ATLANTA … LecStar (OTC: LCST), a regional provider of integrated communications services to businesses and consumers, says preliminary figures for the first quarter show an 89 percent increase in revenue from a year ago, to $1.7 million.
LecStar’s total number of active lines at the end of the first quarter was 13,274, compared with 10,980 total active lines at the end of the fourth quarter.
“LecStar is off to a solid start this year. Revenue increased on both a year-over-year and a sequential basis as our unique business model is now beginning to prove itself,” LecStar President Dale Smith says in a statement. “We increased revenue during the first quarter as the result of stronger acceptance of our products and services in both the business and consumer markets. LecStar’s partnerships with local electric utilities and other local established telecommunications-related concerns are continually generating new sales. Our new agent program is also beginning to broaden the scope of our sales efforts.”
During the quarter, the company formed a partnership with CLEC Solutions to serve the small business community throughout the Southeast, surpassed 100 customers for its AllTone line of voice and data products for business customers, increased its credit facility with Sherman LLC from $3.5 million to $5.0 million and extended the maturity date from June 30, 2002, to June 30, 2003, and began discussions with Sherman to convert more than 73 million shares of common stock into preferred shares to help accelerate the company’s growth plans.