(WEB HOST INDUSTRY REVIEW) — Web hosting provider Alentus Corporation (www.alentus.com) has announced the third quarter results, ending September 30, 2009, which shows revenue of $1.656 million, however, it still has a negative net income deficit of more than $360 thousand.
“The third quarter of 2009 showed an improvement in revenue to $1,656,294 from the second quarter level of $1,607,903. This was primarily due to the ramping up of our recently acquired Route Sense division,” Alentus chief executive officer William King said in a statement. “The company will continue to work hard increasing revenues and earnings in the next twelve months across all of its brands.”
*Normalized EBITDA for the third quarter includes an adjustment of $34,704 to reflect non-cash stock compensation, $118,652 for depreciation and $220,041 interest primarily associated with acquisition debt.
King added, “Due to the cost cutting that has taken place over the past couple of quarters we expect to improve our gross margin during the rest of the year. That, coupled with our expected balance sheet restructuring in the fourth quarter, should lead to an overall increase in net income in 2010. We are very excited going into 2010 as we add new revenue producing product lines such as domain registration services and cloud computing.”
According to MSPmentor, Alentus could be poised to rollup small firms in the hosting and managed services sector. Rollups are common in fragmented and consolidating markets, and are more common in times of economic downturn as part of a market consolidation process.
MSPmentor said Alentus is looking to make more acquisitions and rollups would be a logical step for the global provider of web hosting, dedicated servers, virtual private servers, Microsoft Exchange and sharepoint hosting, IP transit, and collocation, with plans to add domain registration and cloud computing to its services mix.
Alentus’ unaudited report on its Q3 results can be read in its entirety online.
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