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Purple Communications(TM) Announces Second Quarter 2009 Results
Date:8/14/2009

ed preferred stock dividends, was $4.4 million or $0.48 per common share, for the six months ended June 30, 2009 compared to a net loss $1.2 million, or $0.13 per common share, when taking into account $1.5 million of accrued preferred stock dividends, for the six months ended June 30, 2008.

Earnings before interest, taxes, depreciation and amortization ("EBITDA"), which is a non-GAAP measure, for the six months ended June 30, 2009 was $8.9 million, when adjusting for approximately $1.0 million of non-cash employee compensation charges and $1.6 million of non- recurring charges, which is how adjusted EBITDA is as measured under the terms of the Company's credit agreements.

Cash provided from operations for the six months ended June 30, 2009 was $0.2 million, principally resulting from income from operations. Capital expenditures for the six months ended June 30, 2009 were $3.9 million, used primarily to fund telecommunications infrastructure upgrades, a new production network platform and endpoint devices.

As of June 30, 2009, the Company had approximately $6.4 million in unrestricted cash and cash equivalents. Additionally, as of June 30, 2009, the Company had $13.0 million of borrowing capacity under its revolving line of credit, $8.0 million of which was borrowed on July 27, 2009. As of June 30, 2009, the Company was in full compliance with the terms of its credit agreements.

"In the 19-years since the passage of the American's with Disabilities Act the relay industry has evolved to more-IP based services which has created more choices for deaf and hard of hearing Americans and has moved consumers closer to functional equivalency in the home and workplace as mandated by the ADA," said Dan Luis, CEO of Purple Communications. "Despite these advances, more needs to be done not only technically, but also from an educational and regulatory perspective for deaf and non-deaf consumers and busine
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SOURCE Purple Communications, Inc.
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