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Attention Business/Financial Editors
iWeb Reports Fiscal 2008 Second Quarter Result - 56% increase in revenues - 71% increase in EBITDA
MONTREAL, May 13 /CNW Telbec/ - iWeb Group Inc. (TSX-V: IWB) ("iWeb" or
the "Company"), a worldwide internet hosting infrastructure provider,
announces its financial results for the second quarter of fiscal 2008 ended
March 31, 2008. All results are reported in Canadian dollars unless otherwise
stated. The Company's full interim financial statements and MD&A will be
available at www.iweb.com and www.sedar.com.
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Q2-2008 Summary
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- 56% increase in revenues to $3.6 million for the quarter ended
March 31, 2008 compared to $2.3 million for the same period of 2007
- Adjusted EBITDA(1) of $0.8 million for the second quarter, a 71%
increase over the same period of fiscal 2007
- Company's new website is now on-line: iweb.com
- Completion of work on phase 3 of Couture data center
- Completion of work on phase 1 of Nuns' Island data center, and
installation of first customers
"Our financial results show once again a steady growth in revenues and
adjusted EBITDA" comments Martin Leclair, Vice-President and Chief Operating
Officer of iWeb. "Everything seems to indicate that our growth will continue:
the occupancy rate of our principal data center for dedicated servers is
quickly increasing and we will soon begin the work on the last phase for that
site; phase one of work of our new co-location data center of Nuns' Island is
almost completed and we already welcomed our first customers; our new website
under the domain name iweb.com is now on-line and features additional products
and functionalities, and we can already notice that it had a positive impact
on the number of visits on our website and on new recurring revenues.
Therefore, the current trend is very positive and explains our optimism over
our future growth."
Second Quarter of 2008 Financial Review
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Consolidated revenues of the second quarter ended March 31, 2008 were $3.6
million, compared to $2.3 million for the same period of 2007, an increase of
$1.3 million or an improvement of 56%. Without taking in account the impact of
the stronger Canadian dollar against the U.S. currency, growth in revenues
would have been even better since 75% of Company's revenues are generated in
U.S. dollars.
Gross profit margin for the quarter was 53%, compared to 56% for the
corresponding quarter of fiscal 2007. This decrease is mainly explained by the
strength of the Canadian dollar against the U.S. currency. Contrary to
revenues, a great portion of cost of services sold is expensed in Canadian
dollars.
Operating expenses decreased to 52% of revenues for the second quarter of
2008, compared to 55% for the same period of last year. This improvement is
mainly explained by a better control on advertising expenses, and by interest
revenues generated by investments in term deposits coming from the net
proceeds from the issuance of shares of November 2007. These positive impacts
in operating expenses were partly reduced by higher stock-based compensation
expenses.
Adjusted EBITDA increased to $0.8 million, or 23% of revenues, for the
quarter ended March 31, 2008, compared to $0.5 million, or 21% of revenues for
the same three-month period of previous fiscal year, an improvement of 71%
year-over-year.
Net earnings remained nearly at the same level of the preceding year and
were $19,225 or $0.0007 per share for the quarter ended March 31, 2008,
compared to $21,710 or $0.0009 per share for the same period one year-ago.
Selected Financial Information
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Second quarter ended
March 31
2008 2007
Revenues $3,574,627 $2,290,877
Gross profit $1,896,807 $1,281,904
Net earnings $19,225 $21,710
Earnings per share - basic $0.0007 $0.0009
Adjusted EBITDA(1) $837,976 $489,144
Total assets $21,516,345 *$14,788,031
Shareholders' equity $5,814,903 *$1,957,453
Cash and term deposits $2,287,568 *$844,456
*As at September 30, 2007
1- The Company defines Adjusted EBITDA as Earnings before interest,
taxes, depreciation and amortization and stock based compensation.
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About iWeb Group Inc.
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Founded in 1996, iWeb is today one of the leading Canadian providers of
advanced IP hosting services either through shared hosting, dedicated servers
or co-location in three data centers, featuring over 52,000 square feet of
floor space and the latest technological equipment. iWeb provides services in
English, French and Spanish to more than 13,000 clients from more than 135
countries. For more information, please visit the Company's website at
www.iweb.com.
Caution concerning forward-looking statements
---------------------------------------------
This news release contains certain forward-looking statements. These
statements relate to future events or iWeb's future economic performance and
reflect the current assumptions and expectations of management. Certain
unknown factors may affect the events, economic performance and results of
operations. iWeb undertakes no obligation, and does not intend to, update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable law.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
-30-
/For further information: Marc Guindon, Vice-President and Chief
Financial Officer, iWeb Group Inc., (514) 286-4242 ext. 121, mg@iweb.com;
Olivier Niquet, Communications officer, iWeb Group Inc., (514) 286-4242 ext.
192, oniquet@iweb.com/
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