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iWeb revenues increase by 26% in 2010 - The iWeb Group presents its fourth quarter and fiscal 2010 financial results.

^{Published on 2010-12-17 15:40:39 - Market Wire}
 

MONTREAL, Dec. 17 /CNW Telbec/ - iWeb (TSX-V: IWB), a global provider of Internet hosting services and IT infrastructure today released its financial results for the year ended September 30, 2010. The complete financial statements and Management's discussion and analysis are available on [ http://investors.iweb.com ] and [ http://www.sedar.com ][ . ]

Fourth-quarter highlights:

• Revenues of to US$7.7M for the quarter, compared to US$6.3M in 2009.
• EBITDA reaches US$1.8M (24% of revenues), nearly double the US$1.0M (16% of revenues) reported for Q4 2009
• Net income of $56 000 for the quarter

2010 financial and operational highlights:

• 26% revenues increase, from US$23.1M in 2009 to US$29M in 2010
• EBITDA US$7.8M (27% of revenue)
• Total assets reach US$40M
• Small net loss of US $28 000 ($0.010 per share)
• Capacity increased to 34,000 dedicated servers with opening of a fourth data center
• Launch of "Smart Servers^TM" in October; powered by proprietary virtualization technology
• Eric Chouinard, CEO, named to prestigious "Canada's Top 40 Under 40"

"The fourth quarter allowed us to finish the year on a high note, with sales contributing to record revenues of US$29 million for 2010," said Eric Chouinard, President of iWeb. "With the fully automated data center now online, the availability of the "Smart Layer^TM" and the October launch of "Smart Servers^TM", we can now adjust our service offer on demand - which will allow us to continue delivering sustainable growth in the years to come. This platform is iWeb's most important technological innovation to date, and innovation has always been the engine of iWeb's growth."

"Throughout the year, we have been able to continue delivering positive results, despite the uncertain economic environment. The pace of recovery has been somewhat slower than we would have liked," shared Martin Leclair, President, Products and Technologies. "Having said that, we firmly believe that our ongoing investments in innovation and the priority we give to the needs of our customers will help us achieve sustainable growth in the coming years. Our success would not have been possible without the daily dedication of our employees and I thank them for another exceptional year."

Financial review
Unless otherwise indicated, all amounts are in US dollars (US). Since September 30, 2010, the Company's financial results are presented in US dollars.

Revenues for the year ended September 30, 2010 increased to $29 million from $23 million in 2009, a 26% increase over twelve months.
EBITDA was $7.8 million or 26.8% of revenues, up from $5.5 million (24.0% of revenues) in 2009.
Cash flow generated from operations was $5.4 million for the year, similar to the $5.2 million for the prior year.
For fiscal 2010, the acquisition of tangible and intangible assets totalled $9.3 million, compared to $7.7 million in 2009. The amounts invested were used for the construction of the fourth data center, iWeb-NE, the addition of servers throughout the year, an additional generator for the iWeb-CO data center, as well as the development costs associated with internal systems to enable full automation of the new iWeb-NE center.

Selected financial data (in thousands of US dollars, except per share amounts)
Fiscal year ended September 30

* Refer to the "Selected financial information" section of Management's discussion and analysis (MD&A) for a description of Adjusted EBITDA.

About iWeb Group Inc. ([ iWeb.com ])

iWeb provides Internet hosting services and IT infrastructure to nearly 24,000 customers in 150 countries. With its four data centers, iWeb's total capacity has reached 34,000 dedicated servers, over 1,100 co-location cabinets and 77 Gigabits per second (Gbps) of Internet connectivity, from 9 separate providers.

One of Canada's 100 fastest growing companies according to PROFIT Magazine, iWeb now generates more than 60% of its revenues from abroad. Founded in 1996 in Montreal, iWeb shares are traded on the TSX Venture Exchange under the symbol "IWB".

Forward-looking statements
This release contains forward-looking statements relate to future events or iWeb's future economic performance and reflect assumptions and current expectations of management. Certain unknown factors may affect the events, financial performance and operating results. iWeb is not obligated to update or revise publicly any forward-looking statements result of new information, future events or other factors, unless applicable law requires it. The TSX Venture Exchange assumes no responsibility for the adequacy or accuracy of this release.