LIMERICK, IRELAND — (Marketwired) — 04/11/17 — (NASDAQ: OHGI), the award winning(1) mobile VoIP software provider for telecommunications operators, today announced its financial results for the year ending December 31, 2016.
Brian Collins, CEO of One Horizon Group, commented, “Looking back on 2016, it was a year of investment for One Horizon Group as we prepared to go live globally with our proprietary VoIP technology. During the second quarter of 2016, we did so successfully with Smart Communications in the Philippines, who has over 55 million pre-paid subscribers. Today, we are live in seven emerging markets, not only validating our technology that is solving a global problem, but also bringing an additional revenue stream for the carrier and a cost effective way for the user to call home even in 2G and 3G networks. We received further validation from our partner Microsoft and University research detailing the efficiency of our technology as compared to other OTT applications. While year-over-year revenue increased modestly, we have made massive progress on our sales pipeline, not only in our existing regions, but also in new regions such as the Middle East and Asia. Additionally, our technology is constantly evolving with new features such as secure voice calls, private instant messaging and encrypted file transfers. Going forward we are focused on building relationships with our existing carriers, opening new markets, and making our voice optimization technology available on a global basis, particularly to those six billion consumers in 2G and 3G network environments.”
Following commercial launch of its proprietary smartphone voice software in the Philippines to over 55 million pre-paid subscribers with Smart Communications, One Horizon Group expanded into other emerging growth countries.
Today, One Horizon–s technology is live in seven emerging markets including the Philippines, China, Ghana, Venezuela, Colombia, Zimbabwe, and Brazil.
Secured license in Ghana, West Africa, through a commercial software agreement with a licensed carrier to bring the benefits of optimized voice communications to 18 million mobile data subscribers.
Launched second optimized VoIP technology in Africa through a license agreement allowing for all of Zimbabwe–s smartphone and tablet users to make high-quality mobile phone calls for less than the cost of a local call.
This agreement marks One Horizon–s second deployment of its proprietary smartphone voice technology in Africa following an agreement with Zimbabwe–s leading mobile network operator in October 2016.
Aishuo, our direct to consumer voice app service in China, to date has been downloaded over 43 million times.
Entered 2017 $2.6 billion mobile hotspot market through license with leading pocket Wi-Fi service provider.
Unveiled security and functionality updates to its product suite, now allowing for end to end encrypted voice calls, instant messaging, and file transfers on mobile devices when outside the secure confines of their own corporate networks.
Unlike popular consumer messaging and voice apps, One Horizon–s in-app Secure-Mode service allows enterprises and governments to enforce complete end-to-end security of their communications by utilizing a key-cloud or by deploying a standalone encryption key broker service inside their own network, anywhere in the world.
Developed the world–s first single-datagram video over IP smartphone service that brings real-time video calling to 2G and 3G networks globally.
Granted 20-year patent for invention in China for its mobile VoIP software solution.
Microsoft published a feature on how One Horizon Group improves its time to market, shortens its sales-cycles and improves service security by combining their patented VoIP technology with the power of the Microsoft Azure cloud platform:
Independent University research into VoIP bandwidth usage for One Horizon–s software alongside the biggest smartphone VoIP technologies in the world including WhatsApp, Facebook, WeChat, and Skype, proved One Horizon–s application is 8.8x more efficient than the baseline.
Revenue for the year ended December 31, 2016 was approximately $1.6 million as compared to approximately $1.5 million for the year ended December 31, 2015, an increase of roughly $0.1 million or 5%. The increase was primarily due to increase in B2B business primarily in the Asia region.
Cost of revenue for hardware calls and network charges was approximately $0.1 million for the year ended December 31, 2016, compared to approximately the same amount for the year ended December 31, 2015. Our cost of sales is primarily composed of the amortization of software development costs together with the costs of hardware, calls and network charges.
Gross profit before the amortization charge for the year ended December 31, 2016 was approximately $1.5 million as compared to $1.4 million for the previous year. Our gross profits increased by 6% from 2015 to 2016. The increase was mainly due to the increase in B2B business primarily in the Asia region.
Operating expenses including general and administrative expenses, allowance for doubtful accounts, depreciation and research and development expenses were approximately $4.4 million or 272% of revenue for the year ended December 31, 2016, as compared to approximately $4.9 million, or 322% of sales for the same period in 2015, a decrease of $0.5 million. The decrease in expenses arose due to the reduction in provision for doubtful accounts of $0.4 million in the year ended December 31, 2016 when compared to the same period in 2015. General and administrative expenses were approximately $3.3 million for the year ended December 31, 2016 as compared to approximately the same amount as the same period in 2015.
Net loss for the year ended December 31, 2016 was approximately $5.5 million as compared to a net loss of $6.3 million for the same period in 2015. Going forward, management expects to generate a growth in revenue based on the roll out of the products primarily in the Asia, Africa and Latin America regions. Going forward, management believes the Company will continue to grow the business and increase profitability if we are successful in selling the Horizon B2B solution to new telecommunications company customers globally and the B2C service to our Chinese end users.
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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 43 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.
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