iWeb Reports 75% Revenue Growth
Supplier of Net hosting services and IT infrastructure, iWeb, has released its financial results for the quarter ending June thirty, 2009. Eric Chouinard, iWeb President and Chairperson added, ”Growth remains our concern, particularly in this economic situation. Having said that, our investors will be pleased to see indications of profitability on both EBITDA and operating income.
Martin Leclair, President, Products and Technologies offered, ”Clients are adopting new technologies at the same rate as they were 12 months gone. we are noticing a more controlled approach to cost management from our clients, who are dropping certain services which they weren’t using at length. Experimental projects are a little smaller, which is ordinary in the present business context.
We are working with our clients to optimize their infrastructure so they can continue innovating. Philip Tousignant, Chief Finance Officer mentioned ”Two vital points toward highlight are that income keep growing and EBITDA is kept above 25% of money. Granted, this is the 1st time that iWeb’s net profit has passed the 1 M$ mark, but that figure is unproven, like the losses reported during the past 2 quarters were. Forex fluctuations affect the accounting price of a large portion of our long term debt.
Operating income stays positive at over 230,000 $, providing a miles better idea of the firm’s performance, with no regard for market conditions. Money for quarter 3 finished June thirty, 2009 increased by $3.1 million or 75%, compared to the same period of 2008, to reach just about $7.2 million.
Earnings for the 3rd quarter of economic 2009 originated from iWeb’s 3 main service offerings as the following : Dedicated servers accounted for 85%, followed by 9% for co-location services and 6% for the shared web hosting. 78% of iWeb money for the quarter were generated in US bucks, a major advantage for the Company in the last quarter and since the start of the year. Compared to the same period 12 months back, currency fluctuations between the Canadian greenback and the US buck had a positive impact of $950 000 on earnings. Without taking into consideration this impact, money still would have risen by 52% compared to the period finished on June thirty, 2008. Gross profit was 47% of earnings for Q3 of 2009, compared to 49% for a similar period of the year before.
In the past quarter, the favourable impact of the modification of Canada / US exchange rates on the gross profit markup was more than compensated by higher payroll costs to support the sustained and fast expansion of the corporation’s operations. Operating costs for the quarter went from 48.6% of income in 2008 to 43.3% in 2009. This improvement is explained by lower costs for selling and executive costs compared to the money they generate, though compensated by a rise in interest costs. Executive costs reduced from 24.2% to 17.7% of income for the quarter.
Interest costs increased significantly, from 7.1% to 9.6% of revenues for quarter three. This is due to the rise in long term debt to support the crucial increase in the corporation’s infrastructures, the larger part of which carry interests in US currency. IWeb’s operating revenue for quarter three was $231,000, compared to $21,000 for quarter 3 of 2008.
The other money costs represent elements which are the consequence of external market conditions. These costs surpassed $1M for the period ended June thirty, 2009. The most significant part of these costs is the unrealized exchange loss on the long-term debt of $10 million US. At the end of quarter stopped June thirty, 2009, the Canada / US exchange rate was 1.16, compared to 1.26 for the start of quarter, which explains the unrealized gain of $977,000.
Taking into account the impact of the other finance costs, the Company recorded a net profit of $1,023,000 for Q3 of 2009, compared against a net salary of $13,000 12 months earlier, for the period finished June thirty, 2008. IWeb is a global provider of Web hosting services and IT Infrastructure, with 3 secure info centers in Montreal.
Since 2004, the organization’s compounded yearly rate of growth has been above 75%, making it one of Canada’s 100 swiftest growing corporations according to PROFIT Mag . Set up in 1996 in Montreal, iWeb now generates more than 60% of its money from abroad ; and employs over 170 fulltime workers providing Dedicated Server Hosting, Co-location and Web Hosting services to over 21,000 clients in 150 states. IWeb’s shares are listed on the TSX Venture Exchange ( TSX-V : IWB ).
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