MetroBridge Networks Announces Third Quarter 2007 Results



    VANCOUVER, Nov. 14 /CNW/ - MetroBridge Networks International Inc.
(TSX-V: MEB), a premier high-speed wireless broadband provider for business
with operations in Canada and the United States, today announced results for
the third quarter ended September 30, 2007. All figures in Canadian Dollars
unless otherwise stated.

    
    Highlights

    -   Completed a Reverse Take-Over of Huntingdon Capital Inc., and
        concurrently raised $9 million in a Prospectus Offering
    -   Revenue reached $1.0 million in the quarter up from $0.5 million in
        the third quarter of 2006. Annualized revenue of $3.8 million at
        quarter-end
    -   Monthly Added Average Revenue Per User (ARPU)(*) reached an all-time
        high of $856
    -   Sales of Value-added Services are up 90% from the second quarter and
        now represent 11% of revenue
    -   Customer Locations reached 913 in the quarter, up 103% year-over-year
    -   Customer Churn(*) was 0.97% for the quarter
    -   Signed a Letter of Intent on October 15, 2007 to acquire WiBand
        Communications Corp. with networks in Calgary, Edmonton and Winnipeg
        for $9 million plus the assumption of $1.5 million in debt
    -   Signed a Letter of Intent on October 26, 2007 to acquire Utah
        Broadband, LLC with networks in Salt Lake City, Provo and Park City
        for US$5.4 million

    (*)See Non-GAAP Measures
    

    "MetroBridge's third quarter results show steady organic growth, and our
record Monthly Added ARPU is a clear indication that our strategy of focusing
on high-bandwidth clients is paying off," said Dorian Banks, President and
Co-Founder of MetroBridge. "We are very pleased to have completed our public
offering, and we have now turned our focus to pursuing an aggressive
acquisition strategy - a strategy which has borne fruit with our recent
announcements of the Letters of Intent to acquire WiBand Communications and
Utah Broadband."

    Third Quarter Financial Results

    Total revenue for the third quarter ended September 30, 2007 was
$1.0 million compared with $0.5 million for the third quarter ended September
30, 2006. The increase in revenue was driven by increased ARPU and net
customer additions of 463. Value-added services revenue grew to $0.1 million
and now represents 11% of revenue.
    Gross margin decreased to 52% for the third quarter of 2007 compared with
63% for the third quarter of 2006. The decrease in gross margin is due to a
provision for inventory obsolescence of $46,442 of legacy inventory and
increases in bandwidth costs related to the continued build-out of
infrastructure in Phoenix.
    Operating expenses increased by 110% to $1.0 million compared with
$0.7 million for the third quarter of 2006. The increase was due primarily to
expenses associated with the growth of our sales force, administrative
personnel and infrastructure to support the Company's aggressive growth plans.
    EBITDA decreased by 139% to $(0.7) million for the third quarter of 2007
compared with $(0.3) million for the third quarter of 2006. The decrease in
EBITDA is due largely to the expanding scope of our operations in every facet
of the business.
    MetroBridge reported a net loss of $(1.0) million or $(0.03) per share
for the third quarter of 2007, compared to a net loss of $(0.4) million or
$(0.02) per share for the third quarter of 2006.
    During the quarter MetroBridge completed a reverse take-over of
Huntingdon Capital Inc., and raised $9 million in a concurrent prospectus
financing.
    Subsequent to the end of the quarter MetroBridge announced the following
Letters of Intent:
    On October 15, 2007 MetroBridge signed a Letter of intent to acquire
WiBand Communications Corp., a Winnipeg, Manitoba-based company with
operations in Winnipeg, Calgary, and Edmonton for $9 million plus the
assumption of $1.5 million in debt. WiBand has approximately 700 customers
with an ARPU of approximately $425 per month. WiBand is a profitable operation
with annual revenues of approximately $5 million and positive EBITDA.
    On October 26, 2007 MetroBridge signed a Letter of Intent to acquire Utah
Broadband, LLC, a Salt Lake City-based company with operations in six counties
including the Salt Lake City, Provo, and Park City metropolitan areas for
US$5.4 million. Utah Broadband has approximately 3,000 customers with an ARPU
of approximately US$55 per month. The company is a profitable operation with
annual revenues exceeding US$2.2 million.

