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The iWeb Blog Now Available in Spanish

Published on September 1, 2009 at 9:21 am by Bernard Dahl in: Press Releases

After becoming a benchmark in the web hosting industry, the iWeb blog will now be published in three languages

Montreal, Canada – The iWeb Blog will now be available to the Hispanic web community, who can now join the English and French readership which relies on the blog to keep abreast of the trends and issues affecting the Internet hosting industry. The blog is available here.

“The iWeb blog has been our preferred communication tool for many years now,” confirmed Martin Leclair, who co-founded iWeb in 1996. “Communicating with customers has always been very important to us, and with the blog we can share everything; news and trends, as well as providing the status of iWeb systems at all times. The blog is our main communication tool in case of emergency. ” Adds Mr. Leclair, who learned Spanish while spending several months in Latin America.

With posts dating back to 2001, the iWeb blog is one of the first blogs dedicated to web hosting to be published on the internet.

Since its redesign in 2008, the iWeb blog is divided into three main sections; “iWeb”, “web development” and “web hosting”. Readers can subscribe to the profile that most ressembles their interests and their professional or technical profile.

Since 2005, spanish has become increasingly important in iWeb’s communications, both online and with the company’s employees. iWeb now offers a complete service for the Hispanic market, helping spanish-speaking clients with customer service, billing,technical support and sales consultation.

iWeb Grants Stock Options

Published on August 21, 2009 at 5:56 pm by Bernard Dahl in: Press Releases

iWeb Group inc. announces that it has granted 120,000 stock options to members of its management team under its stock option plan, at an exercise price of $0.80 each. One quarter of the options will vest on each of the first, second, third and fourth anniversaries of the date of the grant. The options will expire on August 20, 2014.

About iWeb Group Inc.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than

21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V: IWB), for more information please consult the Company’s website: investors.iweb.com

For further information:

Philip Tousignant

iWeb Group Inc.

Chief Financial Officer

(514) 286-4242 ext. 149

ptousiqnant@iweb.com

Bernard Dahl

iWeb Group Inc.

Director, Communications and Public Relations

(514) 802-2801

bdahl@iweb.com


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22nd Quarter of Consecutive Growth for iWeb

Published on August 20, 2009 at 6:18 pm by Bernard Dahl in: Press Releases

With 75% revenue growth, the Internet hosting provider has surpassed its  2008 earnings total after 3 quarters

MONTREAL, QUEBEC – August 20 2009 – iWeb (TSX-V : IWB), a global provider of Internet hosting services and IT infrastructure, today released its financial results for the quarter ended June 30, 2009. The complete interim financial statements and management report of the Company are available on the websites www.sedar.com and investors.iweb.com.

Third quarter highlights :

  • 75 % revenue growth, totaling 7,2 M$ in the third quarter of 2009, from 4.1 M$ for the same period in 2008
  • Operating income 11 times greater than same quarter in 2008; 231,000 $ compared to 21,000 $ 1 year earlier
  • EBITDA (adjusted EBITDA) remains steady at 1,9 M$ for 2009; 26,4 % of revenues
  • Net profit of 1,023,000 $, mostly attributable to the additional unrealized theoretical exchange gained on long-term debt in U.S. dollars

Growth remains our priority, especially in the current economic climate” says Eric Chouinard, iWeb President and Chairman. He adds “having said that, our shareholders will be happy to see signs of profitability on both EBITDA and operating income”

“Clients are adopting new technologies at the same rate as they were twelve months ago” says Martin Leclair, President, Products and Technologies. “However, we are noticing a much more controlled approach to expense management from our clients, who are discontinuing certain services which they were not using extensively. Experimental projects are a little smaller, which is normal in the current economic context. We are working closely with our clients to optimize their infrastructure so that they can continue innovating.”

“Two important points to highlight are that revenues continue to grow and EBITDA is kept above 25% of revenue” adds Philip Tousignant, Chief Financial Officer. “Granted, this is the first time that iWeb’s net profit has passed the 1 M$ mark, but that figure is theoretical, just like the losses reported in the past two quarters were. Foreign exchange fluctuations affect the accounting value of a large portion of our long-term debt. Operating income, however, remains positive at over 230,000 $, providing a much better idea of the company’s performance, regardless of market conditions”

Third quarter Financial Review

Revenues for the third quarter ended June 30, 2009 increased by $3.1 million or 75%, compared to the same period of 2008, to reach almost $7.2 million.

Revenues for the third quarter of fiscal 2009 originated from iWeb’s three main service offerings as follows: Dedicated servers accounted for 85%, followed by 9% for co-location services and 6% for the shared web hosting. 78% of iWeb revenues for the quarter were generated in U.S. dollars, a significant advantage for the Company during the last quarter and since the beginning of the year. Compared with the same period 12 months ago, currency fluctuations between the Canadian dollar and the U.S. dollar have had a positive impact of $950 000 on revenues. Without taking into account this impact, revenues still would have increased by 52% compared to the quarter ended on June 30, 2008.

Gross profit was 47% of revenues for the third quarter of 2009, compared to 49% for the same period of the previous year. During the past quarter, the favourable impact of the variation of Canada/U.S. exchange rates on the gross profit margin was more than compensated by higher payroll expenses in order to support the sustained and rapid growth of the Company’s operations.

Operating expenses for the quarter went from 48.6% of revenues in 2008 to 43.3% in 2009.  This improvement is explained by lower costs for selling and administrative expenses compared to the revenues they generate, though compensated by a rise in interest expenses. Selling expenses decreased, from 16.5% in Q3 2008 to 15.5% of revenues for Q3 2009. Administrative expenses decreased from 24.2% to 17.7% of revenues for the quarter. Interest expenses increased significantly, from 7.1% to 9.6% of revenues for the third quarter. This is caused by the increase in long-term debt in order to support the important increase in the Company’s infrastructures, the greater part of which carry interests in U.S. currency.

iWeb’s operating income for the third quarter was $231,000, compared to $21,000 for the third quarter of 2008.

The other financial expenses represent elements which are the consequence of external market conditions. These expenses exceeded $1M for the quarter ended June 30, 2009. The most important element of these expenses is the unrealized exchange loss on the long-term debt of $10 million US. At the end of quarter ended June 30, 2009, the Canada/U.S. exchange rate was 1.16, compared to 1.26 for the beginning of quarter, which explains the unrealized gain of $977,000.

