Business
IP Applications Corp. reports operating results for the third quarter of 2006
IP Applications Corp. reports operating results for the third quarter of 2006.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Nov. 29 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today\nannounced results for the third quarter and the nine-month period ended\nSeptember 30, 2006.\nQuarterly revenue increased 6% to $2.4 million compared with the same\nquarter in 2005. The loss for the quarter was $472,194 or $0.03 per share\n(basic) compared with a loss of $835,974 or $0.06 per share for the same\nperiod in 2005. The Company reported an EBITDA loss of $48,538 compared with\nan EBITDA loss of $482,162 in the quarter ended September 30, 2005 and\n$211,461 in the quarter ended June 30, 2006 (EBITDA is a non-GAAP measure as\nexplained in detail below).\nRevenue for the nine-month period increased by 29% to $7.2 million as\ncompared to the corresponding period in 2005. The loss for the period was\n$1,522,814 or $0.10 per share (basic) compared with a loss of $1,871,126 or\n$0.16 per share for the same period in 2005. The EBITDA loss for the period\nwas $283,938, a substantial improvement over the EBITDA loss of $901,710 in\n2005.\nJohn Jacobson, President and CEO said \"IP Applications invested in three\nacquisitions in 2004 and 2005 which brought new customers and technologies.\nDuring the third quarter of 2006, we began the transition to the next phase of\nthe company's development. We're stabilizing the monthly recurring revenue\nstream and we're developing our own branded products to start generating new\nbusiness for the Company in 2007. The recent addition of Vice-President of\nOperations, Mr. Thomas Carter, will sustain our focus on operating\nefficiencies while we expand our product offerings and markets.\"\n\nAchievements during the period ended September 30, 2006:\n\nIn Q3, because of a substantial increase in demand for network service\nfrom existing customers, the Company began to rationalize its purchasing to\nimprove costs. The benefit of this rationalization process began to reduce\nchannel operating costs commencing in October 2006.\nAlthough the revenue through the first three quarters was relatively\nstable, the sources of revenue have shifted significantly. To improve\nlong-term stability, IP Applications has focused its attention on those\ncustomers whose contract revenue produces relatively higher margins and is\ngrowing, while re-structuring or terminating some whose revenue is declining\nor whose margins are rela...