    Outlook

    "With two executed Letters of Intent that will give MetroBridge an annual
run-rate revenue of over $10 million - triple our current size - we look
forward to completing our due diligence through the fourth quarter and closing
these transactions early in the New Year," said Dorian Banks. "Within our
existing businesses we expect solid growth to continue, with continued
emphasis on enterprise-level contracts and value-added products and services."

    Conference Call

    President Dorian Banks and Chief Financial Officer Christopher Morris
will hold a conference call at 1:30 p.m. Pacific Time on Wednesday,
November 14, 2007 to discuss financial results and performance. Interested
parties may access the call dialing 1-800-587-1893 or 416-644-3434 (for
international callers).
    A telephonic replay of the conference call may be accessed until 11:59
p.m. PT, November 21, 2007, dialing 1-877-289-8525 or 416-640-1917 (for
international callers), using pass code 21252887 and then the number sign.

    (*)Non-GAAP Measures

    ARPU is the average revenue per user per month, calculated by dividing
the average number of customers by the total average revenue (excluding
interest) for the period.
    Monthly Added ARPU is calculated by dividing the Monthly Recurring
Revenues added for the month by the related number of Customer Locations added
that month.
    Churn represents the monthly recurring revenue lost during the period
attributable to customers who had been with the company for greater than 90
days, as a percentage of total revenue (excluding interest) for the period.
    EBITDA, or earnings before interest, tax, depreciation and amortization,
gives a measure of financial performance which excludes charges not directly
and specifically linked to the ongoing operations of the period in question.
The financial results and financial information presented to calculate EBITDA
are determined in compliance with Canadian GAAP.

    Forward Looking Statements

    This press release contains certain forward-looking statements that
reflect the current views and/or expectations of MetroBridge Networks
International Inc. with respect to performance, business and future events.
Such statements are subject to a number of risks, uncertainties and
assumptions. Actual results and events may vary significantly from those
disclosed herein. Investors are cautioned not to rely on these forward-looking
statements. MetroBridge Networks International Inc. does not undertake to
update these forward-looking statements.

    About MetroBridge Networks International Inc.

    MetroBridge, a leading international fixed wireless provider, delivers
broadband wireless access using pre-WiMAX and other advanced wireless
technologies. Its highly redundant mission critical network provides
connections up to 2500Mbps in Canada and the United States. MetroBridge's
aggressive growth strategy contemplates acquisitions throughout North America
and additional complementary products and services. The Company operates in
all market segments including police and 911 services, the financial industry,
retailers and businesses of all sizes. MetroBridge was the first Canadian
carrier selected to join the WiMAX Forum to assist the industry in
establishing equipment interoperability. Please visit the Company's website at
www.metrobridge.com

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.


    METROBRIDGE NETWORKS INTERNATIONAL INC.

    Interim Consolidated Financial Statements
    (Expressed in Canadian dollars)
    Nine Months Ended September 30, 2007 (Unaudited)
    Prepared by Management (not audited or reviewed by external auditors)
    See Notice to Reader

    -------------------------------------------------------------------------

    NOTICE TO READER

    The accompanying unaudited interim financial statements of MetroBridge
Networks International Inc. (the "Company") for the period ended September 30,
2007 have been prepared by management and approved by the Audit Committee and
Board of Directors of the Company. These statements have not been audited,
reviewed or verified by the Company's external auditors or any other
accounting firm.

    
    METROBRIDGE NETWORKS INTERNATIONAL INC.