Taking into account the impact of the other financial expenses, the Company recorded a net profit of $1,023,000 for the third quarter of 2009, compared to a net income of $13,000 twelve months earlier, for the quarter ended June 30, 2008.

Key Financial Data (in thousands of Canadian dollars)

Third quarter ended June 30

2009

2008

Revenues

$7,179

$4,108

Gross profit

$3,345

$2,018

Operating income

$231

$21

Net earnings

$1,023

$13

Earnings per share – basic

$0,0366

$0,0005

Adjusted EBITDA[1]

$1,896

$959

As at June 30, 2009

As at September 30, 2008

Total assets

$32,154

$29,361

Shareholders’ equity

$5,796

$6,122

Cash and cash equivalents

$909

$3,261

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

About iWeb Group Inc.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB); for more information please consult the Company’s website: http://about.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.

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

- 30 -

 

For more information

Philip Tousignant
iWeb Group Inc.
Chief Financial Officer
514-286-4242 ext. 149
ptousignant@iweb.com

Bernard Dahl
iWeb Group Inc.
Director, Communications and Public Relations
514-802-2801 (direct)
bdahl@iweb.com

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22nd Quarter of Consecutive Growth for iWeb

Published on at 6:18 pm by Bernard Dahl in: iWeb

With 75% revenue growth, the Internet hosting provider has surpassed its  2008 earnings total after 3 quarters

Third quarter highlights :

  • 75 % revenue growth, totaling 7,2 M$ in the third quarter of 2009, from 4.1 M$ for the same period in 2008
  • Operating income 11 times greater than same quarter in 2008; 231,000 $ compared to 21,000 $ 1 year earlier
  • EBITDA (adjusted EBITDA) remains steady at 1,9 M$ for 2009; 26,4 % of revenues
  • Net profit of 1,023,000 $, mostly attributable to the additional unrealized theoretical exchange gained on long-term debt in U.S. dollars

Growth remains our priority, especially in the current economic climate” says Eric Chouinard, iWeb President and Chairman. He adds “having said that, our shareholders will be happy to see signs of profitability on both EBITDA and operating income”

“Clients are adopting new technologies at the same rate as they were twelve months ago” says Martin Leclair, President, Products and Technologies. “However, we are noticing a much more controlled approach to expense management from our clients, who are discontinuing certain services which they were not using extensively. Experimental projects are a little smaller, which is normal in the current economic context. We are working closely with our clients to optimize their infrastructure so that they can continue innovating.”

“Two important points to highlight are that revenues continue to grow and EBITDA is kept above 25% of revenue” adds Philip Tousignant, Chief Financial Officer. “Granted, this is the first time that iWeb’s net profit has passed the 1 M$ mark, but that figure is theoretical, just like the losses reported in the past two quarters were. Foreign exchange fluctuations affect the accounting value of a large portion of our long-term debt. Operating income, however, remains positive at over 230,000 $, providing a much better idea of the company’s performance, regardless of market conditions”


Key Financial Data (in thousands of Canadian dollars)

Third quarter ended June 30

2009

2008

Revenues

$7,179

$4,108

Gross profit

$3,345

$2,018

Operating income

$231

$21

Net earnings

$1,023

$13

Earnings per share – basic

$0,0366

$0,0005

Adjusted EBITDA[1]

$1,896

$959

As at June 30, 2009

As at September 30, 2008

Total assets

$32,154

$29,361

Shareholders’ equity

$5,796

$6,122

Cash and cash equivalents

$909

$3,261

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

iWeb invited to present at Canaccord Adams 2009 Global Growth Conference

Published on August 12, 2009 at 4:40 pm by Bernard Dahl in: Press Releases

iWeb Group Inc. (TSX.V – IWB), a worldwide provider of Internet hosting services and IT Infrastructure has been invited to make one of the opening presentations on the final day of the Canaccord Adams 2009 Global Growth Conference on Thursday, August 13th 2009 at 8:00 A.M. eastern time.

Eric Chouinard, iWeb’s President and chairman will be presenting iWeb’s perspectives on the future state of Internet services to the investment community at the 29th edition of the conference, which is being held over three days at the InterContinental Hotel in Boston.

Conference Details:

- Canaccord Adams 29th Annual Global Growth Conference
- August 13, 2009
- InterContinental Hotel, Boston, MA
- More information can be found at: www.canaccordadams.com

About iWeb Group Inc. (iweb.com)

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the Company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine. iWeb has also been named one of the top movers and shakers among Canadian IT companies in the 2009 edition of the Branham300.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. Providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB). For more information please consult the Company’s website: http://investors.iweb.com

For further information:

Bernard Dahl
Director, Communications and Public Relations
iWeb Group Inc.
(514) 802-2801
bdahl@iweb.com

Philip Tousignant
Chief Financial Officer
iWeb Group Inc.
(514) 286-4242 ext 149
ptousignant@iweb.com

iWeb’s Financing Proceeds as Planned: Announces Increase to Credit Facility

Published on July 20, 2009 at 4:12 pm by Bernard Dahl in: Press Releases

MONTREAL, QUEBEC, July 20, 2009 iWeb Group Inc. (TSX-V: IWB) has just confirmed the completion of a $3 million financing with BMO Bank of Montreal, one of its major financial partners. The $3 million revolving credit facility is available in term loans, bearing interest of 4.75% as of today, (prime rate plus 2.5%), payable in monthly installments over 42 months.


iWeb intends to use this loan facility to fund servers in the largest of the Company’s three Montreal data centers. According to Philip Tousignant, iWeb’s CFO, this investment in IT infrastructure will continue expanding iWeb’s dedicated hosting service offering, which has passed the 10,000 server mark in March 2009. $1.37 million has been disbursed immediately for servers already in use.

-30-

About iWeb Group Inc. (iweb.com)

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the Company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine. iWeb has also been named one of the top movers and shakers among Canadian IT companies in the 2009 edition of the Branham300.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. Providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB). For more information please consult the Company’s website: http://investors.iweb.com

For further information:

Bernard Dahl
Director, Communications and Public Relations
iWeb Group Inc.
(514) 802-2801
bdahl@iweb.com

Philip Tousignant
Chief Financial Officer
iWeb Group Inc.
(514) 286-4242 ext 149
ptousignant@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.

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

iWeb’s Financing Proceeds as Planned: Announces Increase to Credit Facility

Published on at 4:12 pm by Bernard Dahl in: iWeb

iWeb has just confirmed the completion of a $3 million financing agreement with BMO Bank of Montreal, one of its major financial partners. iWeb intends to use this loan facility to fund servers in the largest of the Company’s three Montreal data centers.

