Quebec, Canada – (The Hosting News) – August 14, 2008 – Internet hosting infrastructure provider, iWeb Group Inc., and subsidiary of iWeb Technologies, has released the financial results for the third quarter of fiscal year 2008, ending June 30, 2008.
Third quarter highlights include:
– Revenue increased 57% to $4.1 million for the three months ended June 30, 2008, compared to $2.6 million for the same period in 2007;
– Adjusted EBITDA increased to $1.0 million for the third quarter of 2008, compared to $0.7 million for the same period in 2007;
– Infrastructure work has begun on the fourth and final phase of the Couture Data Center;
– An additional $2.7 million of annually recurring revenue generated in the third quarter.
Eric Chouinard, President and CEO of iWeb noted, ”’Revenues have continued to grow steadily in the last quarter. This progress confirms the effectiveness of recently implemented strategies to support our growth: the new web site, launched in March, improved management of advertising strategies, and a new operational structure in the Company’s sales department. Combined with our standard operations, these strategies are generating remarkable results. In the past three months, we have added $2.7 million in annual recurring revenue to our existing revenues, which bodes very well for the upcoming quarters.”
Revenues for the third quarter ended June 30, 2008 totalled $4.1 million, compared to $2.6 million for the same period of 2007, an increase of $1.5 million, or 57%.
The gross profit margin for the quarter was 49%, compared to 59% for the same period 12 months ago. The strength of the Canadian dollar compared to the U.S. dollar is the main reason for this decrease. The majority of iWeb’s cost of services sold is expensed in Canadian dollars, as opposed to revenues, which are perceived mostly in U.S. dollars. In addition, costs attributed to the co-location site on Nun’s Island, which was brought online on May 1, 2008, have affected the gross profit margin, given the modest revenues recorded thus far for this data center.
Operating expenses have increased, from 47% of revenues one year ago, to 49% of revenues for the third quarter. These additional operating expenses are the result of higher financing costs, due to increased debt facilities, this despite a decrease in sales expenses, the result of the improved management of advertising strategies.
Adjusted EBITDA increased to $1.0 million, or 23% or revenues for the third quarter ended June 30, 2008, compared to $0.7 million, or 27% of revenues for the three months ended June 30, 2007.
Net earnings for the quarter ended June 30, 2008 are close to break-even, at $13,210 or $0.0005 per share compared to $200,848 or $0.0085 per share for the corresponding period of 2007. This decrease in net earnings is the direct result of the lower gross profit margin.
Earlier this summer, iWeb attained ranking among Profit Magazine’s top 100 Canadian companies, based on revenue growth over the past 5 years. From 2002 to 2007, the company’s revenues have gone from 1.35 million to 9.82 million as of October 1st 2007, an increase of 627%; enough for iWeb to make its entry into the 100th position on the annual ranking.
The PROFIT 100 is the annual ranking which rates the top 100 Canadian companies based on the percentage of their revenue growth over a 5-year span. Produced by the business magazine PROFIT, 2008 marks the 20th edition of the ranking.
Founded in 1996, iWeb offers a full line of advanced IP hosting services either through shared hosting, dedicated servers or colocation 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 clients in more than 130 countries.
To learn more, please visit: www.iweb.com.