TORONTO – Despite record-high revenue and EBITDA, TeraGo Networks ended 2010 with a net loss of $5.9 million, slightly higher than the $5.8 million net loss it reported in 2009.
The broadband service provider explained the loss as mainly due to an increase in depreciation of $1.5 million partially offset by improved operating results. Total revenue for the year ended December 31, 2010 increased 9% to $37.8 million, compared to $34.8 million for the same period in 2009, while EBITDA climbed to $6.5 million, up from $5 million last year.
“One of our main objectives for 2010 was to efficiently convert our revenue growth into accelerated EBITDA performance", said president and CEO Bryan Boyd, in a statement. "With record revenue and our strong cost management efforts we were able to accomplish this and set an EBITDA record. Our strategy is working well as demonstrated by the strong results in all our key financial and operational metrics. We have the strategic, operational and financial strength to extend this momentum through 2011 and beyond.”
Canaccord Genuity analyst Dvai Ghose said in a research note that the he was “impressed” with TeraGo’s fourth quarter results, and predicted that that the company would generate 12% growth and a 26.5% EBITDA margin in 2011. He also noted that TeraGo “looks set to generate positive FCF by the end of 2011 and positive net income in 2012”, and continued to recommend the company’s stock.
Click here for more on the company’s 2010 financial results.
