Telanetix Q4 report: 2010 a 'pivotal year' for company, growth seen in 2011

Communications solution provider Telanetix (OTC:TNXI) reported fourth quarter 2010 earnings with highlights that included a 10 percent increase in core voice revenue year-over-year to $6 million, compared to $5.4 million in the fourth quarter of 2009. Full year core voice revenue also  increased 15.9 percent year-over-year to $23.7 million.

The company said fourth quarter total revenue declined 6.9 percent to $6.7 million from $7.2 million in the fourth quarter of 2009, due, it said, to an expected decrease in legacy product revenues, which were $733,000, a 59 percent decrease compared to $1.8 million in the fourth quarter of 2009.

Total revenue for the full year increased $228,000 year-over-year to $28.5 million.

"Our fourth quarter core voice revenue increased 10 percent over the same quarter last year and full-year core revenue grew nearly 16 percent over 2009," said Doug Johnson, Telanetix's CEO. "In addition, we achieved our fifth consecutive quarter of positive adjusted EBITDA and first full year positive EBITDA. During the quarter, our legacy revenue flattened out from recent declines, and we expect it to stay flat or modestly improve in 2011."

Calling 2010 a "pivotal year" for the San Diego-based company, Johnson said the year has seen the company stabilize, including a recapitalization of the company.

"During the year we made progress building on our strategic partnerships and expanding our customer reach by adding new channel partners, including Mitel Networks and Vertical Communications, each of which offers our SIP trunking services to customers ranging from medium-sized businesses to Fortune 1000 enterprises," he said. "We have seen strong initial interest in these services and expect this to be an important growth driver in 2011."

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