According to Philip Tousignant, iWeb’s CFO, this investment in IT infrastructure will continue expanding iWeb’s dedicated hosting service offering, which has passed the 10,000 server mark in March 2009. $1.37 million has been disbursed immediately for servers already in use.

iWeb strengthens its Managed Services line with strategic acquisition

Published on June 23, 2009 at 9:22 am by Bernard Dahl in: iWeb
iWeb strengthens its product development with the acquisition of Netsimplify, a managed hosting service provider.

iWeb announced the strategic acquisition of Montreal-based managed hosting provider Netsimplify. This move brings iWeb closer to providing its own brand of managed hosting services – which represent the majority of Netsimplify’s revenues in 2008.

“Customers face an increasing complexity in managing their IT infrastructure, and many of our dedicated hosting customers have requested that iWeb provide additional services.” says Eric Chouinard, iWeb’s President and CEO.  “Netsimplify’s customer-driven approach brings a lot of experience, expertise and depth, all of which are important aspects of iWeb’s services”

“This is a logical step towards both cloud computing and managed services” said Martin Leclair, iWeb co-founder and President of Products and Technology. He added that “It is also a homecoming of sorts; Netsimplify’s founder, Simon Boulet, was one of iWeb’s first employees before he left to start his own company nearly three years ago – Welcome back Simon!”.

Simon Boulet will be appointed to the newly created position of IT Manager, from which he will spearhead internal development initiatives.

“We looked at a number of companies and individuals, and Simon was naturally at the top of the list of potential candidates.” Said Cyrille Mertes, Vice-President of IT and Infrastructure. He then points out that “in the medium-term, Simon and the entire infrastructure team will integrate cloud computing and automation into iWeb’s service offering”.

The transfer of Netsimplify’s customers to iWeb is almost complete, a task made easier by the fact that Netsimplify’s infrastructure was mostly colocated within iWeb’s data centers.

iWeb strengthens its Managed Services line with strategic acquisition

Published on at 9:19 am by Bernard Dahl in: Press Releases, iWeb
The dedicated hosting provider strengthens its product development with the acquisition of Netsimplify, a boutique managed hosting service provider.

MONTREAL, QC, June 23 2009 – iWeb announced the strategic acquisition of Montreal-based managed hosting provider Netsimplify. This move brings iWeb closer to providing its own brand of managed hosting services – which represent the majority of Netsimplify’s revenues in 2008.

“Customers face an increasing complexity in managing their IT infrastructure, and many of our dedicated hosting customers have requested that iWeb provide additional services.” says Eric Chouinard, iWeb’s President and CEO.  “Netsimplify’s customer-driven approach brings a lot of experience, expertise and depth, all of which are important aspects of iWeb’s services”

“This is a logical step towards both cloud computing and managed services” said Martin Leclair, iWeb co-founder and President of Products and Technology. He added that “It is also a homecoming of sorts; Netsimplify’s founder, Simon Boulet, was one of iWeb’s first employees before he left to start his own company nearly three years ago – Welcome back Simon!”.

Simon Boulet will be appointed to the newly created position of IT Manager, from which he will spearhead internal development initiatives.

“We looked at a number of companies and individuals, and Simon was naturally at the top of the list of potential candidates.” Said Cyrille Mertes, Vice-President of IT and Infrastructure. He then points out that “in the medium-term, Simon and the entire infrastructure team will integrate cloud computing and automation into iWeb’s service offering”.

The transfer of Netsimplify’s customers to iWeb is almost complete, a task made easier by the fact that Netsimplify’s infrastructure was mostly colocated within iWeb’s data centers. Financial details regarding the transaction were not disclosed.

About iWeb.com:

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. Providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 20,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB), for more information please consult the Company’s website: http://about.iweb.com

For further information, questions and interview requests:

Bernard Dahl
Director, Communications and Public Relations
iWeb Group Inc.
(514) 802-2801
bdahl@iweb.com

Philip Tousignant
Chief Financial Officer
iWeb Group Inc.
(514) 286-4242 ext 149
ptousignant@iweb.com

iWeb moves up in the 2009 PROFIT 100 ranking with 1128% in revenue growth in 5 years

Published on June 11, 2009 at 8:28 am by Bernard Dahl in: iWeb

iWeb has improved its ranking among Canada’s growth leaders, moving up to 85th position from 100th on the Profit100, the annual ranking of Canada’s fastest growing companies based on revenue growth over the past 5 years.

From 2003 to 2008, our revenues have gone from $ 1,384 million to $ 15,616 million as of October 1st 2008. Last year, our 5-year growth totaled 627%, just enough for us to make our way into the 100th position on the annual ranking.

Eric Chouinard said that ”In 2003, shortly before iWeb went public and bought its first data center, we knew everything would become digital. It’s amazing to see how quickly this transition is actually happening!.” He then added “This is a very proud achievement for iWeb. More than anything else, it is the result of teamwork and persistence.”

“Since 2003, we have grown from 15 employees to over 170 today!  The fact that many of those original 15 are still involved with iWeb today says a lot about our environment” commented Martin Leclair. “The biggest challenge has been to continue innovating while managing our growth” he adds.

iWeb’s growth, in numbers*:

  2003 2008 % increase
Employees 15 166 1,107%
Revenues (in thousands $) 1,384 15,616 1,128%
Data center square footage (net) 500 59,000 11,800%
Network Capacity 100 Mbps
(0,1 Gbps)
59 Gbps 59,000%
Dedicated servers 200 11,000 5,500%
Co-location cabinets 4 1,012 25,300%

*rounded figures

The PROFIT 100 is the annual ranking which rates the top 100 Canadian companies based on the percentage of their revenue growth over a 5-year span. Produced by the business magazine PROFIT, 2009 marks the 21st edition of the ranking. The complete list will be published in the June edition, as well as on the website: http://www.profit100.com

iWeb moves up in the 2009 PROFIT 100 ranking with 1128% in revenue growth in 5 years

Published on at 8:16 am by Bernard Dahl in: Press Releases, iWeb

Montreal, Quebec, June 11 2009 – iWeb has improved its ranking among Canada’s growth leaders, moving up to 85th position from 100th on the Profit100, the annual ranking of Canada’s fastest growing companies based on revenue growth over the past 5 years.

