Business
TeraGo Announces Record Quarterly Revenues with Year-over-Year Growth of 24% in First Quarter of 2008
Company also announces management change TORONTO, May 7 /CNW/ - TeraGo Inc. (TSX: TGO) today anno...
About this update from Terago Inc.
[{"type":"text","content":"\n\n\n\nCompany also announces management change\n\n\nTORONTO, May 7 /CNW/ - TeraGo Inc. (TSX: TGO) today announced financial\nand operating results for the first quarter ended March 31, 2008.\n\n\nFirst Quarter 2008 Highlights\n\n- Total revenue for the quarter was $7.1 million, an increase of 24%\n over the same period in 2007\n- ARPU(x) for the quarter was $603 compared to $590 in the\n first quarter of 2007, an increase of 2%\n- 3,971 customer locations in service as at March 31, 2008, an increase\n of 23% from a year earlier\n- Average monthly churn rate(x) of 0.76% compared to 1.00% in the\n first quarter of 2007, a 24% improvement\n\n"We are pleased to report record revenues after another quarter of solid\ndouble digit growth," said Bryan Boyd, President and CEO, TeraGo Inc. "We\nachieved record customer bookings in the quarter and added 194 net customers.\nWe continue to execute on the strategy communicated at the time of our IPO in\n2007, namely to increase customer penetration, and expand our wireless\nbroadband network and service offering."\n\n\nKey Financial & Operational Highlights\n(All financial results are in thousands, except ARPU and loss per share)\n\n Three months ended March 31\n 2008 2007\n ----------------------------\n (Unaudited) (Unaudited)\nFinancial\nRevenue $7,138 $5,780\nGross profit margin 75.3% 79.4%\nEBITDA(x) $(221) $807\nIncome (loss) from operations $(2,452) $(629)\nNet loss $(2,124) $(900)\nLoss per share $(0.19) $(0.14)\n\nOperating Metrics\nChurn rate(x) 0.76% 1.00%\nCustomer locations in service 3,971 3,236\nARPU(x) $603 $590\nNumber of employees 175 127\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 March 31, 2008\nwas $7.1 million, an increase of 24% compared to $5.8 million of revenues\ngenerated in the first quarter of 2007. The increase in revenue is primarily\nthe result of a greater number of customer locations in service, and existing\ncustomers upgrading their Internet and data connections and/or adding\nadditional service locations. Service revenues, which are recurring in nature,\ncomprised 98% of total revenues in the quarter, while installation revenue\nrepresented 2%.\n\n\nTotal customer locations in service reached 3,971 at March 31, 2008, an\nincrease of 735 net new location...