Business
TeraGo Announces Record Revenue with Growth of 26% in Fiscal 2007
Growth driven by new customer additions and expansion into 13 new markets TORONTO, March 4 /CNW/ ...
About this update from Terago Inc.
[{"type":"text","content":"\n\n\n\nGrowth driven by new customer additions and expansion into 13 new markets\n\n\nTORONTO, March 4 /CNW/ - TeraGo Inc. (TSX: TGO) today announced financial\nand operating results for the fourth quarter and fiscal year ended\nDecember 31, 2007.\n\n\n2007 Highlights\n\n- Revenue for 2007 was $25.1 million, an increase of 26% over 2006\n- ARPU(x) for 2007 was $594 compared to $568 in 2006, an increase of 5%\n- 3,777 customer locations in service as at year end 2007, an increase\n of 24% over 2006\n- Average monthly churn rate(x) for 2007 of 0.92% compared to 1.08% in\n 2006, a 17% improvement\n- Closed initial public offering (IPO) for gross proceeds of\n $50 million and completed TSX listing in June 2007\n- Company is debt-free after retiring US $9.35 million of short- and\n long-term debt following the IPO\n- Expanded service offering to 13 new markets during the year\n- Expanded sales & marketing and customer support teams\n\n\n"In 2007, TeraGo delivered on some very important objectives that have\nset the stage for our continued growth. The funds raised through our IPO have\nenabled us to increase our national footprint to 40 markets across Canada and\nexpand our sales and support teams," said Bryan Boyd, President and CEO,\nTeraGo Networks Inc. "We had a strong finish to the year, establishing a\nrecord in the fourth quarter for new customer additions and increasing our\nARPU."\n\n\nMr. Boyd continued: "We continue to see a tremendous opportunity in the\nbroadband market. Our priority for 2008 is execution. We will continue to\nexpand into areas in need of high performance broadband technology and build\nour customer concentration in existing markets. We expect our EBITDA to begin\nto increase in the third and fourth quarters of 2008 as we start to leverage\nour investment in headcount and as our revenue continues to grow."\n\n\nKey Financial & Operation Highlights\n\n(All financial results are in thousands, except ARPU and loss per share)\n\n Three months Year\n Ended December 31 Ended December 31\n 2007 2006 2007 2006\n ------------------------ ------------------------\n (Unaudited) (Unaudited) (Audited) (Audited)\nFinancial\nRevenue $ 6,815 $ 5,535 $25,120 $19,917\nGross profit margin % 74.6% 82.0% 76.7% 80.6%\nEBITDA(x) $ 8 $ 922 $1,474 $3,693\nIncome (loss) from\n operations $(2,...