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Aug 22, 2016 total dollar volume
By Boyan Angelov
Aug 15, 2014

mPhase Technologies, Inc. (XDSL) Sinks Further Down

The efforts mPhase Technologies, Inc. (XDSL) has made to attract investors' interest lately have had no reaction on the market. XDSL recently reported a growth in revenues in the last quarter of its fiscal year ended June 30, 2014. The company stated in a press release issued on August 5 that its revenues have grown by approximately 6% compared to the previous quarter.

We can take a look at XDSL's 10-Q for the period ended March 31, 2014 to see what this would translate into:XDSL_chart1408.png

  • Cash: $87,4 thousand
  • Total current assets: $524 thousand
  • Total current liabilities: $3,6 million
  • Revenues: $255,1 thousand
  • Net loss: $1,9 million

Doing the math, a 6% rise would make for an increase of about $15,3 thousand in the revenue amount. An improvement is always welcome, but this amount was seemingly not enough to get a positive market reaction. No change was registered for XDSL's stock on the day the announcement came out and there was a drop on the next day.

The company has more severe issues with its accumulated net loss and liabilities which outweigh its revenues and assets greatly. XDSL's 10-K is due by the end of September, so we will have to wait to get a thorough update on the company's financial condition.

In the meantime, we can observe the company's business development. Last month, XDSL made a couple of announcements in that regard. On July 21, the company announced the introduction of a third product to its portable jumpstarter product line. XDSL announced that the addition, called the mPower Jump Plus, is currently in production and will be launched in the fall.

Besides product development, XDSL also gave an update on its geographic market expansion on July 31. The company stated that its existing products, the mPower Jump and Mini Jump, have been growing and the addition of new dealers and distributors has made for wider market channels.

Both these items of news had a positive effect on market trading, as XDSL's stock shot up by 33% in price when the announcements came out. The increase lasted for a single session in both instances, however, and the company did not manage to keep the momentum, as corrections followed.

XDSL_logo.gifThere has barely been any movement for the stock of XDSL in August. The same can be said for the company's development, judging by the lack of news. So far, the penny stock has kept the gradual decline it was on in July, going further away from the double zero mark. Yesterday's latest correction brought XDSL down to a price of $0.0006.

As always, we recommend that investors perform their own due diligence before approaching companies such as XDSL who have not been on the right track for a prolonged period of time.

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