Radiant Communications Announces Record Revenue, EBITDA and Operating Cash Flow for the Second Quarter |
August 23, 2007
New customers generate 13.5% revenue growth with strong backlog of new orders
August 23, 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 second quarter and six months ended June 30, 2007.
HIGHLIGHTS:
• Record revenue of $5.4 million for the quarter increased by 13.5% compared to the second quarter of 2006.
• Revenue of $10.5 million year-to-date 2007 is up 11.5% over year-to-date 2006.
• Gross margin was 48.5% for the quarter and 49.2% for the six month period.
• In the first half of 2007 Radiant recorded EBITDA of $571,453 (see EBITDA section for reconciliation to GAAP).
• Radiant generated $256,849 of positive cash flow from operations in the quarter.
• Radiant ended the period with cash and short-term investments of $2.6 million compared with ending cash and short-term investments of $2.7 million as at December 31, 2006.
• During the second quarter Radiant continued to upgrade its backbone and private networking capability in response to customer demand for secure VPNs and business quality digital voice.
• In Q2 Radiant entered orders for more than 1000 new locations for new and existing customers such as 7-Eleven, Payless Shoes, First Ontario Credit Union, VANCO, Vanguard, HDS Retail and Dollarama.
• Radiant signed its first commercial digital voice customers and experienced significant growth in the VoIP prospect funnel.
“We are very pleased with the second quarter results”, said David Buffett, President and CEO of Radiant."In addition to the significant growth in revenue and operating cash flow we are seeing many of our existing customers expand their relationship with Radiant by purchasing upgraded services. Multi-location businesses are facing an increasing IT burden with respect to the requirements for security of communications and data processing. During the 2nd quarter we completed the deployment of our MPLS, (Multi-Protocol Label Switching), based private network and we are now beta testing with key customers. The funnel of qualified prospects for our Digital Voice solution continued to grow. We fully expect that as we roll out these new services and products we will continue to attract new business from our existing base and new customers seeking higher quality solutions and customer care."
“On a much more somber note I am deeply saddened by the recent death of our former Chairman Chris Worthy”, said Mr. Buffett. “Chris provided strong leadership and guidance to Radiant during his tenure. He leaves a lasting legacy with our solid business foundation and his passing is a personal loss to all the employees and friends at Radiant who knew him. All of us at Radiant extend our sympathies and condolences to his family and friends”.
The Board of Directors approved the financial statements and related materials at a meeting on August 22. At this meeting Mr. Don Calder was elected as Chairman of the Board and 180,000 stock options were granted to Directors at a price of $1.00. “I am deeply saddened by the passing of Chris Worthy as both a friend and business associate”, said Mr. Calder. “I look forward to working with my fellow Board members and continuing the efforts initiated by Chris.”
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 June 30, 2007 on August 23, 2007, at 1:30 p.m. PDT (4:30 p.m. EDT). Access to the call may be obtained by calling the operator at 1-866-400-3310 (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 pass-code for the playback is 831083. The audio web cast will be archived for replay on Radiant's web site at www.radiant.net.
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