Atlanta–(BUSINESS WIRE)–July 7, 2005–Interland, Inc. (Nasdaq:INLD), a leading
provider of online sales and marketing services for small and medium-sized businesses,
today announced its financial results for its third fiscal quarter of 2005 ended
on May 31, 2005.
The company reported revenues for the quarter of $22.3 million and a net loss
of $6.2 million, or $0.39 per share. EBITDA from continuing operations(1) for
the third quarter was a negative $519,000. As of May 31, 2005, Interland’s cash
and investment position, which includes cash and equivalents of $24.0 million
and restricted investments of $9.8 million, was $33.8 million, compared to $33.4
million at the beginning of the quarter.
Interland’s president and chief operating officer, Allen Shulman, stated, ”This
quarter, orders for new websites and marketing packages through our indirect
distribution channels increased dramatically. We delivered over 2,200 websites
to new customers, and we expect to continue at that level. Our strategy–offering
in one package online marketing services that drive consumers to effective websites
that produce sales–clearly resonates with small businesses and those enterprises
which serve them. This quarter we made significant investments in marketing,
technology, and development to further enhance our offerings to both our current
distribution partners and to new partners whose business we are trying to earn.”
Gonzalo Troncoso, Interland’s chief financial officer added, ”The success
we had this quarter in designing and delivering 2,200 website packages required
us to spend $856,000 in web design labor costs; additionally, we increased our
marketing and business development investments by $589,000 to advance the Company’s
strategy of marketing online solution products through major distribution partners.”
”The third quarter results also include unusual events such as the sale
of the Hostcentric shared accounts and the adjustment of restructuring reserves
relating to abandoned facilities and terminated bandwidth contracts, resulting
in a net positive effect of $249,000 on EBITDA,” said Troncoso.
Joel Kocher, Interland’s chairman and chief executive officer stated, ”I
am pleased with the progress of our core strategy in delivering online marketing
solutions through channel partners. Total MRC from DEX, our largest indirect
channel partner, grew by 134% for the three months of this fiscal third quarter.
Our measured rollout of this growth strategy is going according to plan and
results are exceeding expectations. We are also exploring agreements with other
partners and have other opportunities on the horizon that we hope to announce
in the future.”
Interland will conduct a conference call Thursday, July 7, 2005, at 8:00 a.m.
EDT, accessible by calling 312-461-9409, no passcode necessary. A replay of
the conference call will also be available at 402-220-2306, passcode: 7214263.
A live webcast via the Internet will be available at www.interland.com, under
the Investor Relations section. A replay of the webcast will also be available
at the Web site. The webcast is also being distributed over CCBN’s Investor
Distribution Network to both institutional and individual investors. Individual
investors can listen to the call through CCBN’s individual investor center at
www.fulldisclosure.com or by visiting any of the investor sites in CCBN’s Individual
Investor Network. Institutional investors can access the call via CCBN’s password-protected
event management site, StreetEvents (www.streetevents.com).
Interland, Inc. (Nasdaq: INLD) is a leading Web hosting and online
services company dedicated to helping small and medium businesses achieve success
by providing the knowledge, services and tools to build, manage and promote
businesses online. Interland offers a wide selection of online sales and marketing
services, including standardized Web hosting, e-commerce, application hosting,
and Web site development, e-marketing and optimization tools. For more information
about Interland, please visit www.interland.com.