    Interim Consolidated Balance Sheets
    (Expressed in Canadian dollars)
    (Unaudited)

                                                   September 30  December 31
                                                           2007         2006
                                                   --------------------------
                                                    (Unaudited)
    ASSETS
    Current
      Cash                                          $ 7,409,838  $   689,762
      Accounts receivable                               536,518      341,150
      Network inventory                                 438,584      384,729
      Prepaid expenses and deposits                     147,416       44,941
      Deferred financing costs                          129,265            -
    -------------------------------------------------------------------------
                                                      8,661,621    1,460,582
    Capital assets                                    1,322,950    1,318,872
    Assets under capital lease                          841,862      187,326
    Intangible assets                                   314,155      492,926
    -------------------------------------------------------------------------

                                                    $11,140,588  $ 3,459,706
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES
    Current
      Accounts payable and accrued liabilities      $   274,534  $   424,276
      Loans payable                                           -      755,250
      Convertible debenture                           1,714,000            -
      Deferred revenue                                   64,360       41,680
      Obligations under capital lease payable
       within the next year                             390,168       64,756
      Current portion of long term debt                  48,889       58,252
    -------------------------------------------------------------------------
                                                      2,491,951    1,344,214
    Obligations under capital lease                     463,069      108,998
    Long term debt                                        3,657       39,578
    -------------------------------------------------------------------------
                                                      2,958,677    1,492,790
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
      Share capital                                  14,948,737    6,444,062
      Contributed surplus                               414,213      217,219
      Deficit                                        (7,181,039)  (4,694,365)
    -------------------------------------------------------------------------
                                                      8,181,911    1,966,916
    -------------------------------------------------------------------------

                                                    $11,140,588  $ 3,459,706
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Approved By The Board

         "Martin Carsky"
    ------------------------------

         "Brent Flichel"
    ------------------------------



    METROBRIDGE NETWORKS INTERNATIONAL INC.

    Interim Consolidated Statements of Loss
    (Expressed in Canadian dollars)
    (Unaudited)

                             Three months ended         Nine months ended
                                September 30              September 30
                          ---------------------------------------------------
                              2007         2006         2007         2006
                          ---------------------------------------------------
                          (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
    REVENUE
      Monthly recurring   $   773,646  $   403,236  $ 2,159,185  $ 1,135,631
      Value added
       services               106,671          930      181,042        1,499
      Other                    73,319      145,717      382,951      295,587
    -------------------------------------------------------------------------
                              953,636      549,883    2,723,178    1,432,717
    -------------------------------------------------------------------------

    COST OF SERVICES
      Cost of services
       (exclusive of
       amortization of
       network equipment
       of $122,276, $40,200,
       $328,141, and
       $78,016)               456,995      201,865    1,156,826      535,192

      Amortization of
       network equipment      122,276       40,200      328,141       78,016
    -------------------------------------------------------------------------
                              374,365      307,818    1,238,211      819,509
    -------------------------------------------------------------------------

    OPERATING EXPENSES
      Corporate office        469,395      283,165    1,190,639      796,396
      Sales and marketing     295,310      203,923      800,695      559,236
      Salaries and benefits    47,506       49,938      181,166       93,940
      General and
       administrative         145,647       63,223      459,404      208,447
      Share-based
       compensation            76,081       35,792      187,308      107,008
      Amortization            128,434       31,688      268,601      108,096
      Interest                134,537       22,024      257,663       49,725
      Bad debts               151,243            -      163,585       (4,922)
    -------------------------------------------------------------------------
                            1,448,153      689,753    3,509,061    1,917,926
    -------------------------------------------------------------------------
    OPERATING LOSS         (1,073,788)    (381,935)  (2,270,850)  (1,098,417)

    OTHER INCOME (EXPENSES)
    Interest income            52,575            -       52,575            -
    Impairment of
     network equipment
     and intangible
     assets                         -            -     (268,399)           -

    NET LOSS              $(1,021,213) $  (381,935) $(2,486,674) $(1,098,417)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic loss per share  $     (0.03) $     (0.02) $     (0.09) $     (0.06)
    -------------------------------------------------------------------------

    Weighted average
     number of shares
     outstanding           36,926,043   18,942,221   28,940,593   17,284,837
    -------------------------------------------------------------------------

    Fully diluted loss
     per share            $     (0.03) $     (0.02) $     (0.08) $     (0.06)
    -------------------------------------------------------------------------
    Weighted average
     number of fully
     diluted shares
     outstanding           40,183,747   18,942,221   30,049,749   17,284,837
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    METROBRIDGE NETWORKS INTERNATIONAL INC.

