OTTAWA – Satellite voice and broadband provider RAMTelecom realized a net loss of $1.98 million for 2008, more than half a million more than its net loss at the end of 2007.
Revenues for the year ended December 31, 2008 were $4.38 million, down slightly from $4.42 million in the year prior. The revenue decrease combined with a lower cost of sales saw gross margins increase to $1.37 million, from $1.21 in 2007.
The company recorded a write-down of the value of its goodwill by 50%, or $1.06 million, which it said was due to “the impairment determined from difficulties raising capital under current market conditions”, which it predicted may adversely affect its “recurring revenue streams”.
“The corporation’s operation continued to improve throughout the first three quarters of 2008 in spite of the difficulties faced in raising capital,” said Ralph Misener, president and CEO, in the press release. "However, the sudden down-turn in the economy in October 2008 had a negative impact on the corporation’s Q4 2008 results and this has carried over into Q1 2009.”
The company announced Tuesday that it has received majority shareholder approval to proceed with the sale of its operating subsidiary, R.A. Misener Telecom Corporation, to OmniGlobe Networks for $2.40 million. The acquisition is expected to be completed in May, 2009.
“The decision to act upon the opportunity to consider selling the operating asset is felt to be the most sensible approach to protect the shareholder value in a tough market environment," Misener continued.
Misener Telecom is the operating asset of RAMTelecom.
