Business
Hostopia reports first quarter results to June 30, 2007
Hostopia reports first quarter results to June 30, 2007.
About this update from Pure Energy Minerals Ltd.
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON and FT. LAUDERDALE, FL, Aug. 13 /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 first quarter ended June 30,\n2007. All figures are in U.S. dollars unless otherwise stated.\n\n\nHighlights\n\n- Q1 revenue increased 15.9% year over year, 6.8% sequentially from Q4\n- 29th consecutive quarter of increasing revenue\n- 15th consecutive quarter of positive operating income\n- Acquired leading wireless syncing technology from Nexthaus, Inc.\n- Added 3,000 end users and 375,000 email accounts\n- Subsequent to the end of the quarter, entered into a patent license\n agreement with j2 Global Communications, Inc. for fax-to-email\n services.\n\n\n"We are pleased with our first quarter financial and operational\nresults," said Colin Campbell, Hostopia's CEO. "The company showed good\nrevenue growth, driven by the 375,000 email accounts we migrated in the\nquarter. Operationally we also made significant progress preparing for a very\nlarge United Kingdom website migration that will be largely completed in our\nsecond quarter. These migrations on their completion will help accelerate our\nrevenue growth and improve our profitability over the remainder of the year."\n\n\nFinancial Results for the First Quarter of Fiscal 2008\n\n\nRevenues increased 15.9% to $6.3 million in the three months ended June\n30, 2007, compared to the same period last year. This was the 29th consecutive\nquarter of higher revenues. Sequential revenue growth of 6.8% in the first\nquarter was primarily due to the migration of 375,000 email accounts onto the\nHostopia platform, as well as website end-user growth from existing and new\ncustomers.\n\n\nIn the first quarter, gross profit of $5.4 million increased by $660,000\ncompared to last year as higher revenues were partially offset by a 1.5%\ndecline in gross margin. Income before interest and income taxes was $385,000,\ndown $411,000 from the first quarter of last year. This decrease was due to a\n$1.1 million increase in operating expenses resulting primarily from:\n(1) increased personnel to develop the new revenue opportunities of Website\nExperts and the Nexthaus syncing technology that are still in...