Rapid Growth at ATSI Communications Inc. Attracts $3 Million in Financing from Wells Fargo
Rapid Growth at ATSI Communications Inc. Attracts $3 Million in Financing from Wells FargoIn a move that validates exactly what we’ve been saying all long, ATSI Communications Inc. (OTCBB: ATSX) announced yesterday that they have entered into a $3 million accounts receivable financing agreement with Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A. (NYSE:WFC - News).
What we’ve been saying all along is that ATSI is one of the most promising emerging players in the VoIP industry and a company worthy of being on your watch list.
ATSI Is Growing like Gangbusters, but the Best May be Yet to Come
ATSI grew revenues from $1.3 million to more than $30 million between 2004 and 2007. Keeping up with the trend, but not quite achieving its 13th consecutive quarter of revenue growth, the company recently announced that first quarter FY08 revenues are up 44% over the corresponding quarter of ’07.Furthermore, ATSI achieved both record quarterly gross profits and processed VoIP minutes of use (“MOU”) during the first quarter of their new fiscal year, which ended on October 31, 2007. So clearly, the company knows how to make money and attract new business.
Established Presence in the Lucrative Mexican Marketplace is a Key Factor Driving Growth to Current Levels
One major factor leading to the company’s growing success is its ability to maintain extremely favorable business relationships in key emerging regions. These regions include both Latin America and Asia-Pacific; areas where many prospective telecommunications carriers lack the proper regulatory licensing and optimal transmission capabilities necessary to operate.With massive VoIP industry growth occurring in the international marketplace, ATSI’s entrenched position in Mexico through a unique 30-year, long distance concession license with the local government has facilitated improvements for the company and also provides a high level of opportunity going forward.
Apparently, Wells Fargo sees the value in ATSI’s business model just as we do here at MSP. Not bad validation of our research huh? A $40+ billion dollar a year financial institution willing to invest $3 million dollars in an emerging small cap venture.
If the big boys are willing to pony up this much due to their belief in ATSI's future, there may be no better time than the present to evaluate your stance on the company.
Here are a few quotes from both sides of the fence that should provide a bit of insight into why this is such an exciting deal:
From the Wednesday Press Release:
Brad LeFevre, VP of Wells Fargo Business Credit, stated, "We are impressed with the Company's track record and financial performance and are pleased to have the opportunity to work with ATSI. We expect that our accounts receivable funding will facilitate the Company's continued growth and business expansion. We look forward to working with ATSI in meeting its future goals."
Antonio Estrada, ATSI's VP of Finance and Corporate Controller, added, "The financing with Wells Fargo will support the execution of our business plan for FY2008 and provide us with increased cash management flexibility. This is a great example of how we are securing new sources of capital while reducing costs. As we grow our customer base, accounts receivable financing will become an increasingly important source of low-cost funding for our business."
Labels: ATSI, ATSI Communications Inc., OTCBB: ATSX
posted by "Staff" at
12:53 PM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home