August 25, 2008 – (HOSTSEARCH.COM) – Web host Sitestar (http://www.sitestar.com) has announced its second quarter earnings, it was reported recently. According to the company, the results put it “on a trajectory to complete its first fiscal year” by generating over ten million dollars in revenue.
The quarter saw the company acquire customers from N2 the Net and AdaNet and purchase broadband customers from USA Telephone/Nationwide. The company also “diversified its service portfolio” by “absorbing” dial-up provider Dial Assurance.
"Having fully completed the complex integration and network optimization of last year's USA Telephone/Nationwide narrowband customer acquisition, our second quarter results are the first indicative realization of the significant earnings potential from this game-changing transaction," explained Sitestar’s CEO, Frank R. Erhartic, Jr. "More importantly, we have successfully increased our revenue as reflected in our significant growth in total revenue, EBITDA and net income while not commensurately decreasing our cost of revenue as a percentage of sales. We believe these to be key traits of a healthy company that delivers value to its shareholders."
"We are trending toward completing our first year in which we expect to achieve over $10,000,000 in sales,” added Mr. Erhartic. “To propel us toward that benchmark, we are focusing our business development efforts on core acquisition targets that consist of ISP customer bases that have a strong narrowband makeup. In addition, we will expand our fledgling wholesale dial-up business which we expect to become a feeder for ISP acquisitions. Lastly, we continue to analyze the web hosting and VoIP (voice-over-internet-protocol) markets to identify synergistic business opportunities. With strong financial results and a robust opportunity pipeline, we are highly optimistic about Sitestar's future."
Highlights for the period included a revenue increase of 71.0% for the three months ending June 30, 2008 over the same period in 2007. Net income for the same period increased $307,359 on the same periods. Total revenue for the six months ending June 30, 2008 was $5,159,244, an increase of $2,190,530 or 73.8% from $2,968,714 for the same period in 2007.
With headquarters in Lynchburg, Virginia, USA, Sitestar offers Internet access, ISP alongside web hosting. |
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