(WEB HOST INDUSTRY REVIEW) — Small business services and financial product provider Newtek Business Services (www.newtekbusinessservices.com), which owns Web host Crystaltech (www.crystaltech.com), has reported today its financial results for the quarter ended September 30, 2010, with total consolidated revenue totalling $29.2 million, a 9 percent growth compared to the same quarter last year.
According to Newtek’s earnings report released Wednesday, its electronic payment processing business segment increased 13 percent revenue over the same period in 2009, and its Web hosting segment revenue increased one percent. Both segments also reported 24 percent pre-tax income growth.
Newtek bought CrystalTech in 2004 for a total of $10 million in cash and $250,000 in Newtek common stock with additional payments based on the unit’s performance.
Total revenue from Newtek’s three core business services segments, which include electronic payment processing, Web hosting and small business finance, increased to $28.3 million, or 16 percent, in the third quarter of 2010 compared with $24.3 million for the third quarter of 2009.
“We are thrilled to report our third quarter results and equally determined to continue to push forward with our successful business plan and strategy,” Newtek chairman, president and chief executive officer Barry Sloane said. “Our favorable third quarter 2010 results and forecast for 2011 are due to our great business performance, strategy and management’s confidence in its ability to execute on its business plan and model.”
Sloane said growth and profitability has been driven by the company’s “business model, available capital, proven track record within a difficult economic environment, great operational scale and our processing capability.”
In the coming months, the company is continuing its focus on small business services, the company announced Wednesday that it is launching a new “Small Business Authority” website in early January 2011, along with The Small Business Authority Index and The Small Business Authority Market Sentiment Survey.
For the 2011 fiscal year, Newtek expects consolidated revenues to be between $124.4 million and $130.8 million, and pre-tax income of between $2 million and $5 million.
No related posts.
