VANCOUVER, May 23, 2013 /CNW/ - Radiant Communications Corp. ("Radiant") (TSX-V:RCN), a leading provider of managed network
and cloud hosting solutions for medium-size enterprises today announced
its financial results for the first quarter ended March 31, 2013.
Record revenue of $8.3 million for the first quarter ended March 31,
2013 increased by 1.5% compared to revenue of $8.2 million for the
first quarter ended March 31, 2012.
Gross margin was 40.2% for the quarter compared to 40.0% in the first
quarter of 2012.
EBITDA for the first quarter ended March 31, 2013, was $622,492 compared
to $433,181 in the first quarter of 2012, a growth of 43.9%. Included
in the first quarter 2013 EBITDA calculations are expenses related to
the proposed plan of arrangement process of $140,000. (See EBITDA
section for the reconciliation of EBITDA to Net Income).
Net income for the first quarter ended March 31, 2013 was $275,101 or
$0.02 per share compared with net income of $39,714 or $0.00 per share
in the first quarter of 2012. Included in the first quarter 2013 net
income amount are expenses related to the proposed plan of arrangement
process of $140,000.
The Company ended the quarter with cash and short-term investments of
$5.6 million and used $1.1 million of cash for operating activities
during the first quarter.
On March 8, 2013, the Company entered into an Arrangement Agreement with
three controlling shareholders under which the Company would be taken
private pursuant to a plan of arrangement under the provisions of the
Canada Business Corporations Act. This agreement was later terminated
on April 25, 2013.
On April 26, 2013, Don Calder resigned as Chairman of the Board of
Directors of Radiant.
"The First Quarter of 2013 has proven to be a very successful quarter
with strong performance in all areas," said Paul Healey, President and
CEO. "Our expertise across Canada combined with our broad portfolio
offers customers a unique customer experience in the market. Radiant is
very well positioned as a leading provider of cloud hosting and network
solutions across Canada with a strong recurring revenue base and
customer focused operation. "
Earnings before Interest, Taxes, Depreciation and Amortization are
calculated as follows:
Operating Income (loss)
Stock-based compensation expense
In the first Quarter of 2013, Radiant achieved EBITDA of $622,492
compared to EBITDA of $433,181 in the first quarter of 2012. Included
in the EBITDA calculation are expenses of $140,000 related to the
proposed plan of arrangement.
Radiant Communications is a leading provider of managed network and
cloud hosting solutions for medium-size enterprises. Leveraging one of
the largest Internet footprints across Canada, Radiant offers a
comprehensive portfolio of reliable, secure and scalable IT
infrastructure services, simplified under a single point of contact.
For over 15 years, many of Canada's most recognized brand names have
been relying on Radiant to support their mission-critical business
All trademarks, service marks, registered trademarks, or registered
service marks are the property of the respective owners.
This press release may contain forward-looking statements, including
statements regarding the business and anticipated financial performance
of Radiant, which involve risks and uncertainties. These risks and
uncertainties may cause Radiant's actual results to differ materially
from those contemplated by the forward-looking statements. Factors that
might cause or contribute to such differences include, among others,
competitive pressures, the growth rate of the Internet and
telecommunications concerns, constantly changing technology and market
acceptance of Radiant's products and services. Investors are also
directed to consider the other risks and uncertainties discussed in
Radiant's required financial statements and filings. All other
companies and products listed herein may be trademarks or registered
trademarks of their respective holders.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE: Radiant Communications Corp.
For further information:
Investors: Chuck Leighton, CFO, 604.692.4531, email@example.com
Media: Janice Keay, Senior Director,Marketing, 416. 646.9416, firstname.lastname@example.org