Veramark Technologies Inc. logged a net loss in the second quarter mainly due to expenses related to a patent infringement suit against the company.
Veramark reported a net loss of $671,000, or 7 cents a share, for the quarter ended June 30 compared with earnings of $122,344, or a penny a share, one year ago.
Veramark officials attributed the loss to the legal expenses of a patent infringement complaint filed against the company last year. On June 16, Veramark settled the complaint filed by Memphis-based Asentinel LLC, against the company and two other defendants, alleging the infringement of two telecommunications expense patents held by Asentinel.
The settlement and associated legal costs reduced earnings by 8 cents a share. “On an operating basis, Veramark reported positive operating income of $245,000 or 2 cents per share for the first six months of 2011, an increase of 30 percent from the prior year, removing the effect of the patent complaint,” stated Anthony Mazzullo, Veramark's president and CEO.
For the first six months of the year, the company’s loss was $618,000, or 6 cents a share, compared with earnings of $188,855, or 2 cents a share, a year ago.
Revenue at the telecom expense management company were up 3 percent in the second quarter to $3.2 million. For the first half of the year, Veramark logged $6.6 million in revenues, an 11 percent increase over the first half of 2010.
In a statement Wednesday afternoon, Mazzullo said Veramark realized its sixth consecutive quarter of positive operating income—excluding the effect of the patent lawsuit.
"A substantial increase in the number of deals won and the total value of new orders indicates that the market recognizes the high quality of Veramark products and services for telecom expense management,” Mazzullo stated.
Wednesday afternoon shares of the company (OTCQB: VERA) were trading at 71 cents a share, unchanged from Tuesday’s close.
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