From 2003 to 2008, the company’s revenues have gone from $ 1,384 million to $ 15,616 million as of October 1st 2008. Last year, iWeb’s 5-year growth totaled 627%, enough for the IT infrastructure and Internet hosting company to make its entry into the 100th position on the annual ranking.

Eric Chouinard, CEO and co-founder of iWeb; “In 2003, shortly before iWeb went public and bought its first data center, we knew everything would become digital. It’s amazing to see how quickly this transition is actually happening!.” He then adds that “This is a very proud achievement for iWeb. More than anything else, it is the result of teamwork and persistence.”

“Since 2003, we have grown from 15 employees to over 170 today!  The fact that many of those original 15 are still involved with iWeb today says a lot about our environment” comments Martin Leclair, co-President, products and Technology and  iWeb co-founder. “The biggest challenge has been to continue innovating while managing our growth” he adds.

iWeb, who has reported revenue growth exceeding 90% for the first two quarters of 2009, is also becoming an important exporter of IT services, generating over 60% of its revenues from abroad.

iWeb’s growth, in numbers*:

  2003 2008 % increase
Employees 15 166 1,107%
Revenues (in thousands $) 1,384 15,616 1,128%
Data center square footage (net) 500 59,000 11,800%
Network Capacity 100 Mbps
(0,1 Gbps)
59 Gbps 59,000%
Dedicated servers 200 11,000 5,500%
Co-location cabinets 4 1,012 25,300%

*rounded figures

The PROFIT 100 is the annual ranking which rates the top 100 Canadian companies based on the percentage of their revenue growth over a 5-year span. Produced by the business magazine PROFIT, 2009 marks the 21st edition of the ranking. The complete list will be published in the June edition, as well as on the website: http://www.profit100.com

About PROFIT Magazine:
PROFIT: Your Guide to Business Success, is Canada’s preeminent publication dedicated to the management issues and opportunities facing small and mid-sized businesses. For more than 25 years, Canadian entrepreneurs across a vast array of economic sectors have remained loyal to PROFIT because it’s a timely and reliable source of actionable information that helps them increase their revenues, boost their profitability and get the recognition they deserve for generating positive economic and social change. Published six times a year by Rogers Publishing Ltd., PROFIT is distributed almost exclusively to the chief executives of companies with 5 to 250 employees and annual revenue of $1 million to $25 million, reaching 306,000 readers across Canada. Visit PROFIT online at http://www.PROFITmagazine.ca.


About iWeb.com
:
iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 20,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB), for more information please consult the Company’s website: http://about.iweb.com

For further information:
Bernard Dahl
Director, Communications and Public Relations
IWeb Group Inc.
(514) 802-2801
bdahl@iweb.com

Philip Tousignant
Chief Financial Officer
IWeb Group Inc.
(514) 286-4242 ext 149
ptousignant@iweb.com

Beyond the Web: Jean-Luc SansCartier

Published on June 8, 2009 at 5:15 pm by Bernard Dahl in: iWeb

In charge of Visibily and Content Management, Jean-Luc is one of iWeb’s first employees and a hardcore Montreal Canadiens fan.

The day I started working at iWeb, when I opened the door to the office, I met the guy who was passing the vacuum cleaner. It was Eric Chouinard, the President.

I was the guy who did everything, I worked at the reception desk. In the winter, when the office door opened, the cold was unbearable.

We had the loudest doorbell ever, like a hammer+woodpecker combo – especially when Pat kept his finger on it.


I wouldn’t be in Marketing if it wasn’t with iWeb.

Instead of dancing, when the high-school organized dances, we played hockey. Every street in the neighborhood had a team, and the tournaments were really intense.

Mike Modano
was my favorite player. These days I’m very impressed by Marion Gaborik.

Pierre Boivin (President of the Montreal Canadiens) surprised me last year, when he started his conference by telling us we could ask him about anything and everything. Some asked business questions, others asked about Vincent Lecavalier and Mats Sundin.

In fact, the Habs should think about keeping their players from season to season, instead of changing everything every year. A bit of consistency.  (Note: Even when he plays NHL09, Jean-Luc always plays with the Canadiens. Always.)

Terminator scares me a little, because the general idea, the story with the machines, is closer to reality than it is to fiction.

Everything will be online
in 10 years, all the small details of our everyday lives. I hope we won’t lose the human touch, the social contact.

My blog started when I wanted something more personal than the linkdump I had with a buddy – everybody was a lot of fun. Today, I guess we call that a community.

My friendships moved online almost seamlessly, my circle of friends is full of people who are really connected and into technology.

iWeb has become multicultural over the years, and it’s brilliant! It is important to know and learn a little bit about everything, and the best way to learn is through people of all backgrounds.

You can join Jean-Luc on LinkedIn, Twitter, and on his blog. He also handles the iWeb Twitter account and the iWeb blog with Heri.

iWeb and Quebec’s business people

Published on June 3, 2009 at 1:45 pm by Bernard Dahl in: iWeb

This weekend, Jean-Luc and I will be heading to Trois-Rivières (which literally means “Three-Rivers”, about 90 minutes from Montreal) to take part in the RJCCQ’s convention, the RJCCQ is the organization that represents all the Young Chambers of Commerce in the province of Quebec.

This will be iWeb’s second time, last year Jean-Luc and I had a great time with a weekend full of interesting presentations and informal meetings. A combination of pleasure and professional development, really.

This year’s conferences will include Pierre-Karl Péladeau on Friday afternoon, and the next day Eric Chouinard, iWeb President of iWeb will give a conference titled “The Innovative Leader.” Eric is a governor of the RJCCQ, and has been very involved in the organization’s development over the past two years.

Last year, we listened to Pierre Boivin (President of the Montreal Canadiens), Jacques Ménard (Chairman of BMO Nesbitt Burns) and lots of other really interesting people who presented during the weekend – topped off with a gala on Saturday evening (we didn’t know, so we were under-dressed). Friday night, on the other hand, was mostly spent in great company at the hotel’s bar; it took a valiant effort for JL and I to justify the bill when we got back…

Overall, a great experience and we met lots of people with whom we have kept contact. So of course, we’re going back this year, and we’re looking forward to more of the same!

iWeb continues its growth with a 94% increase in second quarter revenues

Published on May 21, 2009 at 7:53 am by Bernard Dahl in: iWeb

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.

iWeb reports revenue increase of 94% in the second quarter; EBITDA of $2 million

Published on at 7:48 am by Bernard Dahl in: Press Releases

MONTREAL, QUEBEC – May 20, 2009 – iWeb (TSX-V: IWB), a global provider of Internet hosting services and IT infrastructure, today released its financial results for the quarter ended March 31, 2009. The complete interim financial statements and management report of the Company are available on the websites www.sedar.com and www.iweb.com.

