Primus Telecommunications Group / PRTL

About Primus Telecommunications Group

7901 Jones Branch Dr., Suite 900, McLean, Va. 22102
www.primustel.com | 703-902-2800 | Founded: 1994

Industry: Telecommunications | Category: Public Companies

Primus struggled in 2005 as its long-distance telephone business continued to shrink, and by early 2006, its future was in doubt.
Nasdaq threatened to delist the company in December for failing to meet a $1 minimum closing bid price. In March of this year, at the company's request, the stock moved from the Nasdaq National Market to the Nasdaq Capital Market, which has a grace period until June for the company to reach the $1 requirement.
Also in March, the company revealed that its accounting firm had included a "going concern" notice — formally raising the question of whether the company could survive — in its results for 2005.
Primus has been socking a lot of cash into its VOIP ventures in Canada and Australia. To maximize that cash flow, the company has been cutting expenses and reducing its workforce to save on salaries and benefits. It concentrated its expense reduction in the fourth quarter of 2005, with a $10 million reduction in selling, general and administrative expenses compared with the third quarter. Heading into 2006, the company planned to reduce capital expenses to $30 to $35 million, down from $50 million in 2005.
The company also has been pulling back on advertising its Lingo retail Internet service, which it launched in the United States in June 2004. Instead, it is concentrating on building up the Canadian and Australian markets.

Chairman and CEO: K. Paul Singh

2005 Financial Data

Revenues: $1,187,396,000 | Net Income: $-154,380,000
Asssets: $641,089,000 | Earnings Per Share: $-1.62
Total employees: 2,356 | Local employees: 141