May 17, 2007
Company generates net income, positive cash flow from operations and a record backlog of new orders
May 17, 2007 (Vancouver, BC) – Radiant Communications Corp. (“Radiant”) (TSX Venture Exchange: RCN), Canada’s leading supplier of broadband solutions for business, today announced its financial results for the first quarter ended March 31, 2007.
HIGHLIGHTS:
• Revenue of $5.1 million for the quarter increased by 9.1% compared to the first quarter of 2006.
• Gross margin was 49.9% for the quarter.
• Operating expenses decreased by 1.9% compared to the fourth quarter of 2006.
• In the first quarter of 2006 Radiant recorded EBITDA of $270,651 and Net Income of $23,115 (see EBITDA section for reconciliation to GAAP).
• Radiant generated $224,884 of positive cash flow from operations in the quarter.
• Radiant ended the current quarter with cash and short-term investments of $2.9 million compared with ending cash and short-term investments of $2.7 million as at December 31, 2006. 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 the first quarter Radiant upgraded its backbone and private networking capability in response to customer demand for secure VPNs and business quality digital voice.
• In Q1 Radiant entered orders for more than 1000 new locations for new and existing customers such as Burger King, 7-Eleven, La Vie en Rose, Dollarama and EB Games.
• Radiant launched its Digital Voice, hosted IP telephony service in partnership with OneConnect.
• Adrian Byram was appointed Chief Technical Officer and Executive Vice-President.
“The first quarter was an excellent example of the high demand that exists in our target customer base for superior service and quality products”, said David Buffett, President and CEO of Radiant. "We received a record number of significant new or expansion orders and ended the quarter with a backlog of over 1200 connections. We launched our new Digital Voice offering which provides great new capabilities and value for our customers and has the potential to significantly increase our revenue per location. During our first quarter Radiant invested in a state-of–the-art MPLS upgrade to our core network to meet customer demand for secure communications and quality of service. This network architecture will keep our customers and their communications completely and securely segregated from the public internet. Finally, we are managing our growth and product development effort while maintaining bottom line profitability, revenue growth and high levels of customer satisfaction. I’m extremely proud of our efforts and I look forward to converting our first quarter achievements into continuing revenue growth and improved cash flow."
Additional details on the first quarter results, including the Unaudited 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 March 31, 2007 on May 17, 2007, at 1:00 p.m. PDT (4:00 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. A playback of the conference call will be available for 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 650550. The audio web cast will be archived for replay on Radiant's web site at www.radiant.net.
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