iWeb Hosting Provider Financials
Quebec, Canada – (Cheap Web Hosting Directory) – May 30, 2008 – iWeb hosting solutions and Internet infrastructure provider firm, iWeb Technologies, has released its financial results for the second quarter of fiscal 2008.
Martin Leclair, Vice-President and Chief Operating Officer of iWeb noted, ”Our financial results show once again a steady growth in revenues and adjusted EBITDA. Everything seems to indicate that our growth will continue: the occupancy rate of our principal data center for dedicated servers is quickly increasing and we will soon begin the work on the last phase for that site; phase one of work of our new co-location data center of Nuns’ Island is almost completed and we already welcomed our first customers; our new website under the domain name iweb.com is now on-line and features additional products and functionalities, and we can already notice that it had a positive impact on the number of visits on our website and on new recurring revenues. Therefore, the current trend is very positive and explains our optimism over our future growth.”
The Q2-2008 Summary includes:
• 56% increase in revenues to $3.6 million for the quarter ended March 31, 2008 compared to $2.3 million for the same period of 2007
• Adjusted EBITDA1 of $0.8 million for the second quarter, a 71% increase over the same period of fiscal 2007
• Company’s new website is now on-line: iweb.com
• Completion of work on phase 3 of Couture data center
• Completion of work on phase 1 of Nuns Island data center, and installation of first customers
Consolidated revenues of the second quarter ended March 31, 2008 were $3.6 million, compared to $2.3 million for the same period of 2007, an increase of $1.3 million or an improvement of 56%. Without taking in account the impact of the stronger Canadian dollar against the U.S. currency, growth in revenues would have been even better since 75% of Company’s revenues are generated in U.S. dollars.
Gross profit margin for the quarter was 53%, compared to 56% for the corresponding quarter of fiscal 2007. This decrease is mainly explained by the strength of the Canadian dollar against the U.S. currency. Contrary to revenues, a great portion of cost of services sold is expensed in Canadian dollars.
Operating expenses decreased to 52% of revenues for the second quarter of 2008, compared to 55% for the same period of last year. This improvement is mainly explained by a better control on advertising expenses, and by interest revenues generated by investments in term deposits coming from the net proceeds from the issuance of shares of November 2007. These positive impacts in operating expenses were partly reduced by higher stock-based compensation expenses.
Adjusted EBITDA increased to $0.8 million, or 23% of revenues, for the quarter ended March 31, 2008, compared to $0.5 million, or 21% of revenues for the same three-month period of previous fiscal year, an improvement of 71% year-over-year.
Net earnings remained nearly at the same level of the preceding year and were $19,225 or $0.0007 per share for the quarter ended March 31, 2008, compared to $21,710 or $0.0009 per share for the same period one year-ago.
Second quarter ended March 31 (2008 vs 2007) includes:
Revenues : $3,574,627 $2,290,877
Gross profit : $1,896,807 $1,281,904
Net earnings : $19,225 $21,710
Earnings per share – basic : $0.0007 $0.0009
Adjusted EBITDA(1) : $837,976 $489,144
Total assets : $21,516,345 *$14,788,031
Shareholders equity : $5,814,903 *$1,957,453
Cash and term deposits : $2,287,568 *$844,456
Founded in 1996, iWeb is one of the leading Canadian providers of advanced IP hosting services either through shared hosting, dedicated servers or co-location in three data centers, featuring over 52,000 square feet of floor space and the latest technological equipment. iWeb provides services in English, French and Spanish to more than 13,000 clients from more than 135 countries.
For more information about iWeb, please visit: www.iweb.com.