 

Second Quarter Highlights:

 

  • Growth in revenues of 94%, from $3.6 million to $6.9 million for the second quarter ending March 31, 2009, compared to the same period in 2008
  • Adjusted EBITDA of almost $2,0 million for 2009, i.e. 28.5% of revenues
  • Operating income of $324,000, compared to $6,000 for the same period of the preceding year
  • Net loss of $246,000, following the additional unrealized theoretical exchange lost on long-term debt denominated in U.S. dollars

 

“Our revenue growth is still continuing on the trend of the first quarter with an increase of more than 90% over last year.” said Eric Chouinard, iWeb President and CEO. “In addition, profitability in terms of operation is demonstrated, as indicated by the operating income of more than $300,000 for the last quarter. EBITDA reaches almost $2 million, at nearly 30% of revenues. These are many factors showing the strength of our operations”.

 

“Monthly revenues reach the $2.4 million number for the month of March 2009. But, we have to work harder in order to keep that trend, given the current economic context. We noticed a slowdown in the level of our new net recurring revenues for the last few months, due to the increase in our churn rate. This increase in churn is mainly attributable to present customers who are downsizing their level of services, in order to adjust to the difficult financial times. We believe that these customers will reorder these services when the economy is back on tracks.” adds Martin Leclair, President, Products and Technology.

 

 “In spite of the strong improvement of our operations in terms of profitability, it is still not apparent on our net results.” indicates Philip Tousignant, Chief Financial Officer. “Once again, due to financial expenses resulting from external market conditions totalling $560,000 for the last quarter, we are reporting yet another net loss. The main element of these financial expenses is the unrealized exchange loss on the long-term debt of $10 million US.”

 

 

Second quarter Financial Review

 

Revenues for the second quarter ended March 31, 2009 increased by $3.4 million or 94%, compared to the same period of 2008, to reach almost $6.9 million.

Revenues for the second quarter of fiscal 2009 originated from iWeb’s three main service offerings as follows: Dedicated servers accounted for 85%, followed by 8% for co-location services and 7% for the shared web hosting. 78% of iWeb revenues for the quarter were generated in U.S. dollars, a significant advantage for the Company during the last quarter, as the impact of the decrease in value of the Canadian dollar against the U.S. dollar compared to the same period of last year, had a positive impact of more than $1.0 million on revenues. Without taking into account this impact, revenues would have increased by 65% compared to the quarter ended on March 31, 2008.

Gross profit was 51% of revenues for the second quarter of 2009 compared to 53% for the same period of the previous year. The favourable impact of the variation of Canada/U.S. exchange rates on gross profit margin for the last quarter was more than compensated by higher payroll expenses in order to support the sustained high growth of the Company’s operations.

Operating expenses for the quarter went from 52.1% of revenues in 2008 to 46.3% in 2009.  This improvement is explained by lower costs compared to the revenues for selling and administrative expenses, but compensated by a rise in interest expenses. Selling expenses decreased from 17.3% to 15.3% of revenues for the quarter ended March 31, 2009. Administrative expenses decreased from 26.0% to 20.2% of revenues for the quarter ended March 31, 2009. Interest expenses increased significantly (from 7.2% to 10.9% of revenues for the second quarter of 2009). This is caused by the increase in long-term debt in order to support the important addition of the infrastructures of the Company, the greater part of which carry interests in U.S. currency.

The operating income of the Company was $324,000 for the quarter ended March 31, 2009, compared to $6,000 for the corresponding period of the preceding year. 

The other financial expenses represent elements which are the consequence of the external conditions of the market. These expenses amounted to $560,000 for the last quarter ended March 31, 2009. The most important element of these expenses is the unrealized exchange loss on the long-term debt of $10 million US. For the end of quarter ended March 31, 2009, the Canada/U.S. exchange rate was 1.26, compared to 1.225 for the beginning of quarter, explaining the unrealized loss of $356,000.

Taking into account the impact of the other financial expenses, the Company recorded a net loss of $246,000 for the second quarter of 2009, compared to a net income of $19,000 for the quarter ended March 31, 2008.

 

Key Financial Data (in thousands of Canadian dollars)

 

 

     Second Quarter ended March 31

 

 

 

2009

          2008

Revenues

$6,933

$3,575

 

Gross Profit

$3,545

$1,897

 

Operating income

$324

$6

 

Net earnings (loss)

($246)

$19

 

Earnings (loss) per share – basic

($0.0088)

$0.0007

 

Adjusted EBITDA1

$1,978

$810

 

 

 

 

 

 

As at March 31, 2009

As at September 30, 2008

 

Total assets

$31,268

$29,361

 

Shareholders’ equity

$4,662

$6,122

 

Cash and cash equivalents         

$1,318

$3,261

 

 

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

About iWeb Group Inc.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

 

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB); for more information please consult the Company’s website: http://about.iweb.com

 

iWeb ranked in the top 20 Movers and Shakers among Canadian IT companies in 2009

Published on May 5, 2009 at 9:57 am by Bernard Dahl in: Press Releases, iWeb

iWeb, a global provider of internet hosting service and IT infrastructure, has been ranked 8th among Canada’s top 20 movers and shakers in the 2009 Branham300, the annual listing of the top 300 Canadian Technology companies. With its 59% increase in revenue in 2008, iWeb’s overall ranking has improved by 33 positions, moving it up to 162nd, from 195th in the 2008 ranking.

“We are very excited to be recognized as one of Canada’s top IT companies this year again, we are particularly pleased to be ranked among the companies having experienced the biggest growth over the past 12 months.” said Eric Chouinard, President and CEO of iWeb. He added that “iWeb’s 59% growth compares well to the 22% average growth rate for companies appearing on the 2009 Branham300″

Overcoming increasing economic pressures, the Canadian ICT elite collectively generating $75.97 billion in revenue, an 18 per cent growth from the previous year’s total.

The Montreal-based company was ranked in the ICT Hardware and Infrastructure category. iWeb, who recently announced a 92% increase in first quarter revenues, is a finalist for an OCTAS award in May, and has recently announced that it has reached the 10,000 dedicated server mark. Since becoming a public company in 2004, iWeb has been steadily growing to become one of Canada’s largest IP hosting firms.

