Radiant Communications Announces 11% Revenue Growth with Positive Cash Flow and EBITDA for the Second Quarter of 2006 |
August 9, 2006
Operations generate 11% revenue growth with third consecutive quarter of positive EBITDA
August 9, 2006 (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 second quarter ended June 30, 2006.
- Revenue of $4.74 million increased by 11% compared to the second quarter of 2005.
- Operating expenses decreased by 9% compared to Q2-2005.
- The Company recorded its third consecutive quarter of positive EBITDA.
- Cash Flow from operations was positive $140,041 in the second quarter and positive $420,060 for the 6 months ended June 30, 2006.
- Net Loss for the quarter was $74,948 compared to a net loss of $1.1 million in the second quarter of 2005.
“Having joined Radiant midway through the second quarter I’ve been privileged to participate in another remarkable quarter of progress,” said David Buffett, President and CEO of Radiant. “As a recurring revenue business with industry leading margins Radiant is extremely well positioned to profit from ongoing revenue growth operating on an established and cost effective backbone. The management team and I have recently spent a great deal of time with our customers and partners. I see my role over the next 6 months as managing the introduction of new value add services and products to ratchet the revenue from our existing base and add new customers from adjacent vertical markets.”
Significant highlights in the Second Quarter included:
- Announced the appointment of David Buffett as President and CEO.
- Added many new key multi-location customers including La Vie En Rose, Danier Leather, 7-11, IBM Canada and Brown Shoes.
- Continued the roll out of existing high value customers including Wal-Mart and Black’s Photo.
- Continued to generate gross margins above 50% by selling best in class products and services to the SME market.
- Improved EBITDA by over $500,000 compared to Q2-2005 and established three consecutive quarters of positive EBITDA.
- Continued to generate positive cash flow from operations.
- Completed the disposition of the Professional Services Business.
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 June 30, 2006 on Thursday, August 10, 2006, at 1:30 p.m. PDT (4:30 p.m. EDT). Access to the call may be obtained by calling the operator at 1-866-400-2280 (Toll Free North America), or 1-416-850-9143 (International) 10 minutes prior to the scheduled start time. A playback version of the call will be available for 7 days after the call at 1-800-374-8789 (Toll Free North America) or 402-220-0893 (International). The passcode for the playback is 4201045. The audio web cast will be archived for replay on Radiant's web site at www.radiant.net.
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