Hostopia Reports 42% Rise in Operating Income on Record Third Quarter Revenue

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[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON and FT. LAUDERDALE, FL, Feb. 11 /CNW/ - Hostopia.com Inc.\n(TSX: H), a leading provider of web services that enable small and\nmedium-sized businesses to establish and maintain an Internet presence, today\nreported its unaudited financial results for the third quarter ended\nDecember 31, 2007. All figures are in U.S. dollars unless otherwise stated.\n\n\nHighlights\n\n\n- Q3 revenue increased 29.8% year over year; 7.1% sequentially from Q2\n- 31st consecutive quarter of increasing revenue\n- 17th consecutive quarter of positive operating income\n- Announced the launch of new Nexthaus mobile data synchronization\n applications\n- Closed 9 new customer contracts for web services, templates and mobile\n sync services\n- Added 8,000 end users\n\n\n"We are pleased with our continued sequential revenue growth and the\ndemonstrated earnings leverage our increased revenues bring," said Colin\nCampbell, Hostopia's CEO. "The Company showed strong revenue growth driven by\nthe record 28,000 end user accounts we migrated onto our platform in the\nprevious quarter and the net addition of a further 8,000 end users this\nquarter. The large end user increase year to date, combined with our backlog\nof website and email migrations, should result in a further improvement in our\noperating results over the remainder of the year."\n\n\nFinancial Results for the Third Quarter of Fiscal 2008\n\n\nRevenues increased 29.8% to $7.3 million in the three months ended\nDecember 31, 2007, compared to the same period last year. This was the 31st\nconsecutive quarter of higher revenues. Sequential revenue growth of 7.1% in\nthe third quarter was primarily due to the migration of 28,000 end users onto\nthe Hostopia platform in the previous quarter as well as the net addition of\n8,000 end users this quarter. Two website template license contracts also\ncontributed to the sequential revenue growth.\n\n\nGross profit of $6.3 million increased by $1.4 million compared to last\nyear. Income before interest and income taxes was $643,000 up $189,000,\ncompared to the third quarter of last year. This 42% increase in income before\ninterest and income taxes was tempered by the $1.2 million increase in\noperating expenses resulting primarily from: (1) personnel costs associated\nwith two new start-up units within Hostopia: We...

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