 

About iWeb

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 20,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB), for more information please consult the Company’s website.

About Branham Group Inc.

Branham Group Inc. (www.branhamgroup.com) is a leading strategic marketing consulting firm servicing the global information technology marketplace. Branham Group assists information technology companies and related institutions in achieving market success through its custom consulting services (Planning, Marketing, and Partnering), and through its multi-client research projects (eHealth, Outsourcing, and Wireless). Branham annually produces a listing of the top information technology companies in Canada. To view a complete list of the Top300, visit www.branham300.com.

iWeb featured on Canal Argent

Published on April 23, 2009 at 6:52 am by Bernard Dahl in: Press Releases, iWeb

Canal Argent, a cable channel covering finance and business, today interviewed Mr. Bernard Dahl, Director of Communications at iWeb, about the 10.000th server milestone reached at iWeb.

Bernard Dahl interviewed on Canal Argent: iWeb reaches 10,000 dedicated server milestone (Bernard Dahl is Director, Public Relations for iWeb.com, a Montreal Internet hosting company)

Click on the image or here to view the interview (in French). Bernard Dahl presents the company, the advantages of managed hosting, and also future outlooks for the company (hint: they are bright)

iWeb reaches the 10,000 Server Milestone

Published on April 21, 2009 at 11:20 am by Bernard Dahl in: Press Releases, iWeb

Eric Chouinard and Martin Leclair, iWeb co-founders

The company has more than tripled its server count over three years

Montreal, Quebec, April 21 – iWeb announced today that it has reached the mark of over 10,000 dedicated servers hosted for its customers. The rise of media-rich applications available online, combined with the demand for increased IT capacity has grown the Internet hosting provider’s footprint from 3000 servers in 2006 to over 10,000 dedicated servers today.

The fact is that many companies today are using IP-based technologies to keep IT spending under control, or to reduce spending. IT budget restrictions mean that the companies we work with are outsourcing their infrastructure to iWeb instead of financing their servers, maintaining them and building their own data centers.” says Eric Chouinard, iWeb’s President and CEO. He adds that “because they have trusted iWeb with the management of their servers, iWeb’s customers can focus on their core business.”

iWeb, who provides hosted dedicated servers as a monthly service, has seen its revenues increase at least 60% every year since 2003.

“When iWeb started providing dedicated server hosting in 2002, it was as an experiment, 10,000 servers later it has become iWeb’s core business” says iWeb’s President of Products and Technology, Martin Leclair. “iWeb is now in a position to start creating a server product that has even more value for the customer” confirms the enthusiastic co-founder of iWeb.

The Montreal-based company, who recently announced a 92% increase in first quarter revenues, will be rolling out theme-based marketing campaigns, revolving around the number 10,000, to promote its dedicated server hosting services.

Since becoming a public company in 2004, iWeb has been steadily growing to become one of Canada’s largest IP hosting firms.


About iWeb

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

 

 

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 20,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB), for more information please consult the Company’s website: http://about.iweb.com
 
 

 

 

 

 
 

 

 

Marc Guindon is appointed to iWeb’s board of directors

Published on March 31, 2009 at 9:01 pm by Bernard Dahl in: Press Releases, iWeb

Marc Guindon

MONTRÉAL, QUÉBEC – March 31, 2009 – Following a unanimous vote by all shareholders attending the iWeb Group inc. Annual meeting, held on March 26th, iWeb proudly appointed Marc Guindon as a director of iWeb.

“Marc has been such an important element of iWeb’s financial management since we went public in 2004” says Eric Chouinard, iWeb’s President and CEO, “his experience will continue to be a great asset now that he is a member of the board; we are happy that iWeb’s shareholders feel the same way.” shared the enthusiastic entrepreneur.

Marc Guindon, a member of the Order of Chartered Accountants of Québec and Ontario, joined iWeb in 2004 as Chief Financial Officer, and became Executive Vice-President Resources in October 2008. Having spent the early stages of his career at Ernst & Young, Mr. Guindon then joined the SNC Group as Vice-President of Finance, later filling the same position at Canam-Manac. Later creating two groups of industrial companies, he sold his interests and retired in 1996, before joining iWeb.

About iWeb Group Inc.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 160 full-time employees. providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 20,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB), for more information please consult the Company’s website: http://about.iweb.com

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iWeb finance – growth continues in first quarter

Published on February 27, 2009 at 3:15 pm by Bernard Dahl in: iWeb

This morning iWeb sent out a press release with the results for the first quarter of the 2009 fiscal year. Our growth, which is defined in revenue (or income) remains strong and consistent; our numbers have almost doubled compared to the first quarter of 2008; 92% growth, to be exact. 

As Martin and Eric, iWeb’s 2 co-founders, explain in the press release, this is the result of hard work, and the current economic situation means that we have to work hard to earn every new customer – but it also means that people are expecting more value for their hosting dollar, which is pretty much a good thing.

The press release also included talk about the re-engineering of our customer service department, which has started delivering results – the restructuring should be complete in September. As Eric explained during iWeb’s first ever conference call with Financial analysts, “supporting 20 000 customers is very different than supporting 5 000 customers”.  Indeed it is; it’s not just a question of simply adding more people – that would be too easy…

The press release also mentions that iWeb lost 1.2 M$, but only theoretically. Huh?

Here is how that works out: last year iWeb completed a financing deal with Investment Banking Giant Goldman Sachs, which included 10M$ USD in debt, due in 5 years. At the time, that meant more or less 10,6 Million in Canadian dollars. Because the exchange rate has changed in the last quarter (October, November and December), that 10 Million USD is now closer to 12 Million is CAD$ – except that the debt is only due in 5 years. So in reality nothing has changed, really, except the theoretical cost of repaying our debt, if the exchange rate does not change in the next 5 years. Accounting rules say that we have to declare this difference right away, which is the reason for our loss.

Without the theoretical loss, iWeb’s numbers are pretty much at break even (11 K$ profit, in fact), and EBITDA doubled to 1.6 M$.

iWeb revenue increased 92% in the first quarter

Published on at 12:07 pm by Bernard Dahl in: Press Releases, iWeb

MONTREAL, QUEBEC – February 27, 2009 - iWeb (TSX-V: IWB), a global provider of Internet hosting services and IT infrastructure, today released its financial results for the quarter ended December 31, 2008. The complete interim financial statements and management report of the Company are available on the websites www.sedar.com and investors.iweb.com.

