OTTAWA, Aug. 28 /CNW/ - RAMTelecom Inc. (TSXV: RTC) today reported
results from the second quarter ended June 30, 2008. The highlights provided
in this press release should be read in conjunction with the Corporation's
unaudited interim Financial Statements and Management's Discussion and
Analysis for the second quarter of 2008, found on SEDAR at www.sedar.com.
RAMTelecom CEO, Ralph Misener, commented, "These second quarter results
have shown gains made by the Corporation over the same period in 2007. Our
focus on building the recurring revenue base is starting to show real progress
and management is confident it will be the prime source of long-term
profitability. Satellite services recurring revenue showed an increase of
32.5% compared to the same quarter in 2007."
Three Months Ending Q2 2008 Q2 2007 Change
------------------- ------- ------- ------
Revenues $ 1,013,430 $ 954,439 6.2%
Cost of Sales $ 719,080 $ 704,135 2.1%
Gross Margin $ 294,350 $ 250,304 $ 44,046
Gross Margin Percentage(1) 29% 26% 11.5%
Net Income (Loss) $ (260,389) $ (385,729)
Cash Flow(1) $ (155,167) $ (207,611)
(1) see Non-GAAP Measures in MD&A
The Corporation's second quarter revenues of $1,013,430 increased 6.2%
from $954,439 in revenues reported for the second quarter of 2007. In the
Corporation's second quarter, historically the softest quarter of the year,
the cash flow was negative $155,167, compared to a negative cash flow of
$207,611 for the same period last year. The Gross Margin increased by 44,046
or 17.6% over the same period in 2007. Gross margin percentage of 29%
represents an increase of 11.5%, compared to the prior year. This increase was
achieved through higher margin recurring revenue satellite services, secured
through long-term customer contracts and Linkstar product sales.
RAMTelecom's second quarter 2008 financial results reflect management's
continued focus to build the Corporation's recurring revenue-based satellite
services. The signing of the Master Service Agreement with Intelsat General
now provides the opportunity for RAMTelecom to offer its Global IP service
worldwide. Management's outlook remains positive following the results of this
second quarter. Key projects in oil and gas, mining, as well as partnerships
with Canadian telecom providers should strengthen revenues in the remaining
quarters of 2008.
About RAMTelecom Inc.
RAMTelecom Inc. (TSXV:RTC) is a satellite service provider delivering
flexible, scalable solutions for broadband data and voice business
communications. Its fixed and mobile satellite-based communication services
and value-add solutions are designed for medium and large enterprises in oil
and gas, mining, and forestry and government agencies. With complete coverage
of the North American market, the Corporation's satellite broadband services
help organizations achieve greater operational efficiency by providing
continuous real-time communications between central offices and remote
locations anywhere in North America.
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or accuracy of this release.
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For further information:
For further information: R. A. (Ralph) Misener, President and Chief
Executive Officer, Tel: (613) 747-1836 Ext. 125, Email:
firstname.lastname@example.org; Alison Tullis, CHF Investor Relations, Senior Account
Manager, Tel: (416) 868-1079 Ext. 233, Email: email@example.com