MIDDLETOWN – WiMax service provider Towerstream Corp. posted a narrower loss for 2009 as the company increased sales and reduced expenses.
For the full year, Middletown-based Towerstream posted a net loss of $8.63 million, or 25 cents a share, compared with a loss of $13.38 million, or 39 cents a share, in 2008. Revenue rose 40 percent to $14.9 million, while expenses decreased 7 percent to $22.35 million.
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“I am very pleased with the company’s solid execution throughout the year given our ability to maintain steady recurring revenue growth and improve our churn rate in a tough operating environment,” Towerstream CEO Jeff Thompson said in a statement.
In the three months ended Dec. 31, Towerstream posted a net loss of $1.97 million, or 6 cents a share, compared with a loss of $2.82 million, or 8 cents a share, a year earlier. Revenue rose 26 percent to $4 million.
Fourth-quarter cash flow in its 10 markets improved 25 percent to $2 million, and Chief Financial Officer Joseph Hernon said the company “continued our steady march towards Adjusted Ebitda profitability.”
Towerstream’s average fourth-quarter revenue per user – a key measure of corporate health in the telecommunications businesses – increased 5 percent to $561 compared with the prior quarter. Another indicator, customer churn, was reduced to 1.43 percent from 1.71 percent.
Towerstream also announced last week that it will pay $1.6 million to buy Scottsdale, Ariz.-based Sparkplug Inc.’s consumer contracts and network infrastructure in Chicago, expanding its network there, and Nashville, Tenn., which will become the company’s 11th market.
“We entered the new year with momentum and believe we are well positioned to benefit from the improving economy as we execute our growth strategy both organically and through acquisitions,” Thompson said, adding: “Towerstream will continue to look for value opportunities that can speed our growth and expand our coverage.”
Additional information is available at Towerstream.com.
