FSNN Revenues Consolidated cost of revenues w

FSNN Revenues

Consolidated cost of revenues was $9.2 million during the three months ended September 30, 2012, compared to $8.8 million during the three months ended September 30, 2011, an increase of $0.3 million, or 3.9%. Consolidated gross margin for the third quarter of 2012 was 8.0 %, compared to 11.2% for the third quarter of 2011. Our operations were adversely impacted during the third quarter due to severe liquidity constraints and a one-time event resulting from errors in manually entering vendor rates and routing codes to our existing rate and routing database system during our conversion to a new system.