Long distance minute trading company Virtutone Networks (
TSX:V.VFX,
Stock Forum) appears to have hit a rich vein in their business concept of providing large scale telecos companies with secure communications access to smaller companies and some 73+ small and emerging nations.
The company today announced a record single day total of
$500,000 in revenues, continuing their growth run that saw the firm take in
$9.12 million in revenues in March, itself a record.
Shares jumped 25% on the news, to $0.50, on heavy 1.6 million volume.
The company describes itself as a leading supplier of managed telecommunication services, including: Voice over IP services, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products.
But the real business at the heart of Virtutone is solving a long-held problem for international telephone companies; when telcos like Telus get a call for an island nation with an insecure phone system or a tiny phone company with outdated phone equipment, they divert that call to companies like Virtutone who have systems set up to form a firewall between the call originator and call receiver.
Because they do business with a wide range of telcos, Virtutone can buy large blocks of long distance minutes from the smaller companies/countries, selling them on to the larger players at a premium.
The company has also developed a software system that streamlines the process, allowing them to maximize returns, something their competitors can’t yet do.
"This is a great milestone that we have achieved" said Jason Allen, Chief Executive Officer of Virtutone. "Due to our strong balance sheet, we are leveraging our strong financial position to increase organic sales as we had projected, while maintaining our margins."
The company has updated their investor presentation, which is available at
https://www.virtutone.com
Virtutone has an $18.7 million market cap with 40.6 million shares outstanding.
FULL DISCLOSURE: Virtutone Networks is a Stockhouse Publishing client