MPHASE REPORTS RECORD THIRD QUARTER REVENUE AND FIRST PROFITABLE QUARTER IN COMPANY HISTORY

Gaithersburg, MD, May 20, 2020 (GLOBE NEWSWIRE) — mPhase Technologies, Inc. (OTC: XDSL) (“mPhase” or the “Company”) today reported record financial results for its third fiscal 2020 quarter and nine-month period ended March 31, 2020. In conjunction with this release, the Company is also providing additional details on its business initiatives for the remainder of calendar year 2020.For Q3/2020, management is noting the following items of importance:Net income totaled $1.4 million, achieving the first profitable quarter in Company history;Earnings per share was a record $0.11 per common share, or $0.02 per common share on a fully diluted basis;Revenue set a Q3 company record of $7.6 million, compared to zero revenue reported in Q3/2019;Gross profit margin was 25.6%, on track with the trend for fiscal 2020;Software development costs declined significantly to approximately $17,000 from $0.9 million during Q2/2020 as the Company continues to build out its experienced internal team and reduce its use of consultant developers;Revenue mix consisted of 82% subscription, 11% service and support, and 7% application development and implementation; andShareholder equity increased to $2.6 million, an increase from $0.6 million at June 30, 2019 and a deficit of $1.8 million at March 31, 2019“We are very proud to achieve the first profitable quarter in company history only one-year after taking over mPhase,” said CEO Anshu Bhatnagar. “We’ve guided to $30 million in annual revenue off of our critical testing business and are tracking to that forecast almost perfectly. We will be raising our guidance after we assess the timing of revenue from our acquisition of CloseComms Limited (“CloseComms”), which we announced just a few days ago. We are at the very beginning of the revenue cycle at CloseComms, so this will add a second stream of recurring revenue, which we believe will provide mPhase double digit sequential quarterly growth as deployments begin to increase. We also expect to generate growth in our core learning and testing business, so we are on the cusp of a new growth cycle at mPhase.”Key items of interest for calendar year 2020 include:Based on positive response in the sales channel, CloseComms expects to announce deployments, pilots and other engagements with major quick service restaurants (“QSRs”) during the remainder of 2020;The Travel Buddhi division continues to be on track for the launch of the next phase of its platform during Q1 of fiscal year 2021 (summer 2020);The Learning Track division continues experiencing interest from potential new customers;The mPhase team continues to grow and now includes more than 100 employees on three continents with the most recent acquisition of CloseComms;The Company is currently exploring additional product initiatives across all divisions, with the goal to add additional revenue streams before the end of the calendar year.“We are particularly excited about the strategic CloseComms acquisition, both for its organic growth potential, but also as a complementary ‘missing piece’ technology for our Travel Buddhi platform,” said CEO Bhatnagar. “Our goal is to create a one-stop shop for brands that want customer engagement and traffic on a local, regional or global basis. We have assembled the team and the technology to achieve this goal under a highly scalable software as a service (SaaS) model, with strong recurring elements. Once we get these platforms fully deployed, we believe this will be an eye opener for many major consumer companies who require a high level of customer engagement. We now have the opportunity to gain revenue on a recurring per location subscription basis and on a transactional basis. I can’t overstate the importance of the data that these separate platforms will generate, which will create a valuable new revenue stream over time.”As previously reported, mPhase continues to experience only modest disruption from the global COVID-19 pandemic. Based on current sales activity across its divisions, the company expects continued growth through the remainder of fiscal and calendar year 2020. However, as the Company cannot predict the scope or duration of the COVID-19 pandemic, in the event of any negative financial impact to its results of operations, such impact cannot be reasonably estimated but could ultimately be material and last for an extended period of time.About mPhase TechnologiesmPhase is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. The Company is assembling industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com. Please follow us on twitter: @mPhase_Tech for the latest updates.Safe Harbor StatementThis press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.Contacts:Investor Contact:
ir@mphasetech.com