Apptix Announces Q1 2007 Results
Q1 2007 Highlights - Record Bookings Help Maintain EBITDANeutrality While Investing for the Future
Herndon, Virginia and Oslo, Norway - May 9, 2007
Financial Highlights
Recurring revenue grew by 7% over the fourth quarter of 2006 to $7.82 million in the first quarter of 2007 and top line revenue also grew by 7% to $8.3 million in the same period. The organic recurring revenue and top-line growth in Q1 over Q4 was 11% on a pro forma basis, taking into account channel contract terminations at the end of Q4 2006. The revenue loss from these contract terminations was offset by strong organic growth in small and medium-sized business (SMB) bookings across the Company's operating divisions, as well increased SharePointSite bookings.
EBITDA decreased to a loss of $0.12 million from a 2006 fourth quarter gain of $0.2 million. Net loss decreased to $1.49 million compared to a loss in the fourth quarter of 2006 of $0.79 million. Operating expenses increased $0.78 million, or 12%, to $7.3 million in Q1 2007 compared to $6.5 million in Q4. The increase in operating expenses, and accordingly the reduction in EBITDA and Net Loss, relate primarily to investments the Company made in conjunction with the development and deployment of its Exchange 2007 platform. The Company plans to consolidate all existing operating divisions on this platform beginning in the second half of 2007.
The Company closed the fourth quarter with $1.9 million in cash exclusive of $4.75 million, net of cash used to acquire WebMessenger, Inc., raised in the company's recent equity offering.
Key Accomplishments
- Launch of VoIP Services - In March the Company
introduced Apptix Voice, a new hosted Voice over
Internet Protocol (VoIP) solution, to provide customers
with reliable, affordable and feature-rich IP telephony
services. As previously announced, Apptix Voice is
initially available through its MailStreet division and
is built on the enterprise-class BroadSoft platform.
Apptix Voice will be delivered through a Software as a
Service model similar to the Company's email and
collaboration solutions.
- Sales Success - The Company set another sales record
in Q1, booking approximately 25,900 seats of Exchange,
an increase of 6% over the fourth quarter of 2006.
MailStreet, ASP-One and Mi8 were the primary growth
drivers within the direct business.
Accounting Disclosure
The Financial Information has been prepared in accordance with IAS 34 - Interim Financial Reporting (IFRS). The group quarterly accounts have been prepared in accordance with the same principles as the annual financial statements (IFRS).
Financial statements may be reviewed in their entirety at http://investor.sharepoint.apptix.net/default.aspx.
