iWeb Communities: Blog

MONTREAL, QUEBEC, May 13, 2008 iWeb Group Inc. (TSX-V: IWB) (“iWeb” or the Company), a worldwide internet hosting infrastructure provider, announces its financial results for the second quarter of fiscal 2008 ended March 31, 2008. All results are reported in Canadian dollars unless otherwise stated. The Company’s full interim financial statements and MD&A will be available at www.iweb.com and www.sedar.com.

Q2-2008 Summary

- 56% increase in revenues to $3.6 million for the quarter ended March 31, 2008 compared to $2.3 million for the same period of 2007
- Adjusted EBITDA1 of $0.8 million for the second quarter, a 71% increase over the same period of fiscal 2007
- Company’s new website is now on-line: iweb.com
- Completion of work on phase 3 of Couture data center
- Completion of work on phase 1 of Nuns’ Island data center, and installation of first customers

?Our financial results show once again a steady growth in revenues and adjusted EBITDA? comments Martin Leclair, Vice-President and Chief Operating Officer of iWeb. ?Everything seems to indicate that our growth will continue: the occupancy rate of our principal data center for dedicated servers is quickly increasing and we will soon begin the work on the last phase for that site; phase one of work of our new co-location data center of Nuns’ Island is almost completed and we already welcomed our first customers; our new website under the domain name iweb.com is now on-line and features additional products and functionalities, and we can already notice that it had a positive impact on the number of visits on our website and on new recurring revenues. Therefore, the current trend is very positive and explains our optimism over our future growth.

Second Quarter of 2008 Financial Review

Consolidated revenues of the second quarter ended March 31, 2008 were $3.6 million, compared to $2.3 million for the same period of 2007, an increase of $1.3 million or an improvement of 56%. Without taking in account the impact of the stronger Canadian dollar against the U.S. currency, growth in revenues would have been even better since 75% of Company?s revenues are generated in U.S. dollars.

Gross profit margin for the quarter was 53%, compared to 56% for the corresponding quarter of fiscal 2007. This decrease is mainly explained by the strength of the Canadian dollar against the U.S. currency. Contrary to revenues, a great portion of cost of services sold is expensed in Canadian dollars.

Operating expenses decreased to 52% of revenues for the second quarter of 2008, compared to 55% for the same period of last year. This improvement is mainly explained by a better control on advertising expenses, and by interest revenues generated by investments in term deposits coming from the net proceeds from the issuance of shares of November 2007. These positive impacts in operating expenses were partly reduced by higher stock-based compensation expenses.

Adjusted EBITDA increased to $0.8 million, or 23% of revenues, for the quarter ended March 31, 2008, compared to $0.5 million, or 21% of revenues for the same three-month period of previous fiscal year, an improvement of 71% year-over-year.
Net earnings remained nearly at the same level of the preceding year and were $19,225 or $0.0007 per share for the quarter ended March 31, 2008, compared to $21,710 or $0.0009 per share for the same period one year-ago.

Selected Financial Information

Second quarter ended March 31 (2008 vs 2007)

Revenues : $3,574,627 $2,290,877
Gross profit : $1,896,807 $1,281,904
Net earnings : $19,225 $21,710
Earnings per share ? basic : $0.0007 $0.0009
Adjusted EBITDA(1) : $837,976 $489,144
Total assets : $21,516,345 *$14,788,031
Shareholders? equity : $5,814,903 *$1,957,453
Cash and term deposits : $2,287,568 *$844,456

*As at September 30, 2007

1- The Company defines Adjusted EBITDA as Earnings before interest, taxes, depreciation and amortization and stock based compensation.

About iWeb Group Inc.
Founded in 1996, iWeb is today one of the leading Canadian providers of advanced IP hosting services either through shared hosting, dedicated servers or co-location in three data centers, featuring over 52,000 square feet of floor space and the latest technological equipment. iWeb provides services in English, French and Spanish to more than 13,000 clients from more than 135 countries. For more information, please visit the Company?s website at www.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.

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

For more information

Marc Guindon
iWeb Group Inc.
Vice-President and Chief Financial Officer
(514) 286-4242 ext. 121
mg@iweb.com

Olivier Niquet
iWeb Group Inc.
Communications
(514) 286-4242 ext. 192
oniquet@iweb.com