iWeb Communities: Blog

Montreal, Quebec, August 24, 2010 – iWeb Group Inc. (TSX-V : IWB) (« iWeb » or the « Company »), a provider of IT infrastructure and Internet hosting services to clients in 150 countries, announced its results for the third quarter of 2010.

Financial highlights for 2010 third quarter:

• Revenues increased to $7.5M, from $7.2M in Q3 2009
• $2M Adjusted EBITDA, or 27% of revenue
• Operating loss of $152,000, down from an operating profit of $261,000 one year prior
• Net loss of $645,000, compared to net earnings of $1M in Q3-2009, due mostly to exchange rate variations on long-term debt in USD

“iWeb has been pursuing several key operational targets throughout the third quarter, like the reorganisation of many internal technological resources and securing the financing for ongoing projects”, said Eric Chouinard, President and Chief Executive Officer of iWeb, adding that “many important technological developments, related to iWeb’s new data center in Montreal, have been deployed during the quarter. iWeb expects the results of these developments to act as a catalyst for its return to growth” added the Company’s cofounder, named to “Canada’s Top 40 Under 40^TM” in June, a recognition of his accomplishments with iWeb.

Key Financial Data (in thousands, except “per share” amounts)

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

Third Quarter 2010 Financial Review:

Revenues increased 4% to $7.5M from $7.2M during the same quarter of 2009. Using the 2009 USD/CAD exchange rates, revenues would have increased 18% to $8.5M.

Adjusted EBITDA is $2M, representing 27% of revenues for the quarter, compared to $1.6M (23% of revenue) for Q3 2009.

Decrease in operating profit (loss of $152,000 in Q3-2010) compared to Q3-2009 is mainly explained by the rental expense of the new data center and a less favorable impact of the exchange rate variations between the USD and the CAD, on the Company’s operations.

Compared to the net profit of slightly over $1M reported for Q3 2009, the Company reports a net loss of $645,000 for this quarter. The variation between the quarters is mostly attributable to the changes in the rate of conversion of the long-term debt in USD that must be converted to CAD for reporting purposes, while the balance is attributable to the operating loss.

Complete interim financial statements and Management’s Discussion and Analysis (MD&A) of the Company are available on iWeb’s investor web site (http://investors.iweb.com) and SEDAR (http://www.sedar.com).

About iWeb Group Inc. (iWeb.com)

iWeb.com is a worldwide provider of Internet hosting services and IT Infrastructure, and one of Canada’s 100 fastest growing companies according to PROFIT Magazine. From 2004 to 2009, the Company’s compounded annual growth rate has been above 75%. With the opening of its fourth secured data center in Montreal, iWeb’s capacity will near 35,000 dedicated servers.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 185 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 22,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V: IWB).

-30-

For more information:

Philip Tousignant

iWeb Group Inc.

Chief Financial Officer

(514) 286-4242 ext. 2149

ptousignant@iweb.com

Bernard Dahl

Presentis

Investor Relations / Media Relations

(514) 802-2801

bernard@presentis.ca

For the past months, articles about web design, web development, web hosting, and many other topics such as marketing have been published on the iWeb blog, plus updates about the company and about iWeb products.

You can see the archives for each section: iWeb, Web Development, Web Hosting

We have received many feedback for those articles, comments on this blog and other websites, ratings and emails from readers about the great quality of our articles. (more…)

If you get a new dedicated server, it’s very likely that you’d use it as a web server, or alternatively as a database server or file (assets) server. These represents the vast majority of cases.

From time to time though, we do see people using a server in very original ways, sometimes with bewilderment, sometimes with a blank stare, but most of the times amazed at the creativity. As a fun exercise, I’ve made a (short) list of creative ways on using a server. A few of them are useful and you could probably and run them on your machine, although my guess is that they’ll stay as as exceptions.  (more…)

We always like to showcase your projects and share your good moves with iWeb’s community. Earlier this week we talked with developper Jerôme Gravel-Niquet about his latest project, an extention for the Safari browser, named Ostrich (http://ostrichapp.com/). (more…)