Apptix Announces Q2 2007 Results
Q2 2007 Highlights - 7th Consecutive Record Quarter - Record SMB Bookings Drive Improvement in ALL Key Performance IndicatorsHerndon, Virginia and Oslo, Norway - August 15, 2007
Apptix continued its strong growth trend with improvement in Recurring Revenue, Top-line Revenue, Gross Margin, Net Seats, Revenue Retention, and Average Revenue Per User (ARPU). In addition, the WebMessenger acquisition added Mobile Instant Messaging and Presence Management technology to Apptix's portfolio of on-demand business communications solutions, further extending the company's robust portfolio of solutions for small and medium-sized businesses (SMBs).
Financial Highlights
Recurring revenue grew by 12% over the first quarter of 2007 to $8.74 million in the second quarter of 2007 and top-line revenue grew by 9% to $9.04 million in the same period. The growth in recurring revenue in the second quarter over the first quarter of 2007 reflects continued strong bookings across each of the Company's divisions - ASP-One, MailStreet, Mi8 and SharePointSite. Recurring revenue grew $4.78 million, or 121%, and top-line revenue grew by $4.9 million, or 118%, over the second quarter of 2006 as a result of both strong organic growth across the Company's divisions during the period and the consolidation of Mi8, Inc. and WebMessenger, Inc., which were acquired in September 2006 and April 2007 respectively.
EBITDA in the second quarter of 2007 was a loss of $0.31 million compared to a loss of $0.12 million in the first quarter. The Company's net loss in the second quarter of 2007 was $1.74 million compared to a loss in the first quarter of $1.49 million. The reduction in EBITDA and increase in net loss relate to increased operating expenses, as explained below, offset in part by increased gross margin attributable to the growth in recurring revenue. EBITDA improved by $0.65 million or 68% from a loss of $0.96 million in Q2 2006 primarily as a result of increased revenues during the same period.
On a pro forma basis, EBITDA in the second quarter of 2007 was a positive $0.22 million (excluding WebMessenger and the operating lease expenses discussed above) compared to a loss of $0.12 million in the first quarter.
Operating expenses increased $0.96 million, or 13%, to $8.3 million in the second quarter compared to $7.3 million in the first quarter of 2007. The increase in operating expenses relate primarily to the consolidation of the operating costs of WebMessenger, which the Company acquired on April 30, 2007, and an operating lease related to equipment purchases in conjunction with the development and deployment of its Exchange 2007 platform. The Company plans to consolidate its Exchange operations on this platform beginning in the fourth quarter of 2007. Operating expenses increased $3.2 million, or 73%, in the second quarter compared to $4.4 million in the second quarter of 2006 primarily as a result both organic growth during the period and growth attributable to the consolidation of Mi8, Inc. and WebMessenger, Inc., which were acquired in September 2006 and April 2007 respectively.
Cash used in the second quarter was $0.70 million, net of the WebMessenger acquisition and related financing discussed below and proceeds from equipment financing. The Company closed the second quarter with $6.1 million in cash.
Key Accomplishments
- WebMessenger Acquisition and Related Financing - The
Company completed the acquisition of WebMessenger, Inc.,
a technology leader in Mobile Instant Messaging and
Presence Management, for $7 million on April 30, 2007.
In conjunction with the acquisition, the Company raised
approximately $9 million through a private placement to
fund the first payment of the purchase price and ongoing
operations.
- Net Growth in Seats - The Company's history of
bookings growth across its divisions of MailStreet,
ASP-One and Mi8 continued in the second quarter,
resulting in a net increase in provisioned seats of 8%
compared to 4% in the first quarter, and an increase in
monthly recurring revenue of 12% compared to 7% in the
first quarter.
- Initial Success with VoIP Services - In late 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. Offered through its MailStreet
division, the Company has experienced a strong level of
initial success as demonstrated by the addition of 23
customers of Apptix Voice in the second quarter.
- SharePointSite - SharePointSite set a record for new
and upgraded site bookings in Q2 with 764 sites, an
increase of 44% over the first quarter.
The Financial Information has been prepared in accordance with IAS 34 - Interim Financial Reporting Standards (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
