Rocky Mountain Internet Announces Preliminary 1st Quarter Results
PR Newswire - May 20, 1997 06:00
FINANCIAL RMIIU CPR ERN V%PRN P%PRN
Revenues Increase Approximately 146%; Sequential Loss Narrows
DENVER, May 20 /PRNewswire/ -- Rocky Mountain Internet, Inc.
(Nasdaq: RMIIU, RMII, RMIIW), a leading provider of premier Internet and Web
services to businesses throughout the Rocky Mountain Region, today announced
preliminary performance including an approximate 146% increase in total
revenue and roughly a 160% increase in service based revenue (non-equipment
revenue) for the first quarter ended March 31, 1997.
Preliminary results show that total revenue increased to $1.4M in the
first quarter as compared to $569,000 in the first quarter, 1996. Service
based revenue for the first quarter increased to $1.3M from $500,000 in the
same period one year ago.
The Company also stated it expects to report a loss for the quarter of
$890,000 or 18 cents per share, as compared to $263,300, or 8 cents per share
for the same period in 1996. On a sequential basis, the net loss narrowed by
$150,000, or more than 14%, relative to the three months ended December 31,
1996.
Roy Dimoff, President and CEO, attributed the strong revenue growth to the
Company's aggressive sales and marketing efforts.
"The Company is extremely pleased with the revenue growth, especially our
service based revenue which includes Internet access, Web services and
colocation (client servers located in the RMI data center) revenue," said
Dimoff.
"Industry growth is as strong as ever, especially for our core services;
Internet access and Web services. We are seeing an increasing number of
opportunities for higher bandwidth as the market expands commercial use of the
Internet," he continued.
Dimoff stated that the anticipated net loss is a direct result of
management's strategy to aggressively invest in growth opportunities that are
expected to lead to long-term profitability. He also noted that the Company
will continue to focus its attention on increasing revenue, furthering
expansion of its client base, and achieving positive EBITDA in the second half
of this year.
Also of note during the first quarter, RMI launched a new email delivery
service -- Internet Flash Mail -- in an exclusive arrangement with Dynaflo
Systems, Inc. The new service, targeted at PC users within small and medium-
sized local area networks (LAN), instantly alerts each user that new email has
arrived, thus eliminating the need for users to frequently dial their email
system to check.
Dial-up subscribers increased approximately 110% to 12,340 subscribers at
the end of March, 1997 from 5,870 subscribers a year ago, accounting for
approximately 44% of revenue for the quarter ended March 31, 1997 as opposed
to 55% for the same period in 1996. During the same time period, high speed
line and Web service clients grew from 271 to roughly 790. High speed line
and Web service clients accounted for approximately 40% of revenue for the
quarter ended March 31, 1997 as opposed to 33% for 1996.
On January 23, 1997, RMI increased its revenue stream and subscriber base
by acquiring key assets of Online Network Enterprises, Inc. (O*N*E*),
headquartered in Boulder, Colorado. RMI acquired approximately 732 dial-up
subscribers and 47 high speed line clients, accounting for approximately
$33,000 in monthly revenue.
Headquartered in Denver, Rocky Mountain Internet provides turnkey Internet
solutions, including Internet access, Web development and hosting and
colocation services. RMI recently invested more than $2 million in
improvements to its network including a 1,200-square-foot data center. The
Company's frame relay backbone is the only Colorado-based network utilizing
the industry-leading Cascade switching technology, with broadband B-STDX 9000
switches strategically placed throughout Denver, Boulder and Colorado Springs
to provide full network redundancy. RMI's combination of frame relay
switching and direct T-3 fiber connections to the Internet backbone ensures
flexible network configurations, maximum reliability and high speed
performance.
Some statements contained herein are forward-looking statements. The
accuracy of these statements cannot be guaranteed as they are subject to a
variety of risks including, but not limited to, future economic conditions,
competitive services and pricing, new service development, the delivery of
services under existing contracts and other factors.
SOURCE Rocky Mountain Internet, Inc.
CONTACT: Roy Dimoff, President and CEO or D. Kirk Roberts, CFO, both of
Rocky Mountain Internet, 303-672-0700; or Len Turano of TKO International,
303-850-7896 |
