iWeb Announces First Quarter Revenues up 19% to $7.2M

MONTREAL, Feb. 22 /CNW Telbec/ - iWeb Group Inc. (TSX-V: IWB), a global provider of Internet hosting services and IT infrastructure, today announced its financial results for the first quarter ended December 31, 2009.

    
    First Quarter Financial Highlights:
    -----------------------------------

    - Revenues increased to $7.2 million from $6.1 million, up 19% compared
      to the same quarter of the previous fiscal year
    - Adjusted EBITDA of $2.1 million during the first quarter; 28.4% of
      revenue
    - Net income increased to $180,000 compared to the $1,248,000 loss
      reported a year ago
    - Fourth data center confirmed with a total capacity of 20,000 servers
    

"Revenue growth for this quarter, nearly 20%, reflects our strong position in the IT infrastructure market," said Eric Chouinard, President and CEO, adding that "the Company's focus is on the consolidation of its substantial growth over the past 5 years. The fourth data center, announced in January 2010, along with its additional capacity of 20,000 servers, will give us tools to continue our growth.

"Virtually every significant figure in iWeb's financial results has improved," says Chief Financial Officer Philip Tousignant. "Revenues are up 19%, EBITDA exceeds $2 million, net results are now positive and cash flows from operations increased by 40%."

    
    First quarter of 2010 Financial Review
    --------------------------------------
    

Revenues for the quarter ended December 31, 2009 were $7.2M, an increase of $1.2M or 19% compared to first quarter of 2009 ($6.1M).

Adjusted EBITDA was $2.1M (28.4% of revenues) for the quarter ended December 31, 2009 compared to $1.9M (31.3% of revenues) for the quarter ended December 31, 2008.

The Company recorded a net income of $180,000 for the quarter ended December 31, 2009, compared to a net loss of $1,248,000 for the comparative period last year. Last year's loss was due to the unrealized exchange loss on the long-term debt.

    
    Key Financial Data ('000 $ except per share amounts)
    ----------------------------------------------------

                                            First Quarter ended December 31
                                                      2009             2008
    Revenues                                        $7,249           $6,075
    Gross Profit                                    $2,905           $3,155
    Operating income                                    $3             $248
    Net earnings (loss)                               $180          ($1,248)
    Earnings (loss) per share - basic              $0.0064         ($0.0447)
    Adjusted EBITDA(1)                              $2,056           $1,899
    Cash flows from operations                      $1,880           $1,337

                                                     As at            As at
                                               December 31,    September 30,
                                                      2009             2009
    Total assets                                   $33,271          $32,990
    Shareholders' equity                            $6,640           $6,365
    Cash and term deposits                          $2,023           $2,215

    1- The Company defines Adjusted EBITDA as Earnings before interest
       expenses, income taxes, depreciation and amortization, stock-based
       compensation, unrealized exchange gain/loss and straight-line
       amortization of rental expense.
    

The complete interim financial statements and management report of the Company are available at www.sedar.com and http://investors.iweb.com.

    
    About iWeb Group Inc.
    ---------------------
    

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure. With the opening of its fourth data center in Montreal, iWeb's capacity will near 35,000 dedicated servers. Since 2004, the company's compounded annual growth rate has been above 75%, making it one of Canada's 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to close to 20,000 customers in 145 countries. iWeb's shares are listed on the TSX Venture Exchange (TSX-V: IWB); for more information please consult: http://investors.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.

%SEDAR: 00018802EF

For further information: Philip Tousignant, iWeb Group Inc., Chief Financial Officer, [phone] ext. 149, [email protected]; Bernard Dahl, Presentis, Investor Relations/Media Relations, [phone], [email protected]