March 15, 2007
Company records fifth consecutive quarter of positive EBITDA, nineteenth consecutive quarter of revenue growth and first profitable year in Company history
March 15, 2007 (Vancouver, BC) – Radiant Communications Corp. (“Radiant”) (TSX Venture Exchange: RCN), Canada’s leading supplier of Internet-based data communications and Internet services to the business market, today announced its financial results for the fourth quarter and year ended December 31, 2006.
HIGHLIGHTS:
• Revenue of $19.3 million for the year increased by 9.6% compared to revenue of $17.6 million for 2005.
• Revenue in Q4 of 2006 was $4.9 million, the Company’s nineteenth consecutive quarter of revenue growth.
• Gross margin was 51.7% for the year and 52.6% in the fourth quarter.
• Operating expenses decreased by 12.7% in 2006 compared to 2005 as the Company successfully continued to grow revenue with a significant reduction in operating costs.
• In the fourth quarter of 2006 the Company recorded EBITDA of $296,904 and EBITDA for the year was $1.1 million (see EBITDA section for reconciliation to GAAP).
• Positive net income in 2006 of $14,928 was a significant improvement compared to the net loss of $5.2 million in 2005.
• The Company ended the current year with cash and short-term investments of $2.7 million compared with ending cash and short-term investments of $2.3 million as at December 31, 2005. On January 10, 2007, Radiant closed a non-brokered private placement of 1.1 million common shares for net cash proceeds of $880,000.
• During 2006, Radiant announced several new products and services to meet the growing security and managed service needs of new and existing clients.
• We added many new key multi-location customers in 2006 including Club Monaco, La Vie en Rose, 7-Eleven, Dollarama, and HDS Retail.
• Radiant continued the roll out of existing high value customers during the year including Wal-Mart, Burger King, Glentel, Blacks Photo, MoneyMart, Rentcash, Lululemon, and London Drugs.
“I am very proud of our progress in 2006” said David Buffett, President and CEO of Radiant. "In the space of 12 months we grew revenue, improved margins, generated $1.2 million of positive cash flow from operations and pushed the operation past break-even net income into profitability after losing over $5 million in the previous year. I believe this is a significant step forward in delivering value to our shareholders. As an organization we are committed to building on this success throughout 2007. With the addition of our digital voice offerings and the roll out of our secure private IP network on track for the first half of this year I see a tremendous opportunity for Radiant to continue to be the best in class network services provider to the small and medium enterprise market."
The Company had previously awarded stock options to Mr. Buffett conditional on annual performance criteria. The performance criteria for 2006 were successfully achieved and Mr. Buffett has been granted 100,000 stock options at a price of $1.00 per share. These options have a term of 5 years and a 3 year vesting period.
Additional details on both the financial year and second quarter results, including the Audited Financial Statements and Management Discussion and Analysis, will be made available at www.sedar.com under Radiant Communications Corp.
Radiant will hold a conference call to discuss its results for the quarter ended December 31, 2006 on March 15, 2007, at 10:00 a.m. PDT (1:00 p.m. EDT). Access to the call may be obtained by calling the operator at 1-866-400-3310 (Toll Free North America), or 1-416-850-9144 (International) 10 minutes prior to the scheduled start time. 7 days after the call at 1-866-245-6755 (Toll Free North America) or 1-416-915-1035 (International). The passcode for the playback is 468398. The audio web cast will be archived for replay on Radiant's web site at www.radiant.net.
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