November 17, 2007 – (HOSTSEARCH.COM) – Virginia-based web hosting provider Sitestar (http://www.sitestar.com) has announced third quarter (ending September 30, 2007) financial results, it was reported yesterday. The company has achieved consecutive profitable quarters, the latest aided in part by negotiations with USA Telephone for the acquisition of nearly 40,000 narrowband subscribers marketed under the Nationwide, InReach and DFW Internet brands.
"As we continue to grow Sitestar, our momentum begets a beneficial, self-perpetuating cycle. With greater cash flow, we can close not only more acquisitions, but also larger deals," explained Sitestar’s CEO, Mr. Frank R. Erhartic, Jr., for. "Plus, we can leverage existing infrastructure to support newly added customers at little-to-no incremental operational cost and negotiate more advantageous terms with our suppliers. Dial-up acquisitions will drive our core growth in 2008. However, we expect our web hosting and soon-to-be launched Voice-over-Internet Protocol (VoIP) initiatives to begin to have an increasingly positive impact on our revenue stream going forward."
Revenue for period January 1, 2007 to September 30, 2007 increased by $164,163 (3.8%) on the same period 2006. The increase in Internet sales is attributed to the integration and optimization of operating expenses related to the asset acquisitions of Magnolia Internet Services, OW Holding (One West) and AlaNet. Combined, these acquisitions, for the nine months ended September 30, 2007, yielded approximately $1,024,000 in additional net revenues.
