Business
Terago announces second quarter results
Terago announces second quarter results.
About this update from Terago Inc.
[{"type":"text","content":"\n\n\n\nStrong growth in existing markets increases revenues\n\n\nTORONTO, Aug. 14 /CNW/ - TeraGo Inc. (TSX: TGO) today announced its\nresults for the second quarter ended June 30, 2007.\n\n\nQuarterly Highlights:\n\n - Closed $50-million initial public offering and TSX listing on\n June 26, 2007\n - Record revenue of $6.1 million, up 27% year-over-year and our 25th\n consecutive quarter of revenue growth\n - Record number of customer locations in service to 3,419, an increase\n of 21% year-over-year\n - In the quarter, 278 gross customer additions with more than 70% of\n new customers signing three-year service agreements\n - ARPU(x) increased 5% year-over-year to $589\n - Churn rate(x) of 0.9% an improvement from 1.1% churn rate in Q2 2006\n\n(x) See Non-GAAP Measures\n\n\n"TeraGo's results for the second quarter continues our record of\nconsecutive quarterly revenue increases, based on strong organic growth of new\ncustomers," said Bryan Boyd, President and CEO. "During the quarter, our\ninitial quarter as a public company, our sales and customer support teams were\nexpanded to serve growing markets. We extended service offerings in selected\nestablished locations, such as the Kitchener-Waterloo region in Ontario. So\nfar this year, we have launched service in Vancouver, as well as Richmond,\nB.C., Red Deer, Alberta and Newmarket, Ontario."\n\n\n"TeraGo has a highly efficient business model with strong recurring\nrevenues and compelling customer economics. More Canadian businesses are\nrecognizing our value proposition as a clear alternative for reliable,\nhigh-performance broadband service. With a fully funded business plan, and\napplying the proceeds of our IPO, we are accelerating our pace of strategic\ngrowth, and increasing the numbers of customers and locations in service\nacross our designated geographic markets in Canada," said Mr. Boyd.\n\n\nRESULTS OF OPERATIONS\n\nKey Financial and Operating Highlights\n(All financial figures are in thousands, unless otherwise stated,\nwith the exception of loss per share)\n\n Three months Six months\n ended June 30 ended June 30\n ------------------- -------------------\n 2007 2006 2007 2006\n ------------------- -------------------\n (Unaudited) (Unaudited)\n\nFinancial\n Revenue $6,075 $4,782 $11,856 $9,295\n Gross margin % 77% 81% 78% 80%\n EBITDA(...