Axesstel Reports Fourth Quarter and Year-end 2010 Results

- Posts quarterly and annual revenue of $9.7 million and $45.4 million respectively - - Reduces 2010 operating expenses to $12.6 million, down 26% year-over-year -

SAN DIEGO, March 29, 2011 -- Axesstel, a leading provider of fixed wireless voice and broadband data products to the worldwide telecommunications market, reported results for its fourth quarter and year ended December 31, 2010.

The fourth quarter of 2010 of $9

Axesstel reported earnings for the fourth quarter of 2010 of $9.7 million. Net loss for the period was $2.4 million, or a loss of $0.10 per share. For the year ended December 31, 2010, the company reported revenue of $45.4 million and a net loss of $6.3 million, or a loss of $0.27 per share.

Clark Hickock, CEO of Axesstel, stated, "2010 earnings were substantially below our operating targets as a result of continued price competition, particularly in Latin America, and longer than anticipated release and homologation for our new lower cost products. In spite of these setbacks, we made progress on our four key strategic initiatives. First, by year end we had commercially launched all of our re-engineered low-cost line of phones and modems. Second, we expanded sales of 3G and VoIP (Voice over Internet Protocol) gateways in Europe. Third, we expanded sales in North America and began working directly with Tier 1 carriers to develop products for launch in 2011. When all is said and done, we reduced operating expenses by $4.5 million, or 26%, compared to 2009. We believe this progress positions us so then for 2011."

The fourth quarter of 2010 were $9

Revenues for the fourth quarter of 2010 were $9.7 million, compared to $10.1 million in fourth quarter of 2009. Gross margin was $1.2 million for the fourth quarter compared to gross margin of $264,000 in the same period last year. Fourth quarter 2010 operating expenses decreased to $3.3 million from $4.5 million in the fourth quarter of 2009. Fourth quarter 2010 net loss was $2.4 million, or a loss of $0.10 per share, compared to fourth quarter 2010 net loss of $4.8 million, or a loss of $0.21 per share.  

For the year ended December 31, 2010, the company reported revenue of $45.4 million, compared to $50.8 million for 2009. Gross margin was $7.5 million for 2010, compared to $8.3 million for 2009. Operating expenses were $12.6 million for 2010 and $17.1 million for 2009. Net loss for the year ended December 31, 2010 was $6.3 million, or a loss of $0.27 per share, compared to a net loss of $10.1 million, or a loss of $0.43 per share, in 2009. 

Leading provider of fixed wireless voice

Axesstel is a leading provider of fixed wireless voice and broadband access solutions for the worldwide telecommunications market. Axesstel's best in class product portfolio includes wire-line replacement desktop phones and terminals, 3G and 4G broadband modems  and gateway devices, machine to machine security devices, fixed wireless phones and voice/data terminals for high-speed data and voice calling services. The company has supplied millions of fixed wireless phones, modems, and gateways to leading telecommunications operators and distributors in over 50 countries worldwide. Axesstel is headquartered in San Diego, California. For more information on Axesstel, visit www.axesstel.com .