MIDDLETOWN – For the three months ended Sept. 30, Towerstream Corp. (Nasdaq: TWER) reported a net loss of $1.75 million or 5 cents per share, a 14-fold increase from the 2006 third quarter’s loss of $121,088.
Towerstream blamed expenses for its sales and network expansion initiatives, plus recurring costs associated with its transition this summer from a private to a public company.
Third-quarter revenue grew 8.2 percent to $1.76 million from the year-ago $1.63 million, as the fixed wireless service provider added customers and increased its average revenue per user. Per-user quarterly revenue averaged $694 for all subscribers and $879 for new subscribers added during the third quarter, Towerstream said.
“We continue to stay on course for building our sales force and anticipate surpassing the 100 sales representative mark before the end of this year,” President and CEO Jeff Thompson said in a statement. “This will give us the ability to begin opening additional markets early in the first quarter of 2008.
“We completed the build out of a 180-seat sales center ahead of schedule, which allowed us to transition to our new facility without any downtime,” he added. “The new training center – an important part of our call center complex – allows us to increase the size of our training classes, getting more reps through training and producing revenue quicker.”
Going forward, the company said, “We believe that net losses will continue, as we make required additions to our sales, engineering and administrative personnel and network in order to increase revenues and subscriber growth.”
But, Thompson added, “Our metrics continue to hold, and we are confident that the capital raised earlier this year will be sufficient to enable us to build out the Top 20 Tier One markets in the United States on schedule.”
Towerstream Corp. (Nasdaq: TWER) is a provider of WiMax fixed wireless broadband services to businesses of all sizes in the Chicago, Miami, Los Angeles, New York, San Francisco, Seattle, Boston and Providence/Newport markets. Additional information is available at www.towerstream.com.
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