TeraGo Announces Record EBITDA of $1.2 million in the Second Quarter of 2009

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[{"type":"text","content":"\n\n\n\nCompany delivers record revenue in the second quarter\n\n\nTORONTO, Aug. 12 /CNW/ - TeraGo Inc. (TSX: TGO) today announced financial\nand operating results for the second quarter ended June 30, 2009.\n\n\nFinancial and Operational Highlights\n\n- Total revenue for the quarter was $8.6 million, an increase of\n 13% over the second quarter of 2008.\n- EBITDA(x) was $1.2 million in the second quarter of 2009, an\n improvement of $2.0 million compared to $(720) thousand a year\n earlier. EBITDA was the highest in Company history, and represented\n the fourth consecutive quarter of sequential improvement.\n- ARPU(x) for Q2 2009 was $614 compared to $604 in the second quarter\n of 2008, an increase of 2%.\n- Added 198 gross customer locations, despite the challenging economic\n environment.\n- Average monthly churn rate for the three months ended June 30, 2009\n declined to 1.35% compared to 1.43% for the first quarter of 2009.\n Churn for the three months ended June 30, 2008 was 0.94%.\n- Approximately 79% of new customers signed contracts with terms of\n three years or more in Q2 2009, compared to 75% in Q2 2008.\n- Ended the quarter with 4,600 customer locations in service, an\n increase of 9% compared to 4,213 customer locations in service as at\n June 30, 2008.\n- Business plan remains fully funded with $8.9 million of cash, cash\n equivalents and short term investments as at June 30, 2009, a\n decrease of $1.0 million from March 31, 2009 compared to a decrease\n of $4.0 million for the same period in 2008.\n- TeraGo was selected by a new Advanced Wireless Services ("AWS")\n wireless entrant to provide wireless backhaul services. The value of\n this initial contract is not considered material to the Company in\n 2009. The Company is investing to further develop and pursue\n additional opportunities with this provider and other new wireless\n entrants.\n\n\n"In the second quarter we accomplished our primary objectives of growing\nrevenue, improving EBITDA, and preserving our cash resources," said Bryan\nBoyd, President and CEO, TeraGo Inc. "I believe our success on all these\ncounts during a time of economic difficulty demonstrates the strength of our\nbusiness model and positions us well to further accelerate growth when a\nbroader recovery is underway."\n\n\nKey Financial & Operational H...

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