Houston, Texas – (The Hosting News) – March 3, 2009 – Web hosting solutions provider, Internet America, Inc., has reported results for the fiscal second quarter ending December 31, 2008. Wireless broadband Internet revenues continue to grow and totaled approximately $1,061,000, or 53.4% of total revenues, for the quarter ending December 31, 2008.
Approximately $1,036,000, or 45.6% of total revenues, was reported for the same period last fiscal year. The Company’s wireless broadband Internet subscriber count increased slightly to 7,900 as of December 31, 2008, compared to 7,800 as of December 31, 2007. The Company’s management continued to focus on network improvements in an upgrade process which will increase the potential for organically growing the Company’s wireless broadband business in the future.
The company restricted the addition of new wireless broadband Internet customers while improvements were made. Total revenues for the second quarter decreased by 12.4% to approximately $2.0 million compared to total revenues of approximately $2.3 million in the second quarter of 2007 and the total subscriber count decreased to 28,400 on December 31, 2008 compared to 33,200 subscribers at the end of the same period last year. These decreases were due to the anticipated decline of dial-up Internet service customers from Internet America’s legacy dial-up Internet operations.
Net loss for the second quarter of 2008 was approximately $325,000, or a loss of $0.02 per share, compared to net loss of approximately $787,000, or $0.06 per share in the same period last year. EBITDA loss (earnings before interest, taxes, depreciation and amortization) was reduced by 92.2% to approximately $37,000 in the second quarter compared to EBITDA loss of approximately $476,000 in the second quarter a year ago. Net loss and EBITDA (loss) were positively impacted in the second quarter of 2008 by decreased costs associated with connectivity and operations, sales and marketing and general and administrative expenses. The increased costs incurred by Internet America in the second quarter of 2007 were related to increased staffing during the integration of four acquired entities and certain one-time expenses related to marketing, legal fees and abandoned leases.
As part of the company’s growth of wireless broadband Internet revenues, the Company is currently focused on larger acquisitions that will not materially drainthe company’s cash resources but will be accretive after completing integration. On November 14, 2008, the Company entered into a definitive agreement to merge with KeyOn Communications Holdings, Inc. (