excluding amortization of software development costs, was approximately $75,000 or 7.7% of sales for the six months ended June 30, 2016, compared to cost of revenue of $108,000 or 12.7% of sales for the six months ended June 30, 2015.
Gross profit (excluding the Amortization of software development costs) for the six months ended June 30, 2016 was approximately $900,000 as compared to $745,000 for the six months ended June 30, 2015, an increase of approximately $155,000 or 20.8%.
Operating expenses, including general and administrative expenses, depreciation and research and development were approximately $2.2 million and $1.9 million during the six months ended June 30, 2016 and 2015, respectively.
Net Loss for the nine months ended June 30, 2016 was approximately $2.7 million as compared to loss of approximately $2.5 million for the same period in 2015.
One Horizon Group, Inc. (NASDAQ: OHGI) a leading developer and operator of carrier-grade optimized VoIP solutions for mobile telcos and enterprises. The company currently services over 37 million subscribers across 20 licensed brands worldwide. The technology is one of the world–s most bandwidth-efficient mobile VoIP, messaging and advertising platforms for smartphones. Founded in 2012, the Company now has operations in Ireland, Switzerland, the United Kingdom, China, India, Singapore, Hong Kong and Latin America. For more information on the Company please visit
This news release may contain “forward-looking” statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company–s products, as well as additional risks and uncertainties that are identified and described in Company–s SEC reports. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
Capital Markets Group, LLC
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