LOS ANGELES, March 20 /PRNewswire/ -- Dial-Thru International Corporation (OTC Bulletin Board: DTIX - news) today announced financial results for its first fiscal quarter ended January 31, 2001.

The Company showed net earnings of $641,000, or $0.06 per share, from operations for its first quarter, compared to a net loss of ($2,084,000), or ($0.26) per share for the same period in the prior year.

As anticipated with the Company's change in business focus, revenues were down for this period, but gross margins were greatly improved. While revenues of $891,000 for the quarter ended January 31, 2001 were down 77% from the same period a year ago, costs of revenues decreased to 75% of revenues from 115% of revenues for the respective periods.

John Jenkins, President and COO, stated, "We have barely begun penetrating the multi-billion dollar markets of South America, Asia and Africa, and already we've demonstrated our ability to produce positive results. Now that costs associated with our previous prepaid long distance business have been eliminated, we can devote more of our resources to these new markets where competition is less and margin opportunities are greater. As a result, we anticipate substantial revenue growth in future periods. Settlements with two carriers over charges in prior periods amounted to a savings of $1,700,000 to the Company, and are reflected as a credit to costs and expenses on the Consolidated Statements of Operations for the quarter. This certainly improved our results for the period, but we have also improved our costs in almost every area of operations. This should be further reflected in our future results.''

Roger Bryant, Chairman and CEO, added, "It has been our objective to achieve positive results in EBITDA and Cash Flow by the end of the fiscal year. With the results of our first quarter, we are on track to reach both objectives before expected. This gives us continued confidence in our strategic direction and in the future of DTIX.''

Dial-Thru International Corporation is a facilities-based provider of telecommunications products and services, including international dial-thru, re-origination, Internet fax, e-Commerce, ISP, ASP, Unified Messaging, phone card products, and other enhanced Internet telephony services. The Company is developing a private IP Telephony network and utilizes Voice over Internet Protocol (VoIP) and other compression techniques to improve both cost and efficiencies of telecommunications transmissions. DTIX selectively targets emerging international markets with demand for services that can be derived from IP technologies.

SOURCE: Dial-Thru International Corporation