    Interim Consolidated Statements of Deficit
    (Expressed in Canadian dollars)
    (Unaudited)

                             Three months ended         Nine months ended
                                September 30              September 30
                          ---------------------------------------------------
                              2007         2006         2007         2006
                          ---------------------------------------------------
                          (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
    OPERATING LOSS FROM
     CONTINUING
     OPERATIONS           $(1,021,213) $  (381,935) $(2,486,674) $(1,098,417)
    -------------------------------------------------------------------------
    NET LOSS               (1,021,213)    (381,935)  (2,486,674)  (1,098,417)
    DEFICIT, BEGINNING
     OF PERIOD             (6,159,826)  (3,758,585)  (4,694,365)  (3,042,103)
    -------------------------------------------------------------------------
    DEFICIT, END OF
     PERIOD               $(7,181,039) $(4,140,520) $(7,181,039) $(4,140,520)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    METROBRIDGE NETWORKS INTERNATIONAL INC.

    Interim Consolidated Statements of Cash Flows
    (Expressed in Canadian dollars)
    (Unaudited)

                             Three months ended         Nine months ended
                                September 30              September 30
                          ---------------------------------------------------
                              2007         2006         2007         2006
                          ---------------------------------------------------
                          (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)

    Cash Flows From
     Continuing Operating
     Activities

    Loss from continuing
     operations           $(1,021,213) $  (381,935) $(2,486,674) $(1,098,417)
    Items not involving
     cash:
      Amortization            265,442       71,888      239,129      186,112
      Share-based
       compensation            79,712       35,792      196,994      107,008
    Changes in non-cash
     operating working
     capital:
      Accounts receivable     108,770      (68,024)    (195,369)     (58,520)
      Network inventory       (54,042)      67,380      (53,855)    (132,735)
      Prepaid expenses and
       deposits               410,208      (56,149)    (231,740)     (59,321)
      Current obligation
       under capital lease    (82,512)     (26,754)     189,438        9,531
      Accounts payable and
       accrued liabilities   (723,182)      18,239     (149,740)    (127,135)
      Deferred revenue        (17,468)      (1,710)      22,679       (1,720)
    -------------------------------------------------------------------------
                           (1,034,285)    (341,273)  (2,469,138)  (1,175,197)
    -------------------------------------------------------------------------

    Cash Flows From
     Financing Activities
    Shares issued for cash  7,760,313      723,975    8,504,675    1,345,175
    Loans                    (771,904)           -      913,466      501,129
    Payments made on
     capital lease            179,736      (14,155)    (164,492)     (64,536)
    -------------------------------------------------------------------------

                            7,168,145      709,820    9,253,649    1,781,768
    -------------------------------------------------------------------------

    Cash Flows From
     Investing Activities
    Cash consideration
     paid for capital
     assets                  (241,247)    (281,447)    (185,004)    (538,172)
    Cash consideration paid
     for intangible assets     (1,750)        (213)     120,569       (3,218)
    Cash consideration paid
     for capital lease
     assets                  (107,901)      13,198            -            -
    -------------------------------------------------------------------------

                             (350,898)    (268,462)     (64,435)    (541,390)
    -------------------------------------------------------------------------
    Increase in Cash from
     Continuing Operations  5,782,962      100,085    6,720,076       65,181
    -------------------------------------------------------------------------

    Increase in Cash        5,782,962      100,085    6,720,076       65,181
    Cash, Beginning of
     period                 1,626,876      145,601      689,762      180,505
    Cash, End of period   $ 7,409,838  $   245,686  $ 7,409,838  $   245,686
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental
     Information on
     Non-Cash Transactions
      Acquisition of
       assets under
       capital lease         (189,566)           -     (847,912)           -
    





For further information:

For further information: Samantha Singh, MetroBridge Investor Relations,
Toll Free: (888) 628-1240, Direct: (604) 628-5627, Fax: (888) 628-2650,
ssingh@metrobridge.com

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METROBRIDGE NETWORKS CORPORATION

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