Business
TeraGo Announces Record Quarterly Revenue with Year over Year Growth of 26% in the Second Quarter of 2008
Growth driven by record net customer additions TORONTO, Aug. 6 /CNW/ - TeraGo Inc. (TSX: TGO) tod...
About this update from Terago Inc.
[{"type":"text","content":"\n\n\n\nGrowth driven by record net customer additions\n\n\nTORONTO, Aug. 6 /CNW/ - TeraGo Inc. (TSX: TGO) today announced financial\nand operating results for the second quarter ended June 30, 2008.\n\n\nSecond Quarter 2008 Highlights\n\n- Total revenue for the quarter was $7.6 million, an increase of 26%\n over the second quarter of 2007\n- 242 net customer locations added in the quarter, an increase of 32%\n over the second quarter of 2007\n- Average monthly churn rate(x) for the quarter was flat at 0.94%\n compared to the second quarter of 2007\n- ARPU(x) for the quarter was $604 compared to $589 in the second\n quarter of 2007, an increase of 3%\n- 4,213 customer locations in service as at June 30, 2008, an increase\n of 23% from a year earlier\n\n\n"Our pattern of consistent growth demonstrates the strength of demand for\nour wireless broadband services across the country," said Bryan Boyd,\nPresident and CEO, TeraGo Inc. "The investments we have made in both our\nnetwork and our sales and operations teams are yielding positive results as\nreflected in our record operational performance, in particular, a 25%\nsequential acceleration of net customer additions in the quarter. While\nchallenges lie ahead, I expect improved EBITDA performance beginning in the\nthird quarter of this year as we continue to grow our subscriber base."\n\n\nKey Financial & Operational Highlights\n\n(All financial results are in thousands, except ARPU and loss per share)\n\n Three months ended June 30\n 2008 2007\n ---------------------------\n (Unaudited) (Unaudited)\nFinancial\nRevenue $ 7,636 $ 6,076\nGross profit margin 75% 77%\nEBITDA(x) $ (720) $ 446\nIncome (loss) from operations $(3,053) $ (783)\nNet loss $(2,864) $(1,367)\nLoss per share $ (0.26) $ (0.21)\n\nOperating\nChurn rate(x) 0.94% 0.94%\nCustomer locations in service 4,213 3,419\nARPU(x) $ 604 $ 589\nNumber of employees 189 129\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 June 30, 2008 was\n$7.6 million, an increase of 26% compared to $6.1 million of revenue generated\nin the second quarter of 2007. The increase in revenue is primarily the result\nof a greater number of customer locations in service, as well as existing\ncustomers upgrading their Internet and data connections and ad...