Business
TeraGo Announces Record Quarterly Revenue with Year over Year Growth of 21% in the First Quarter of 2009
Company delivers significant sequential improvement in EBITDA in Q1 TORONTO, May 6 /CNW/ - TeraGo...
About this update from Terago Inc.
[{"type":"text","content":"\n\n\n\nCompany delivers significant sequential improvement in EBITDA in Q1\n\n\nTORONTO, May 6 /CNW/ - TeraGo Inc. (TSX: TGO) today announced financial\nand operating results for the first quarter ended March 31, 2009.\n\n\nFinancial and Operational Highlights\n\n- Total revenue for the quarter was $8.6 million, an increase of 21%\n over the first quarter of 2008. Service revenues, the majority of\n which are recurring in nature, comprised 97% of total revenue.\n- EBITDA(x) was $932 thousand in the first quarter of 2009, compared to\n $(221) thousand a year earlier.\n- Second consecutive quarter of positive EBITDA following EBITDA of $597\n thousand in Q4 2008.\n- Added 266 gross customer locations, compared to 283 a year earlier,\n representing 95% of prior year levels despite a challenging economy.\n- Ended the quarter with 4,590 customer locations in service as at\n March 31, 2009, an increase of 16% compared to 3,971 customer\n locations in service as at March 31, 2008.\n- Approximately 83% of new customers signed contracts with terms of\n three years or more in Q1 2009, compared to 70% in Q1 2008.\n- Average monthly churn rate(x) for Q1 2009 was 1.43% compared to 0.76%\n in the first quarter of 2008.\n- ARPU(x) for Q1 2009 was $609 compared to $603 in the first quarter of\n 2008, an increase of 1%.\n- An Industry Canada decision released in March, 2009, resulted in the\n granting of a five-year extension to the initial term of the 24 and 38\n GHz licences held by the Company. In the decision, the Department\n waived its proposed annual licensing fee during the extension period.\n- The Company completed the implementation of a National Multiprotocol\n Label Switching (MPLS) backbone network. In subsequent quarters, the\n Company expects to realize benefits in terms of improved operation\n efficiencies and service levels for customers as a result of this\n investment.\n\n\n"We delivered material sequential improvement in EBITDA for the third\nconsecutive quarter, positive EBITDA for the second consecutive quarter, and\nmaintained a double digit revenue growth rate despite the ongoing challenges\nin the broader economy," said Bryan Boyd, President and CEO, TeraGo Inc. "Our\npriority in 2009 will be to continue to increase EBITDA as we balance growth\nwith prudent management of our cash resources."\n\n\nKey...