TORONTO – TeraGo ended its third quarter with a loss, despite revenues and EBITDA reaching their highest quarterly levels in the company's history.
For the period ended September 30 2015, the company posted revenue of $15.3 million, up 21.7% from $12.5 million in Q3 2014. TeraGo said that the improvement in revenue was primarily driven by growth in its cloud and data centre services from its acquisition of RackForce, and partially offset by a decline in the network and voice services associated with the loss of a wireless entrant customer.
Net losses of $432,000 were nearly double the year-over-year loss of $225,000. Net loss was negatively impacted by personnel and operational cost realignment initiatives associated with the RackForce acquisition and the optimization of the network and voice services, incremental depreciation/amortization costs linked to the acquired RackForce assets, and higher finance costs related to the amended credit facility in Q1 2015 used to finance the purchase of RackForce.
EBITDA increased 30.1% to $5.3 million for the quarter compared to $4.1 million for the same period in 2014, and the company’s EBITDA margin was 35%.
TeraGo added that cloud and data centre revenue increased 403% compared to the same period in 2014 and represented 27.3% of its total revenue mix.
"With our transformation into Canada's premier enterprise class network, data, voice and cloud services provider now complete, our strong growth is attributable to the success we have had attracting enterprise customers to our full suite of solutions”, said president and CEO Stewart Lyons, in a statement. “We are finally able to showcase our growth potential due to our unique position in the marketplace. Furthermore we continue to focus on launching new cloud products to meet the growing and complex needs of our customers."
