Business
IP Applications Corp. Achieves Positive EBITDA in the First Quarter of 2007
IP Applications Corp. Achieves Positive EBITDA in the First Quarter of 2007.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\nVANCOUVER, May 24 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today\nannounced its quarterly results for the period ended March 31, 2007.\n\n\nFor the quarter ended March 31, 2007 revenue was $2.1 million compared to\n$2.4 million in the corresponding period in 2006. The net loss decreased to\n$(0.2) million from $(0.4) million. EBITDA gain was $0.03 million, a\nsignificant improvement from $(0.01) million in the corresponding quarter in\n2006 and represents a major milestone as the first positive EBITDA in over\nseven years.\n\n\nJohn Jacobson, President and CEO said, "We recently announced that we had\ncut our EBITDA loss by more than half in 2006 compared with 2005. Needless to\nsay, we're very pleased to follow that announcement with positive EBITDA in\nthe first quarter of 2007. Achieving positive EBITDA is a major milestone on\nour path to building IP Applications into a platform for future growth. We're\ncontinuing to work on efficiencies and new business opportunities to get the\ncompany moving into a growth phase."\n\n\nAchievements in the first quarter of 2007\n\n- During the first quarter of 2007, the Company achieved EBITDA of\n $25,258. This is the first time the Company has reported positive\n EBITDA in a quarter in over 7 years, and is the result of our\n continued focus on operational efficiencies.\n\n- Gross margin of 47% for the quarter ended March 31, 2007, is an\n increase over the 45% recorded during the three months ended\n March 31, 2006.\n\n- Operating expenses of $1.2 million for the quarter ended March 31,\n 2007, represent a 20% reduction from the $1.5 million incurred during\n the three months ended March 31, 2006.\n\n- Net loss for the quarter ended March 31 improved 50% to $0.2 million\n in 2007 from $0.4 million in 2006.\n\n- In March 2007, the Company entered into a revolving line of credit\n facility with a major Canadian chartered bank. The maximum borrowing\n limit of $400,000 is backed by a fixed and floating charge against\n assets.\n\n\nNon-GAAP measures\n\n\nEBITDA is a key measure used by management to evaluate the Company's\nperformance. Management believes that EBITDA is useful as it provides an\nindication of the results generated by the Company's business activities prior\nto taking into consideration how those activities are financed and taxed and\nalso prior to...