iWeb Communities: Blog

IT infrastructure outsourcing is helping businesses innovate while containing costs; iWeb announced its financial results for the second quarter of 2009.

Second Quarter Highlights:  

• Revenues have increased by 94%, reaching $6.9 million for the second quarter; almost doubling the performance for the same quarter of 2008
• Adjusted EBITDA of almost $2.0 million for 2009, or 28.5% of revenues
• Operating income of $324,000, compared to $6,000 12 months earlier
• Net loss of $246,000, following the additional unrealized theoretical exchange lost on long-term debt in U.S. dollars

“Our revenue growth is consistent, almost double what it was 12 months ago.” said Eric Chouinard, iWeb President and CEO. “And, with operating income over $300,000, EBITDA close to $2 million, which is nearly 30% of revenues, the strength and full potential of our business is becoming easier to understand”.

“Monthly revenues reached the $2.4 million mark in March, though we have to work even harder to maintain that pace, given the current economic context.” adds Martin Leclair, President, Products and Technology. He then said that “In recent months, we noticed a slowdown in new net recurring revenues, mostly due to an increase in the churn rate. This increase in churn is mainly attributable to current clients who are downsizing the level of certain services which were not considered essential at this time. We believe that these same services will be reintroduced when our customers’ situation will allow them to pursue more ventures.”

“The strong improvement of our operations, in terms of profitability, is not yet reflected in our net results.” indicates Philip Tousignant, Chief Financial Officer. ” Due to financial expenses resulting from external market conditions, totalling $560,000 for the last quarter, we are reporting a net loss. For the second consecutive quarter, the main element of these financial expenses is the unrealized exchange loss on the long-term debt of $10 million US.”

Read the full press release.