VANCOUVER, May 30, 2012 /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, 2012.
- Record revenue of $8.2 million for the first quarter ended March 31, 2012 increased by 3.1% compared to revenue of $7.9 million for the first quarter ended March 31, 2011.
- Gross margin was 40.0% for the quarter compared to 40.1% in the first quarter of 2011.
- EBITDA the first quarter ended March 31, 2012, was $433,181 compared to $325,513 in the first quarter of 2011. (See EBITDA section for the reconciliation of EBITDA to Net Income).
- Net income for the first quarter ended March 31, 2012 was $39,714 or $0.00 per share compared with a net loss of $62,470 or $0.00 per share in the first quarter of 2011.
- The Company ended the quarter with cash and short-term investments of $4.5 million and generated $660,901 of cash from operating activities during the first quarter.
- On March 5, 2012, Paul Healey was appointed President and CEO by the Board of Directors.
- On March 9, 2012, Rolf Dekleer resigned from the Radiant Board of Directors subsequent to the sale of the ownership position managed by GrowthWorks Capital Corp. to funds managed by Maxam Capital Corporation.
- Subsequent to the period ended March 31, 2012, the Company entered into an agreement with a vendor to provide services at a fixed price over a period of three years. The minimum purchase commitment over this three-year period is $11.6 million.
"Radiant's first quarter was very successful. With record revenue and strong EBITDA performance, we are now starting to realize some of the key benefits following the restructuring of our business operations." said Paul Healey, President and CEO. "We remain focused on our customer's experience and continue to invest in sales and marketing expertise, as we see an excellent opportunity to provide high value solutions and services to medium-sized enterprises. I am very pleased with our progress to date and look forward to continuing to improve our results and support our customers, many of Canada's well-known brands".
Earnings before Interest, Taxes, Depreciation and Amortization, is calculated as follows:
|($000s)||Q1 2012||Q1 2011|
|Operating Income (loss)||$ 50||$(44)|
|Stock-based compensation expense||20||20|
|EBITDA||$ 433||$ 325|
In the First Quarter of 2012, Radiant achieved EBITDA of $433,181 compared to EBITDA of $325,513 in the First Quarter of 2011.
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 operations.
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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.
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