Radiant Communications Announces First Profitable Quarter |
November 7, 2006
Company records fourth consecutive quarter of positive EBITDA, positive cash flow from operations and net income in excess of $200,000 with 11% year over year growth
Radiant Communications Announces First Profitable Quarter Company records fourth consecutive quarter of positive EBITDA, positive cash flow from operations and net income in excess of $200,000 with 11% year over year growth November 7, 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 third quarter ended September 30, 2006.
• Net income of $214,418 compared to a net loss of $2.2 million in the third quarter of 2005.
• Revenue of $4.9 million increased by 11% compared to the third quarter of 2005.
• Operating expenses decreased by 12% compared to Q3-2005.
• The Company recorded its fourth consecutive quarter of positive EBITDA.
• Cash Flow from operations was positive for the third consecutive quarter.
“I am extremely pleased with our third quarter results” said David Buffett, President and CEO of Radiant. "Positive net income for the quarter clearly demonstrates the success of our efforts over the past year. With a secure and growing base of recurring revenue, Radiant's aggressive business strategy will continue to provide an attractive investment opportunity. The profitability of Radiant's core business will allow us to expand the solutions we offer our existing customers and expand into adjacent high growth markets by offering new services and solutions which we anticipate introducing in early 2007."
Significant highlights in the Third Quarter included:
• Added new key multi-location customers including Collega, Sprint Canada and HDS Retail.
• Continued the roll out and expansion of existing high value customers including La Vie En Rose, 7-11, Wal-Mart, Club Monaco and Brown Shoes.
• Announced the availability of new, high capacity T-1 and Ethernet based connectivity products from MTS Allstream Inc.
• Announced the launch of a national, managed, virtual private network for Black’s Photo Corp.
• Continued to generate industry leading gross margins above 50% by selling best in class products and services to the SME (Small and Medium Enterprise) market.
• Improved EBITDA by over $400,000 compared to Q3-2005 and established four consecutive quarters of positive EBITDA.
• Generated net income of $214,418 in the third quarter compared to a loss of $2.18 million in Q3 2005.
Additional details on both the financial year and third quarter results, including the Unaudited Financial Statements and Management Discussion and Analysis, will be made available at www.sedar.com under Radiant Communications Corp.
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