iWeb Communities: Blog

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 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

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)

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

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)

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

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

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 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*:

*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

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*:

*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

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.

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!

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.

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)

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, 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.

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.

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)

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.