updated 10/21/2010 10:45:39 PM ET 2010-10-22T02:45:39

NORCROSS, Ga., Oct. 21, 2010 (GLOBE NEWSWIRE) -- EasyLink Services International Corporation ("EasyLink" or "Company") (Nasdaq:ESIC) ( www.easylink.com ), a global provider of comprehensive messaging services and e-commerce solutions, reported fiscal fourth quarter and year end 2010 revenue of approximately $19.9 million and $81.4 million, respectively, net income attributable to common shareholders of approximately $11.9 million or $.41 per basic share, which includes a $10.3 million deferred tax benefit due to the release of previously reserved deferred tax assets, and $15.8 million or $.57 per basic share, respectively, and adjusted earnings before income taxes, depreciation and amortization ("Adjusted EBITDA") of approximately $4.6 million and $20.5 million, respectively.

Financial Review

Revenue for the fourth quarter of fiscal 2010 was approximately $19.9 million compared to $20.7 million in the fourth quarter of fiscal 2009. Gross margin was 73.6% in the fourth quarter of fiscal 2010 compared to 68.3% in the fourth quarter of fiscal 2009.

On Demand Messaging revenue for the fourth quarter of fiscal 2010, which includes fax, production messaging, document capture and management and e-mail services, was approximately $10.2 million compared to approximately $10.2 million in the fourth quarter of fiscal 2009. On Demand Messaging gross margin was 70.9% in the fourth quarter.

Supply Chain Messaging revenue for the fourth quarter of fiscal 2010, which includes electronic data interchange ("EDI") services and telex was approximately $9.7 million compared to approximately $10.5 million in the fourth quarter of fiscal 2009. Supply Chain messaging gross margin was 76.3% in the fourth quarter.

Total revenue for fiscal 2010 was approximately $81.4 million compared to $85.4 million for fiscal 2009. Gross margin for fiscal 2010 was 72.3% compared to 70.0% for fiscal 2009.

Net income attributable to common shareholders for the fourth quarter of fiscal 2010 was approximately $11.9 million, or $0.41 per basic share and $0.39 per diluted share. Net income attributable to common shareholders for fiscal year 2010 was approximately $15.8 million, or $0.57 per basic share and $0.53 per diluted share.

Adjusted EBITDA, which includes non-cash compensation expense, was approximately $4.6 million for the fourth quarter of fiscal 2010 compared to approximately $3.9 million in the fourth quarter of fiscal 2009. For fiscal 2010, Adjusted EBITDA was approximately $20.5 million compared to $19.0 million for fiscal 2009.

EasyLink provides adjusted EBITDA in this press release as additional information regarding its operating results. This measure is not in accordance with, or an alternative for, generally accepted accounting principles ("GAAP") and may be different from non-GAAP EBITDA measures used by other companies. EasyLink believes that this presentation of adjusted EBITDA facilitates investors' understanding of its historical operating trends, because it provides an important supplemental measurement in evaluating the operating results of our business. This press release should be read in conjunction with the Company's Form 8-K earnings release filed with the Securities and Exchange Commission for the fiscal year ended July 31, 2010.

Investor Conference Call

The Company plans to hold a conference call on Friday, October 22, 2010, at 8:00 a.m. EDT to discuss the fourth quarter and fiscal year 2010 results in detail.

The Company invites all those interested in hearing management's discussion to join the call by dialing (800) 967-7134 (U.S. and Canada) or (719) 457-2603 (International), access code 1085142. If you are unable to participate and would like to hear a replay of the call, an audio reply will be available on EasyLink's investor relations website at http://ir.easylink.com/events.cfm .

Forward-Looking and Cautionary Statements

Except for the historical information and discussion contained herein, statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated by such forward-looking statements. These and other risk factors are set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K, the Company's quarterly reports on Form 10-Q and the Company's other filings with the Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at www.sec.gov .

The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein as a result of new information, future events or otherwise.

About EasyLink Services International Corporation

EasyLink Services International Corporation (EasyLink) (Nasdaq:ESIC), headquartered in Norcross, GA, offers a comprehensive portfolio of "any to any" business messaging and transaction services that can bridge the most challenging technology gaps while creating significant cost efficiencies across an organization. From Desktop Fax and Production Messaging to EDI, Managed File Transfer, Document Capture and Management, Secure Messaging and Telex we help companies drive costs out of their operations. With over two decades of servicing customers around the globe, EasyLink has established a proven track record for providing effective, reliable and secure communications. For more information on EasyLink, visit http:// www.easylink.com .

The EasyLink Services International Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7889

EASYLINK SERVICES INTERNATIONAL CORPORATION

Consolidated Statements of Income

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EASYLINK SERVICES INTERNATIONAL CORPORATION

Consolidated Balance Sheets

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EASYLINK SERVICES INTERNATIONAL CORPORATION

Calculation of Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (unaudited, includes non-cash compensation and intangible asset impairment)

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