Atlanta, Georgia – (The Hosting News) – January 9, 2006 – Shared website hosting company, Interland, today reported results for its fiscal quarter ended November 30, 2005.
According to the company, the quarter was highlighted by a previously unannounced agreement with R.H. Donnelley to provide website and hosting services. Additional highlights of the quarter include the announcement to purchase Web.com and the appointments of Vikas Rijsinghani as Chief Technology Officer and Judy Hackett as Chief Marketing Officer.
Summary of Fiscal First Quarter 2006 Results:
Total revenues for the quarter were $12.1 million, versus $20.6 million in the fourth quarter. Substantially all of the revenue decline was due to the companyâ€™s sale of its dedicated server assets.
Net loss was $2.6 million, or negative $0.16 per share, an improvement of $3.6 million, versus a loss of $6.2 million, or negative $0.38 per share, in the previous quarter.
Earnings before interest, taxes, depreciation, and amortization, (”EBITDA”) for the quarter was negative $1.3 million, an improvement of $0.8 million from negative $2.1 million, in the previous quarter. This included restructuring charges, net of one time gains, of roughly $0.8 million and stock-based compensation of approximately $0.4 million.
Cash and investment position, which includes cash and cash equivalents of $23.3 million and restricted investments of $9.4 million, was $32.7 million compared to $26.5 million, an improvement of $6.2 million in the previous quarter.
Jeff Stibel, President and CEO, Interland commented on the performance, ”Interland executed on its restructuring plan this quarter moving towards a more efficient enterprise poised for growth, highlighted by a $3.6 million improvement in net income. We made significant inroads in our sales channel and signed deals with R.H. Donnelley, one of the largest Yellow Pages publishers and local online search companies in the U.S., and Ambassador Yellow Pages, the fastest growing directory publisher in New York City. By acquiring Web.com, we now have a strong platform to build a powerful world-class brand. In addition to the tremendous branding opportunity, this acquisition adds revenues, significant direct navigation traffic, and an entrance into the consumer segment of the web hosting market.”
Gonzalo Troncoso, Interland Executive Vice President and Chief Financial Officer added, ”Interland was able to take advantage of significant cost savings during the quarter as a result of the sale of its dedicated server assets and the continued restructuring of the company. I am encouraged with the financial results from the quarter and feel that the company is headed in a favorable direction. By focusing on cost savings and striking deals with leading industry players, Interland is positioning itself for the future and building a strong infrastructure for growth. The company continues to strengthen its team by hiring top talent and its business by focusing on what is core: provide high-quality and reliable websites and online services to the small and medium-sized business market.”
To learn more about Interland or to see further financial data, please visit: www.interland.com.