Axia Reports Results for the Quarter Ended September 30, 2012

CALGARY, Nov. 12, 2012 /CNW/ - Axia NetMedia Corporation (Axia) today reported its results for the quarter ended September 30, 2012.

Financial and Operating Highlights

  • Record NGN Services revenue of $17.0 million grew 15% over the prior year.  Total revenue for the quarter was $18.8 million, up 4% from $18.0 million a year ago.
  • EBITDA of $3.7 million, up 37% from $2.7 million a year ago.
  • EPS of $0.05, up from $0.02 a year ago.
  • Covage's NGN Services revenue grew 56% on a currency adjusted basis, to $11.6 million.  Axia's 50% proportionate view was $5.8 million.
  • Axia's share of OpenNet's net income totaled $2.2 million for the quarter compared to $0.2 million a year ago.

Financial Summary

($000s except per share amounts) Three Months ended Change
Sept 30,
2012
Sept 30,
2011
$ %
         
NGN Services revenue        16,984       14,823         2,161 15
Total revenue        18,761       17,997            764 4
EBITDA         3,687         2,667         1,020 38
Depreciation         2,766         1,897            869 46
Income from investment under equity accounting         2,196            235         1,961 834
Net income         3,335         1,150         2,185 190
         
Earnings per share           0.05           0.02           0.03 195
Weighted average shares outstanding        62,737       63,788        (1,051) (2)
         
Total assets      176,642      147,857       28,785 19
Total debt        17,156       7,966          9,190 115
  • In France, Covage's revenue generating customer connections grew 64% over the prior year to 3,366 from 2,049.  Covage's new network in Nantes, which was announced in November 2011, is moving quickly through construction and integration of existing infrastructure and is currently generating revenue and positive EBITDA.
  • In Singapore, OpenNet had 229,000 subscribers at September 30, 2012, up from 180,000 at June 30, 2012 and 64,600 a year ago.  Demand for OpenNet's dark fibre services remains strong as the initial network build is complete and the network moves towards full activation.
  • In Alberta, Axia continues to make investments in high demand areas throughout the province and is successfully penetrating the private sector market.
  • Alberta's school divisions, the largest provincial public-sector customer group, began purchasing new high speed bandwidth services province-wide.

The unaudited interim consolidated financial statements for the three months ended September 30, 2012 and related Management's Discussion & Analysis (MD&A) have been reviewed and approved by Axia's Audit Committee and Board of Directors.  Axia recognizes that the majority of its investors are now accessing Axia's corporate and financial information either through pushed news services, directly from Axia's corporate website or SEDAR.  Thus, Axia has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted at www.axia.com.

Notice of Conference Call

Axia will hold a conference call with the investment community on Tuesday, November 13, 2012 at 3 p.m. (Eastern), 1 p.m. (Mountain).To participate in the conference call, please dial (647) 427-7450 in Toronto and internationally. If you are connecting from other parts of Canada, dial 1-888-231-8191. Please call ten minutes prior to the start of the call. In addition, a live webcast (listen only mode) of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/1066417/1159749

A replay of the conference call will be available at (416) 849-0833 or 1-855-859-2056, passcode 69153142 from 6 p.m. (Eastern) Tuesday, November 13, 2012 to midnight (Eastern) Tuesday, November 20, 2012 or through the webcast archives at www.newswire.ca.

About Axia

Axia sells services over fibre optic communications infrastructure in jurisdictions that have implemented the Axia NGN Solution. To date, Axia has networks in Alberta, France, Singapore, Spain and Massachusetts. Axia trades on the Toronto Stock Exchange under the symbol "AXX".

This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict. Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia's ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.

 

SOURCE: Axia NetMedia Corporation

For further information:

please visit Axia's website at www.axia.com, or contact:

Glenn Jamieson
Investor Relations
Axia NetMedia Corporation
(905) 582-6169
glenn.jamieson@axia.com