Business
IP Applications Corp. reports operating results for the second quarter of 2006
IP Applications Corp. reports operating results for the second quarter of 2006.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Aug. 29 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today\nannounced results for the second quarter and the six-month period ended\nJune 30, 2006.\nQuarterly revenue increased 36% to $2.3 million compared with the same\nquarter in 2005. The Company reported an EBITDA loss of $221,000 compared with\nan EBITDA loss of $90,000 in the quarter ended June 30, 2005. EBITDA is a\nnon-GAAP measure and is further described below.\nFor the six months ended June 30, 2006, revenue increased by 45% to\n$4.8 million as compared to the corresponding period in 2005. The loss for the\nperiod was $1.1 million or $0.07 per share (basic) compared with a loss of\n$1.0 million in 2005. The EBITDA loss for the period was $235,000, a\nsubstantial improvement over the EBITDA loss of $420,000 in 2005.\nJohn Jacobson, President & CEO, said, \"The second quarter results were\nimpacted by three key factors: i) we performed less paid development work in\nQ2 than in Q1; ii) two customers departed; and iii) we incurred significant\none-time setup costs when we began delivering network services to two\ncustomers. However, the lower revenue and increased costs for the quarter were\noffset somewhat by continued growth in revenue from several key customers.\nContinued growth from these key customers combined with elimination of\nour payables and accrued liabilities carried forward from 2005, leads us to\nexpect that both revenues and cash flow will improve in Q3.\nWe're also working with two of our key customers to enhance and expand\nour product offerings. The new business opportunities that flow from these new\nofferings are helping us to shape an exciting new vision and strategy for the\nCompany.\"\n\nAchievements during the period ended June 30, 2006:\n\n>\n\nThe Company also announces that Mr. Mark Sampson, former President and\nCEO of IP Applications, has resigned as a Director of the Company. The Board\nand management wish to thank Mr. Sampson for his leadership and contributions\nto the Company over the past three years.\n\nNon-GAAP measures\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 a...