 
First Quarter Highlights:
 
  • Revenue increased 92% to $6.1 million for the quarter ended December 31, 2008, compared to revenues of $3.2 million for the same period in 2007
  • Adjusted EBITDA grew to $1.6 million, or 26% of revenues
  • New annual recurring revenues of $2.8 million generated during the first quarter.
  • Operating income at break-even
  • Net loss of $1.2 million, after taking into account the unrealized, theoretical exchange lost on the long-term debt denominated in U.S. dollars
 
“Our revenues are continuing their rapid growth, constantly reaching new heights.” proudly states Eric Chouinard, iWeb President and CEO. “Since November, our monthly billing has exceeded $2 million!  With new annual recurring revenues of $2.8 million generated in Q1 and a more favorable CAD/USD exchange rate, we are maintaining the pace of our growth plan.
 
“Given the current economic context, we are constantly adapting our marketing strategies to generate new revenues,” adds Martin Leclair, President, Products and Technology. “We are also actively working on the major restructuring of customer service, which now operates with three distinct and specialized groups. With 24/7 availability required for support services, the planned structure is already showing signs of success; all of which is aimed at helping our clients and improving the support we provide with our services. “
 
 ”Our operating results clearly show a stable level of profitability,” said Philip Tousignant, Chief Financial Officer. “We are still above the break-even point and our Adjusted EBITDA has doubled since last year, totaling $1.6 million; that’s 26% of revenue. However, the accounting results show a significant loss for the quarter, following the booking of financial expenses resulting from external market conditions. These costs amount to $1.4 million for the last quarter, the most important element of which is the unrealized exchange loss on the long-term debt of $10MUSD. Since the long-term debt is in USD, it is affected by the current exchange rate. During the quarter, the CAD/USD exchange rate rose from 1.06 to 1.225, causing the unrealized loss of $1.6 million on long-term debt. “
 
 
First quarter Financial Review
 
Revenues for the quarter ended December 31, 2008 reached $6.1 million, an increase of $2.9 million. It is 92% higher than revenues recorded for the same period twelve months earlier.
 
Income for the first quarter of fiscal 2009 originated from iWeb’s three main service offerings as follows: Dedicated servers accounted for 85%, followed by 8% for co-location services and 7% for the shared web hosting. 78% of revenues for the quarter were generated in U.S. dollars, a significant advantage for the Company given the weakness of the Canadian dollar to the U.S. dollar. Compared to the same period of the previous year, this has had a positive impact of $720,000 on earnings. Even excluding this, revenues would still have increased by 69% compared to the same quarter one year ago.
 
iWeb’s gross profit margin for the quarter was 52% of revenue, compared to 54% for the first quarter of fiscal 2008. The favorable impact of CAD/USD currency fluctuations on the gross margin for the quarter was more than offset by higher wages to support the growth of operations, more specifically a major restructuring of customer service, including the creation of three distinct levels of support services (informative, application and technical). Ensuring the “24/7″ availability of staff resources in all three groups resulted in a considerable increase of salaries for this department compared with December 2007. The gross profit margin decrease also reflects the cost of implementing the iWeb-CO data center, for which the revenues are still at the start-up stage.
 
Overhead costs for the quarter decreased from 53.3% of revenues in 2007 to 51.8% in 2008, the result of lower for selling and administrative costs compared to revenue, although interest expense was higher.
 
Operating income for the Company amounted to $11,000 for the quarter ended December 31, 2008, compared to $19,000 for the corresponding period of the previous year
 
The net results were affected by other financial costs, mostly the result of external market conditions. These costs amounted to $1.4 million for the last quarter. The main element of these expenses is the unrealized exchange loss on the long-term debt of $10MUSD. The Company did not hedge this debt, but plans to do so during the remaining five-year period, when the exchange rate will be more favorable. A one-cent variation in the Canada/US exchange rate would generate an unrealized exchange gain or loss on long-term debt of $100,000. Such a gain or loss must be accounted for in the quarter where the exchange rate variation is observed even though the gain or loss is not realized, and may never be. For the quarter ended 31 December 2008, the exchange rate CAD/USD rose from 1.06 in 1.225, resulting in the unrealized loss of $1.6 million.
 
In addition, a foreign exchange gain of $335,000, realized and unrealized, was recorded during the last quarter. Net assets, denominated in USD during the quarter, resulted in this gain.
 
Finally, a decrease in the risk-free interest rates of similar maturity date as the derivative embedded in the long-term debt resulted in a rise of the fair value of such derivative. Since September 30, 2008, the risk-free interest rate used for the fair value calculation went from 3.0% to 1.3%, resulting in a $98,000 effect on the Company’s results.
 
After these financial charges, the Company recorded a net loss of $1.2 million in the first quarter compared to net income of $18,000 last year.
 
Key Financial Data (in thousands of Canadian dollars)

 

 
First Quarter ended December 31
 
 
 
2008
 2007
Revenues
$6,075
$3,172
 
Gross Profit
$3,155
$1,710
 
Operating income
$11
$19
 
Net earnings (loss)
($1,248)
$18
 
Earnings (loss) per share – basic
($0.0447)
$0.0007
 
Adjusted EBITDA1
$1,564
$778
 
 
 
 
 
 
As at December 31, 2008
As at September 30, 2008
 
Total assets
$29,696
$29,361
 
Shareholders’ equity
$4,817
$6,122
 
Cash and term deposits         
$1,310
$3,779
 

 

 
1- The Company defines Adjusted EBITDA as Earnings before financial expenses, income taxes, depreciation and amortization, and stock-based compensation.
 
About iWeb Group Inc.
iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.
 
Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 160 full-time employees providing Dedicated Server HostingCo-location and Web Hosting services to more than 20,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB), for more information please consult the Company’s website:http://about.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.

 
 

For more information

 
 
Philip Tousignant
Bernard Dahl
iWeb Group Inc.
iWeb Group Inc.
Chief Financial Officer
Director, Communications and Public Relations
514-286-4242 ext. 149
514-286-4242 ext. 115
ptousignant@iweb.com
bdahl@iweb.com

 
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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iWeb to release fiscal 2009 first quarter results on Friday, February 27

Published on February 24, 2009 at 9:41 am by Bernard Dahl in: Press Releases, iWeb

MONTREAL, Feb. 24 – iWeb Group Inc. (TSX-V: IWB), iWeb, a global provider of Internet hosting service and IT infrastructure, will release results for its first quarter of fiscal 2009 on Friday, February 27th 2009 before the markets open. Management will host a conference call and question-and-answer session to discuss earnings at 10:30 A.M. (EST).

