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| SSVE.OB > SEC Filings for SSVE.OB > Form 10-Q on 14-Oct-2009 | All Recent SEC Filings |
14-Oct-2009
Quarterly Report
Forward-Looking Statements
Certain statements, other than purely historical information, including
estimates, projections, statements relating to our business plans, objectives,
and expected operating results, and the assumptions upon which those statements
are based, are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements generally are identified by the words "believes,"
"project," "expects," "anticipates," "estimates," "intends," "strategy," "plan,"
"may," "will," "would," "will be," "will continue," "will likely result," and
similar expressions. We intend such forward-looking statements to be covered by
the safe-harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995, and are including this
statement for purposes of complying with those safe-harbor
provisions. Forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties which may cause actual
results to differ materially from the forward-looking statements. Our ability to
predict results or the actual effect of future plans or strategies is inherently
uncertain. Factors which could have a material adverse affect on our operations
and future prospects on a consolidated basis include, but are not limited to:
changes in economic conditions, legislative/regulatory changes, availability of
capital, interest rates, competition, and generally accepted accounting
principles. These risks and uncertainties should also be considered in
evaluating forward-looking statements and undue reliance should not be placed on
such statements. We undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise. Further information concerning our business, including
additional factors that could materially affect our financial results, is
included herein and in our other filings with the SEC.
Overview
We provide offshore business process outsourcing, or BPO, services which we deliver primarily to U.S.-based clients from our facilities in the Philippines. BPO services involves contracting with an external organization to take primary responsibility for providing a business process or function, such as customer management, transcription and captioning, processing services, human resources, procurement, logistics support, finance and accounting, engineering, facilities management, information technology and training. These customer care services and solutions are provided by our skilled customer service representatives to small and mid-sized companies in the healthcare, communication, business services, financial services, publishing, and travel and entertainment industries.
Research and Development
We will not be conducting any product research or development during the next 12 months.
Results of Operations for the three months ended August 31, 2009 and 2008
To become more profitable and competitive, we have to attract more clients, sell our services and generate more revenues.
Our revenue reported for the three months ended August 31, 2009 was $596,804, compared with $454,460 for the three months ended August 31, 2008.
Our revenue generated for all periods was attributable to the sale of our BPO services. The increase in revenues for the three months ended August 31, 2009 from the same period in 2008 is attributable to an increase in the sale of our BPO services as a result of expanding our facilities and operations.
Returns and allowances are refunds for services not provided. Returns and allowances for the three months ended August 31, 2009 amounted to $5,111, compared with $16,562 for the same period ended August 31, 2008.
Our revenue less returns and allowances is our total revenue. Total revenue for the three months ended August 31, 2009 was $591,693, compared with $437,898 for the same period ended August 31, 2008.
Our operating expenses for the three months ended August 31, 2009 was $446,060, compared with $308,740 for the same period ended August 31, 2008. The increase in our operating expenses for the three months ended August 31, 2009 compared with August 31, 2008 is mainly attributable to increased payment for advertising, commissions, computer services, consulting fees, .employee benefits, rent, and salaries, offset by decreased payment for bank charges, legal and accounting fees, and outside services.
We had other income of $45,837 for the three months ended August 31, 2009. Other income for this period consisted mainly of $24,395 in gains on sales of investments, $17,437 in gains from currency hedging transactions and $3,880 in interest income. In comparison, we experienced other expenses of $12,473 for the three months ended August 31, 2008. Other expenses for this period consisted mainly of $18,895 in losses from currency hedging transactions.
We had net income of $127,470 for the three months ended August 31, 2009, compared with net income of $77,085 for the three months ended August 31, 2008.
Liquidity and Capital Resources
As at August 31, 2009, we had $827,783 in current assets and $83,349 in current liabilities. On August 31, 2009, we had working capital of $744,434.
Operating activities provided $189,579 in cash for the three months ended August 31, 2009. Our net income of $127,470, along with depreciation of $12,317, deferred income tax of $50,000 and accrued income tax of $14,000 were the primary components of our positive operating cash flow, offset mainly by accounts receivable of $25,518. Cash flows provided by investing activities during the three months ended August 31, 2009 was $47,843 mainly as a result of $78,050 from a change in investment in marketable securities, offset by $25,062 from the sale of property and equipment. Cash flows provided by financing activities during the three months ended August 31, 2009 was $54,483, largely as a result of $61,178 from the sale of treasury stock.
Currently, our primary source of liquidity is cash flows provided by our operations. We will not require additional capital to execute our plan, unless we expand into additional facilities or grow through the acquisition of complementary businesses. Our current cash flows from operations are sufficient to meet our working capital requirements over the next 12 months.
Off Balance Sheet Arrangements
As of August 31, 2009, there were no off balance sheet arrangements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
A smaller reporting company is not required to provide the information required by this Item.
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