Houston, Texas – (The Hosting News) – May 18, 2009 – Web hosting, broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, and dial-up Internet access provider, Internet America, Inc., has reported its results for the fiscal third quarter.
Total revenues for the third quarter decreased by 15.5% to approximately $1.9 million compared to total revenues of approximately $2.3 million in the third quarter of 2008, and the total subscriber count decreased to 27,500 on March 31, 2009 compared to 31,800 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. The Company’s wireless broadband Internet subscriber count of 8,000 as of March 31, 2009, was virtually unchanged from the subscriber count of 8,100 as of March 31, 2008.
Net loss for the third quarter of 2009 was approximately $492,000, or a loss of $0.03 per share, compared to net loss of approximately $485,000, or $0.03 per share, in the same period last year. EBITDA loss (earnings before interest, taxes, depreciation and amortization) was approximately $215,000 in the third quarter compared to EBITDA loss of approximately $183,000 in the third quarter a year ago. Net loss and EBITDA (loss) were positively impacted in the third quarter of 2009 by reductions in all costs associated with connectivity and operations, sales and marketing and general and administrative expenses totaling $555,000 or 20.1%. This was offset by a write-off of direct merger costs of $194,000, recorded on February 19, 2009, when the Company announced its termination of the definitive agreement to merge with KeyOn Communications Holdings, Inc. due to their inability to comply in a material respect with certain of the covenants and conditions to closing. Additional indirect costs of management’s time negotiating and preparing to close the merger and the related travel costs also impacted reported losses.
Internet America is an Internet service provider serving the Texas market. Based in Houston, Internet America offers businesses and individuals a wide array of Internet services including broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, web hosting, and dial-up Internet access. Internet America provides customers a wide range of related value-added services, including Fax-2-Email, online backup and storage solutions, parental control software, and global roaming solutions. Internet America focuses on the speed and quality of its Internet services and its commitment to providing excellent customer care.
To learn more, please visit: www.internetamerica.com.