President and CEO Eric Chouinard, Executive Vice President Marc Guindon and CFO Philip Tousignant will be present to discuss iWeb’s financial results for the first quarter ended December 31, 2008, and then take questions from securities analysts.

To access the conference call by telephone, dial 1-800-595-8550. Please connect approximately 15 minutes prior to the beginning of the call. The conference call will be archived for replay until Friday, March 6, 2009, at midnight. To access the archived conference call, dial 416-640-1917 or toll-free 1-877-289-8525 and enter the reservation number: 21299079 followed by the number sign.

 

About iWeb Group Inc.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 150 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 19,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB), for more information please consult the Company’s website: investors.iweb.com

 

For further information:

Philip Tousignant
Chief Financial Officer
iWeb Group Inc.
(514) 286-4242 ext. 149
ptousignant@iweb.com

Bernard Dahl
Director, Communications and Public Relations
iWeb Group Inc.
(514) 286-4242 ext. 115
bdahl@iweb.com

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iWeb Reports Year-End Results for 2008.

Published on January 20, 2009 at 1:12 pm by Bernard Dahl in: Press Releases, iWeb

A milestone year for the Montreal web hosting company: a 59% revenue increase, opening of a third data center and closing of a major financing deal with Goldman Sachs.

MONTREAL, QUEBEC – January 20, 2009 – iWeb, a global provider of Internet hosting service and IT infrastructure, today released its audited financial results for the fiscal year ended September 30, 2008. In line with its growth strategy, revenue increased 59% to $15.6 million and EBITDA grew to $3.7 million, though a weak US dollar and charges related to early debt repayment combined to produce the Company’s first net loss.

“The revenue increase is an excellent result, in line with our growth strategy. This has certainly been our most challenging year, as our sustained growth has consistently created new challenges and opportunities,” said Eric Chouinard, President and CEO of iWeb. “The key to reaching our main strategic targets has been our flexibility and the strong work ethic of our team. Our sales growth is consistent, and with the punctual opening of our third data center and the final expansion phase of the second one, we are meeting demand and helping our clients succeed online through these uncertain times.”

Martin Leclair, iWeb co-founder and President, Products and Technology added that “The IP hosting market remains vibrant and active, a powerful statement considering the roller-coaster events of the past twelve months. A good sign is our net recurring revenues, which are improving in the three first months of new new fiscal year.”

Recently appointed Chief Financial Officer Philip Tousignant confirmed that iWeb’s first net loss is the result of two factors, “As a result of the financing agreement with Goldman Sachs, we incurred charges from our other financial partners; penalties related to early debt repayment, basically.” The other significant factor is the record devaluation of the US dollar compared to the Canadian dollar during that period; “Almost 80% of iWeb’s revenues are in USD” added Mr. Tousignant, “which has had a net negative impact of $865,000 before income taxes on our results for the year compared to last year results. A good thing though, the situation seems to have returned recently to a more favourable conversion rate for our operations.”

Financial Highlights

  • Record revenue total of $15.6 million, a 59% improvement
  • EBITDA increases to $3.7 million, 24% of revenue.
  • Net loss of $552,000
  • $22 million US financial agreement with Goldman Sachs in August
  • $4.1 million public offering in November 2007

Operational Highlights

  • Opened third Montreal Data center for co-location services
  • Tripled Network capacity and expanded IP network to 8 carriers
  • Second Data center began Phase IV (Final Phase) of its deployment, total capacity will be 12,000 dedicated servers and 122 cabinets

Corporate Highlights

  • iWeb named to TSX Venture 50, Profit 100 and Branham 300.
  • Inaugurated new Headquarters in September, with Montreal Mayor Gerald Tremblay and Nicole Menard, then Parliamentary Assistant of the Minister of Economic Development of Quebec addressing iWeb’s staff, clients and partners and shareholders.

 

(more…)

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iWeb’s network reaches 50 Gbps

Published on January 19, 2009 at 4:19 pm by Bernard Dahl in: Press Releases, iWeb

IP network capacity has quintupled over the past year.

Montreal, Quebec, January 19 – With its most recent expansion, iWeb’s network now totals 50 Gbps. In order to meet a constantly greater demand for bandwidth from clients with web-based applications such as Software-as-a-Service (SaaS) and video services, the global internet hosting provider’s network has more than quintupled in the past year, growing from 9 Gbps to 50 Gbps today.

“The fact is that many companies today are using web-based technologies to keep IT spending under control, or to reduce spending. IT budget restrictions mean that the companies we work with are outsourcing their infrastructure to iWeb faster than planned in order to meet their targets.” says Eric Chouinard, iWeb’s President and CEO. He adds that “New technologies are increasingly web-based, and our clients require more bandwidth every month.”

The network combines a total of 9 major telecommunications carriers into iWeb’s award-winning network, which uses BGP routing to ensure performance and reliability.
“Combined with the ever increasing bandwidth requirements of newer applications, we are constantly surprised with some of the innovative solutions our clients have put online – things we would not have imagined 5 years ago!” says iWeb’s President of Products and Technology, Martin Leclair. “Capacity is scheduled to increase again shortly and continually throughout the coming year, which is a clear indication of the direction in which technologies are heading – everything is going online” confirms the enthusiastic co-founder of iWeb. 

The Montreal-based company, whose financial results are scheduled to be published later this week, will be rolling out marketing campaigns to promote related bandwidth and dedicated server hosting services. Since becoming a public company in 2004, iWeb has been steadily growing to become one of Canada’s largest IP hosting firms.

About iWeb

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, and is listed on the TSX Venture Exchange (IWB.V). With three secure data centers, all in Montreal, iWeb has carved out an enviable position on the international scene with more than 60% of its revenues from abroad. 

Founded in 1996 in Montreal, iWeb has recently completed a $22M financing agreement with investment banking giant Goldman Sachs. iWeb now has over 150 full-time employees providing Dedicated Server hosting, Co-location and Web Hosting services to more than 17 000 customers in 145 countries. More information is available at the company’s website: http://iweb.com/about-us/

For more information: 

Bernard Dahl
Director, Communications and Public Relations
iWeb Group Inc.
514-286-4242 ext 115
bdahl@iweb.com

Philip Tousignant
Chief Financial Officer
iWeb Group Inc.
514-286-4242 ext 149 
ptousignant@iweb.com

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