Business
IP Applications high growth customers driving results
IP Applications high growth customers driving results.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, July 12 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) is\npleased to provide this business update to inform shareholders about\ndevelopments at the company.\nDuring the second quarter of the year, IP Applications continued to focus\non the profitability of the business. While the underlying trend in the\ncompany's recurring revenues has been relatively flat for the last nine\nmonths, the mix of business has changed. IP Applications has a core of fast\ngrowing customers whose contributions to the company's revenues have increased\nmore than fifty percent since December 2005. These customers now make up forty\npercent of IP Applications' revenue base.\nThese growing revenue streams are also creating the opportunity for the\ncompany to achieve better economies of scale. The shift in the revenue mix and\nthe ongoing focus on cost management supports the company's goal of achieving\npositive cash flow from operations.\nPreviously announced contracts that were expected to add recurring\nrevenue starting in the second quarter were substantially in place by the end\nof June, and are expected to affect results beginning in the third quarter.\nTwo contracts also ended during the quarter reducing monthly recurring revenue\nby approximately $20,000. The company also experienced lower one-time\ndevelopment revenue.\nJohn Jacobson, President and CEO of IP Applications Corp., said \"We're\npleased with the development of the business and of course we're very\nencouraged by the growth that some of our customers are experiencing. Some\nrepresent new business models that are changing the way their industries work,\nwhile others are taking a new approach to more traditional markets like\ndial-up internet services. The common factor is that they're building\nfast-growing businesses around IP Applications core services and products.\"\n\nAbout IP Applications\n\nIP Applications Corp. is uniquely positioned to serve companies that are\nbringing online products, services, content, and internet access to market. IP\nApplications provides a flexible combination of technology, systems and\nexpertise for customers who have identified channels and products but who lack\nthe delivery and support capabilities. IP Applications' integrated Operational\nSupport System, Help Desk and Network Monitoring Systems dramatically reduce\nthe cos...