November 15, 2007
Radiant Communications Announces Record Revenue, Profits and Operating Cash Flow for the Third Quarter
11.0% quarterly revenue growth with record earnings and cash flow
November 15, 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 third quarter and nine months ended September 30, 2007.
HIGHLIGHTS:
• Record quarterly revenue of $5.5 million increased by 11.0% compared to the third quarter of 2006.
• Year-to-date revenue of $16.0 million increased 11.3% over the comparable period in 2006.
• Quarterly gross margin was 51.6% and 50.0% for the nine month period.
• In the first nine months of 2007 Radiant recorded EBITDA of $1.2 million which is a 51% increase over the prior year (see EBITDA section for reconciliation to GAAP).
• Quarterly cash flow from operations and working capital changes was $775,122.
• Radiant ended the period with cash and short-term investments of $3.0 million compared with ending cash and short-term investments of $2.7 million as at December 31, 2006.
• With over 85% of recurring revenue denominated in Canadian currency, Radiant is well protected from the recent appreciation of the Canadian dollar.
• During the third quarter Radiant continued to upgrade its backbone and private networking capability and formally announced its TriplePlay VPN in October.
• In Q3 Radiant finalized the initial version of AlwaysThere™ hosted Exchange® which was announced as a new product in October.
• Radiant negotiated a wholesale services agreement for the supply of broadband connectivity to the Canadian locations of one of the world’s largest telecommunication services providers.
“Our third quarter results are evidence that we are delivering growth, and strong financial results while investing in new product development,” said David Buffett, President and CEO of Radiant. "The Radiant team has brought several new customers online and developed and launched new services while maintaining industry leading margins. Our focus on Always-on Service is reflected in consistent quarter over quarter improvements based on independent third party customer surveys. EBITDA has grown by more than 50% year over year, and achieving a positive bottom line for the quarter is a strong indicator that Radiant has reached a scalable critical mass where revenue growth drives cash flow and profits. We recently announced the availability of both TriplePlay VPN™ and AlwaysThere™ Hosted Exchange®. These products have been developed in-house and have been funded by operating cash flows. We believe there is a large market opportunity and strong demand for these solutions in our existing customer base and in adjacent vertical markets that are currently underserved."
AlwaysThere hosted Exchange is a new email solution recently announced by Radiant using new technologies -- grid computing, virtualization from VMware, and highly scalable storage area networks -- to design the optimal platform for hosting Microsoft Exchange®. By running a separate virtual instance of Exchange for each client in secure data centres, the client has all the flexibility and control of running Exchange on his own equipment, but without worrying about business continuity, redundant servers, and backups. Radiant’s AlwaysThere hosting is the most cost effective, reliable and secure way for companies with 10-500 e-mail users to enjoy the enterprise messaging and collaboration benefits of Exchange. Radiant architected this solution specifically to address the needs of SME’s for business continuity and e-mail archiving.
Additional details on the 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.
Radiant will hold a conference call to discuss its results for the quarter ended September 30, 2007 on November 16, 2007, at 10:00 a.m. PST (1:00 p.m. EST). 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 884495. The audio web cast will be archived for replay on Radiant's web site at www.radiant.net.
Click here to view remaining Press Release and Financial Statements
|
