Business
TeraGo Announces Record Revenue with Growth of 23% in Fiscal 2008
Company delivers significant sequential improvement in EBITDA in fourth quarter TORONTO, March 10...
About this update from Terago Inc.
[{"type":"text","content":"\n\n\n\nCompany delivers significant sequential improvement in EBITDA in fourth\nquarter\n\n\nTORONTO, March 10 /CNW/ - TeraGo Inc. (TSX: TGO) today announced\nfinancial and operating results for the fourth quarter and fiscal year ended\nDecember 31, 2008.\n\n\nFinancial and Operational Highlights\n\n- Total revenue of $31.0 million for 2008, an increase of 23% over\n fiscal 2007. Service revenues, the majority of which are recurring in\n nature, comprised 98% of total revenue. Total revenue for Q4 2008 was\n $8.3 million, an increase of 22% over the fourth quarter of 2007.\n- EBITDA(x) was $597 thousand for Q4 2008, compared to $8 thousand a\n year earlier, $(62) thousand in Q3 2008, and $(720) thousand in Q2\n 2008.\n- Added 745 net customer locations, ending the year with 4,522 customer\n locations in service as at December 31, 2008, an increase of 20% from\n 3,777 the prior year. Net customer locations grew by 140 in Q4,\n compared to 195 in the fourth quarter of 2007. Approximately 75% of\n new customers signed contracts with terms of three years or more in\n 2008.\n- Expanded service to the Nation's Capital in the fourth quarter, ending\n the year with a total of 42 markets including the six largest\n population centers in Canada.\n- Average monthly churn rate(x) for Q4 2008 was 1.12% compared to 0.87%\n in the fourth quarter of 2007.\n- ARPU(x) for Q4 2008 was $610 compared to $600 in the fourth quarter of\n 2007, an increase of 2%.\n\n\n"We maintained a solid revenue growth rate in the fourth quarter and also\ndelivered significant sequential improvement in EBITDA despite the economic\nslowdown," said Bryan Boyd, President and CEO, TeraGo Inc. "TeraGo is well\npositioned with a strong balance sheet having no debt and significant cash\nresources."\n\n\nKey Financial & Operational Highlights\n\n(All financial results are in thousands, except gross margin, loss per\nshare and operating metrics)\n\n Three Months Ended Year Ended\n December 31 December 31\n\n 2008 2007 2008 2007\n ------------------------ --------------------\n (Unaudited) (Unaudited) (Audited) (Audited)\nFinancial\nRevenue $8,342 $6,815 $30,979 $25,120\nGross profit margin % 73.6% 74.6% 74.4% 76.7%\nEBITDA(x) $597 $8 $(406) $1,474\nLoss from operations $(2,386) $(2,099) $(10,588) $(5,033)\nNet loss $(4,807) $(1,730) $(12,352) $(5,486)...