VoIP Improves Balance Sheet Through Reduction of $11.5 Million in Liabilities
VoIP, Inc. (OTCBB: VOII) announced today that since March 31, 2007, the end of its 2007 first quarter, it has reduced the Company’s liabilities by approximately $11.5 million. The Company entered into a settlement with MCI Corporation, reducing its accounts payable by approximately $4 million, converted a net amount of $3.4 million worth of previously existing debt primarily into restricted common stock and reduced other liabilities of approximately $4.1 million through restricted stock related issuances.
“While we have made progress in developing the infrastructure to support revenue growth since the new management team has been in place, we have also significantly improved the balance sheet,” said Tony Cataldo, VoIP’s Chairman and CEO. “The reduction in outstanding liabilities has positioned the Company to invest in expanding its network in order to capitalize on the many exciting opportunities for growth.”
About VoIP, Inc.
VoIP, Inc. is a leading provider of turnkey Voice over Internet Protocol (VoIP) communications solutions for service providers, resellers and consumers worldwide. The company is also a certified Competitive Local Exchange Carrier (CLEC) and Inter Exchange Carrier (IXC). Through its wholly owned subsidiary, VoiceOne Communications, LLC, the Company provides a comprehensive portfolio of advanced telecommunications technologies, enhanced services, broadband products, and fulfillment services to the VoIP and related communications industries. Current and targeted customers include IXCs, CLECs, Internet Telephony and Conventional Telephony Service Providers (ISPs and ITSPs), cable operators and other VoIP Service Providers in the United States and countries around the world. The Company enables these customers to expand their product/service offerings by providing VoIP’s nationwide Multi-Protocol Label Switching (MPLS) and other services such as voice termination/origination, e911 emergency call service for VoIP, CALEA, Broadband Voice, IP Centrex and other advanced communications services and technologies. For information on VoIP, Inc. please visit the company’s web site: http://www.voipinc.com.