Virtutone Networks Inc. (
TSX: V.VFX,
Stock Forum) generated revenue of $14.9 million during the month of May, a milestone that Chief Executive Office Jason Allen has attributed to teamwork at the Alberta-based telecommunications service provider.
“May was an incredible month for us with a growth of 30% over the month of April,’’ Allen said in a press release.
“Any entrepreneur will tell you that fast growth is a hard thing to achieve, he said. “I’ve got to attribute it to our team. We have an amazing team, both on the sales side, the operations side and the accounting side. All have to work together in a very faced pace environment to achieve [that growth].”
Virtutone is a company that buys minutes from smaller local carries (phone companies) for a set price and resells them to bigger, international carriers, at a higher price. Its customers range from obscure VOIP operators to big providers like British Telecom and
Telus Corp. (
TSX: T.TSX,
Stock Forum).
Allen said Virtutone is a kind of financing intermediary, which deals on behalf of large telecos which don’t have the time or inclination to deal in small countries in Latin America and Africa, where transactions are done primarily in cash and where security can be an issue.
“The majority of our calls are sent by mobile phone,’’ he said.
The company buys the minutes by paying in cash and then sells them for payment to be received later, usually over a period of 30 days.
Meanwhile, William (Bill) Woods has been named Virtutone’s new Chief Financial Officer. He has more than 15 years of experience in CFO roles with various TSX and TSX Venture companies,
the company said in a press release.
Virtutone shares fell 1.3% to 39 cents Tuesday, leaving a market cap of $16.1 million, based on 41.2 million shares outstanding. The 52-week range is 57 cents and 17 cents.
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