Business
TeraGo Announces Record Quarterly Revenue with Year over Year Growth of 22% in the Third Quarter of 2008
EBITDA shows significant sequential improvement TORONTO, Nov. 12 /CNW/ - TeraGo Inc. (TSX: TGO) t...
About this update from Terago Inc.
[{"type":"text","content":"\n\n\n\nEBITDA shows significant sequential improvement\n\n\nTORONTO, Nov. 12 /CNW/ - TeraGo Inc. (TSX: TGO) today announced financial\nand operating results for the third quarter ended September 30, 2008.\n\n\nThird Quarter 2008 Highlights\n\n- Total revenue for the quarter was $7.9 million, an increase of 22%\n over the third quarter of 2007\n- EBITDA(x) was $(0.1) million in the third quarter, compared to\n $0.2 million a year earlier, and $(0.7) million in the previous\n quarter\n- Net customer locations added in the quarter were 169 compared to 163\n in the third quarter of 2007\n- Average monthly churn rate(x) for the quarter was 1.17% compared to\n 0.86% in the third quarter of 2007\n- ARPU(x) for the quarter was $599 compared to $596 in the third\n quarter of 2007, an increase of 1%\n- 4,382 customer locations in service as at September 30, 2008, an\n increase of 22% from a year earlier\n\n\n"We are pleased to report another quarter of double digit revenue\ngrowth," said Bryan Boyd, President and CEO, TeraGo Inc. "TeraGo has launched\nservice in 11 new markets since our IPO in 2007, most recently in Abbotsford,\nBC and Ottawa, ON, and having completed that investment, our focus will\ncontinue to be on driving growth within our existing 42 markets. In line with\nour expectations, we realized a $650,000 improvement in EBITDA in the third\nquarter compared to the second quarter as a result of prudent cost management\nand revenue growth. Continued improvement in EBITDA and maintaining a fully\nfunded business plan remain top priorities for us."\n\n\nKey Financial & Operational Highlights\n(All financial results are in thousands, except ARPU and loss per share)\n\n Three months ended September 30\n 2008 2007\n --------------------------------\n (Unaudited) (Unaudited)\nFinancial\nRevenue $7,863 $6,449\nGross profit margin 74% 76%\nEBITDA(x) $(62) $214\nIncome (loss) from operations $(2,697) $(1,929)\nNet loss $(2,557) $(1,489)\nLoss per share $(0.23) $(0.13)\n\nOperating\nChurn rate(x) 1.17% 0.86%\nCustomer locations in service 4,382 3,582\nARPU(x) $599 $596\nNumber of employees 183 151\n\n(x) See Non-GAAP Measures below\n\n\nResults of Operations\n\n\nTeraGo's total revenue for the three-month period ended September 30,\n2008 was $7.9 million, an increase of 22% compared to $6.4 million of revenue\nge...