August 14, 2007 — (WEB HOST INDUSTRY REVIEW) — Web hosting provider Hostopia (hostopia.com) announced on Monday it has released its unaudited financial results for the first quarter ended June 30. The results shows the company has seen a Q1 revenue increase of 15.9 percent year over year, 6.8 percent sequentially from Q4, the 29th consecutive quarter of increasing revenue and the 15th consecutive quarter of positive operating income.
The results also include such highlights as Hostopia’s acquiring leading wireless syncing technology from Nexthaus, the addition of 3,000 end users and 375,000 email accounts and subsequent to the end of the quarter, the company entered into a patent license agreement with j2 Global Communications for fax-to-email services.
“The company showed good revenue growth, driven by the 375,000 email accounts we migrated in the quarter,” says Colin Campbell, Hostopia’s CEO. “Operationally we also made significant progress preparing for a very large United Kingdom website migration that will be largely completed in our second quarter. These migrations on their completion will help accelerate our revenue growth and improve our profitability over the remainder of the year.”
Revenues increased 15.9 percent to $6.3 million in the three months ended June 30 compared to the same period last year, while gross profit of $5.4 million increased by $660,000 in the first quarter compared to last year as higher revenues were partially offset by a 1.5 percent decline in gross margin. Finally, income before interest and income taxes was $385,000, a decrease of $411,000 compared to the first quarter of last year.
As revenues continue to increase, both from existing and expanding customer base as well as additional product offerings, Hostopia says it anticipates quarterly income before interest and taxes will improve back towards and then through the level achieved in fiscal 2007.
Hostopia announced earlier this month it entered into a patent license agreement with j2 Global Communications.
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