Axia Releases Results for the Year Ended June 30, 2012

  • Revenue generating customers grew by 23% to 8,151.
  • OpenNet recently activated the 200,000th end user.
  • NGN Services revenue grew 8% over the prior year to $62.1 million after adjusting for the expiry of the Bell contract.  Reported annual NGN Services revenue was down $0.3 million or less than 1%.
  • FY12 EPS was $0.13 up from $0.09 the previous year.
  • Covage increased its footprint by adding three new networks. When fully activated Covage's addressable market will grow to 46,000 from 34,000. Subsequent to year end, another regional network was added.
  • In Alberta, to meet customer demand, an alternate network resiliency route in the northwestern region of the province and an Oil Sands Fibre Grid were completed.

 

CALGARY, Sept. 18, 2012 /CNW/ - Axia NetMedia Corporation (Axia) today announced the results for its Q4FY12 and year-end results for the period ended June 30, 2012.

SUMMARY OF YEAR-END AND Q4FY12 CONSOLIDATED FINANCIAL INFORMATION

($000s except per share amounts) 2012 2011
NGN Services revenue 62,142 62,435
Revenue 72,857 78,159
Net income before tax 8,612 8,124
Net income attributable to common shareholders 8,684 6,554
Net income per share 0.13 0.09
     
Total Assets 170,259 149,017
Total Debt 15,808 7,985
     

($000s except per share amounts) Q4FY12 Q3FY12 Q2FY12 Q1FY12
         
NGN Services revenue 16,346 15,906 15,067 14,823
Revenue 18,968 18,196 17,696 17,997
Net income attributable to common shareholders 528 5,437 1,569 1,150
Net income per share $0.00 $0.09 $0.02 $0.02
         

Compared to last year, revenue decreased $5.3 million (7%) from $78.2 million as a result of (1) a decline in Connection Services revenue in both North America and Europe due to fewer construction projects; and (2) the expiry of a contract with Bell in North America that previously generated $5.0 million of NGN Services revenue each year.  Revenue for the fourth quarter was $19.0 million, an increase of $0.8 million (4%) from $18.2 million for the prior quarter. This is a result of increased NGN Services revenue across all regions reflecting an increase in market penetration. The net income attributable to common shareholders for FY12 was $8.7 million ($0.13 per fully diluted share) as compared to $6.6 million ($0.09 per fully diluted share).  Net income attributable to common shareholders was $0.5 million ($0.00 per fully diluted share) for the quarter as compared to $5.4 million ($0.09 per fully diluted share) for the prior quarter. Included in the current quarter net income is an impairment loss in one of Covage's regional networks of $1.9 million ($0.03 per fully diluted share).  Included in prior quarter net income is Covage's increased ownership interest in the Hérault network that resulted in a gain of $3.0 million ($0.05 per fully diluted share).

The audited year-end consolidated financial statements for June 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.

AXIA'S CONFERENCE CALL SCHEDULED

A conference call for the investment community will be held Tuesday, September 18, 2012 at 3 p.m. (Eastern) and 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/1011139/1092583

Participants are invited to submit questions by email before and during the conference call. Please send them to ir@axia.com.

A replay of the conference call will be available at (416) 849-0833 or 1-855-859-2056, passcode 14287110 from 6 p.m. (Eastern) Tuesday, September 18, 2012 to midnight (Eastern) Tuesday, September 25, 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".

SOURCE: Axia NetMedia Corporation

For further information:

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

Dawn Tinling
VP, Investor Relations and Communications
Axia NetMedia Corporation
(403) 538-4074
dawn.tinling@axia.com

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Axia NetMedia Corporation

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