MIDDLETOWN, R.I., August 14, 2007 - Towerstream (NASDAQ: TWER.), a leading fixed wireless service provider today announced that for the second quarter the Company reported total revenues of $1,632,061 and a net loss of $2,388,587 or $0.09 per share.
Towerstream Operational Highlights
- Increased second quarter 2007 revenue over first quarter 2007 revenue by 3.25%
- Increased average revenue per user (ARPU) to $669 by 1.8%
- Increased ARPU for new subscribers within the quarter to $984, by 13.8%
- Average revenue per trained sales agent of $1,131 per month increased by 3.3%
- Expanded call center sales force to 44 from 28
- Hired sales industry veteran Mel Yarbrough as Vice President of Sales to build sales team to 400 nation wide
Second Quarter 2007 Financial Results
Revenue for the quarter ended June 30, 2007 was $1,632,061 compared to $1,585,841 for the second quarter ended June 30, 2006. The increase in revenue was due primarily to increases in ARPU and the addition of new customers.
Gross margin decreased to 66.0% for the second quarter 2007 compared with 73.2% for the second quarter 2006. The decrease in the gross margin was primarily attributed to increases in recurring expenses associated with our network and capacity expansion efforts.
Selling, general and administrative expenses (SG&A) totaled $2.8 million for the second quarter of 2007 compared with $0.8 million for second quarter 2006. The increase was due primarily to additions in sales, support and administrative personnel, as well as, fees and expenses relating to the company’s recent financings and equity offerings which raised gross proceeds of approximately $55 million.
Towerstream reported a net loss of $2,388,587 million or $0.09 per share, compared to a net loss of $130,934 or $0.01 per share for the second quarter 2006.
As of June 30, 2007 Towerstream had cash and cash equivalents totaling $47.6 million, long-term debt of $3.5 million and shareholder equity of $48.6 million.
“During the third quarter and for the balance of 2007, we plan to continue to expand our sales force and expect to reach or exceed our goal of 100 call center sales representatives by year’s end. Additionally we expect to continue to expand our network’s footprint in existing and new markets. With the completion of our fund raising efforts in June, Towerstream is focused on making the necessary investments in people and infrastructure in order to prepare the company for significant sales growth in future quarters,” said Jeff Thompson, President and Chief Executive Officer.
Conference Call and Webcast
President and Chief Executive Officer Jeff Thompson and Chief Financial Officer George Kilguss will hold a conference call with the financial community at 5:00pm Eastern today to review the Company’s financial results and provide an update on business developments.
Interested parties may participate in the conference by dialing 866-800-8649 (or 617-614-2703 for international callers). When prompted ask for the “Towerstream Investor Conference Call.” A telephonic replay of the conference may be accessed approximately two hours after the call through August 28th by dialing 888-286-8010 (or 617-801-8888 for international callers) using pass code 40891717.
The conference call will be webcast simultaneously on the Towerstream website at www.towerstream.com under Investors Event Calendar. The webcast will be archived for 12 months.