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2006-06-01
PEER 1 Network Announces Third Quarter Results
PEER 1 Network Enterprises, Inc. (TSX VENTURE:PIX.V), a provider of high-performance Internet infrastructure, released the company’s third quarter financial results for fiscal year 2006, for the three months ended March 31, 2006.
Highlights from the quarter include the following (all figures are reported in US dollars):
- PEER 1’s revenue increased 202% to $17.63 million for the three months ended March 31, 2006, compared to $5.84 million for the three month period ended March 31, 2005;
- Gross margin was $6.20 million for the three months ended March 31, 2006, an increase of $3.91 million from $2.29 for the three months ended March 31, 2005;
- Normalized EBITDA of $3.63 million for the three months ending March 31, 2006.
- Loss for the three months ended March 31, 2006 was $0.35 million compared to a loss of $0.95 million for the three months ended March 31, 2005
- Cash flow from operations for the three months ended March 31, 2006 was $2.64 million, compared to $0.27 million for the three months ended March 31, 2005;
- During the quarter, PEER 1 appointed Gary N Sherlock as Chief Financial Officer.
Full copies of the Financial Report and Management Discussion & Analysis can be found at http://www.sedar.com within 24 hours.
PEER 1 has also announced that it has signed a lease for additional data center space in San Antonio, Texas. ServerBeach Ltd, PEER 1’s self-managed dedicated server subsidiary, currently houses servers and equipment in two data centers in San Antonio, both of which are full. The expansion will allow ServerBeach to consolidate all servers and employees into one central location. With more than three times the combined capacity of the existing facilities, the new data center space will provide ample room for future growth.
In addition to releasing third quarter financial results, PEER 1 also announced the appointment of Mr Bill White to the newly created position of Chief Information Officer. Mr White joins PEER 1 with more than 30 years of experience in information technology and brings with him extensive experience in project management, organizational change initiatives and business requirements analysis.
“Expanding our operations, delivering improved financial performance and strengthening our senior management team are all part of PEER 1’s plan to create sustainable shareholder value,” said Fabio M. Banducci, PEER 1’s executive Vice President. “We are very pleased with the progress that we made during our third quarter.”
Non-GAAP Measures
PEER 1 reports EBITDA because it is a key measure used by management to evaluate the Company’s performance. PEER 1 believes that EBITDA is useful supplemental information as it provides an indication of the results generated by PEER 1’s main business activities prior to taking into consideration how those activities are financed and expensed. EBITDA is not a recognized measure under Canadian GAAP, and accordingly investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with Canadian GAAP as an indicator of financial performance of PEER 1 or as a measure of the company’s liquidity and cash flows. PEER 1’s method of calculating EBITDA differs from other issuers and, accordingly, EBITDA may not be comparable to similar measures presented by other issuers. The schedule above sets out PEER 1’s EBITDA calculations.
About PEER 1
PEER 1, a leading Internet infrastructure solutions company, provides full services to handle the needs of customers requiring 100% uptime for their online presence including network, co-location, and dedicated hosting services. Since its inception in 1999, the company has grown to include data centers and network points of presence in 16 major cities across North America and Europe, all connected by PEER 1’s world class IP (Internet Protocol) network. PEER 1 serves a variety of customers including hosting providers, online gaming companies, Internet phone (VoIP) companies and many small and medium-sized businesses. The company’s headquarters are in Vancouver, Canada and the stock is traded on the TSX Venture exchange under the symbol PIX. For more information visit http://www.peer1.com.
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in Peer 1’s public filings with securities regulatory authorities.
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