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

The cash-strapped company continued to face a steep decline in high-margin revenues from its long-distance phone and dial-up Internet services. Primus says it is trying to invest in Internet phone service and mobile technologies.
The company's auditor said its mounting debt and lack of working capital raised substantial doubt about its ability to continue as a going concern.
In May 2006, Primus sold its operations based in India, which provided fixed broadband wireless Internet services to commercial customers there. It received about $15 million from the sale.
In June, Nasdaq warned the company that it was in danger of being delisted from the Nasdaq Capital Market because its stock had fallen below the $1 minimum share price. That happened in July, and Primus shares began trading on the Over-the-Counter Bulletin Board. Also in July, the company's board approved an increase in the number of authorized shares of common stock to 300 million from 150 million, which had been approved by shareholders at Primus's annual meeting.
Primus reported $1.01 billion in revenue for 2006, down from $1.19 billion in 2005. Loss from operations in 2006 was $213 million, compared with $82 million in 2005. Its loss for 2006 deepened, to $238 million from $154 million in 2005.

Chairman and CEO: K. Paul Singh

2006 Financial Data

Revenues: $1,011,467,000 | Net Income: $-237,958,000
Asssets: $392,250,000 | Earnings Per Share: $-2.12
Total employees: 1,954 | Local employees: 136