Towerstream grows top-line, records loss

MIDDLETOWN – Despite first-quarter revenue growth of 40.3 percent to $6 million, Towerstream Corp. saw a net loss of $1.5 million, unchanged from the 2010 first quarter, or 4 cents per common share.
Company CEO Jeff Thompson, in a release produced Tuesday, attributed the topline rise to “organic growth and a disciplined acquisition strategy,” noting that Towerstream continues “to achieve significant progress building what we believe is the largest and fastest Wi-Fi offload network in Manhattan.” (The company has high-speed, wireless Internet access operations in 11 U.S. metro areas, including Providence/Newport.)
The company did record $1.3 million in positive cash flow by operations for the period, which reversed the $558,000 that it burned in the first quarter of 2010.
At the same time as it reported its first-quarter earnings, the company announced that it had reached a definitive agreement to acquire undisclosed “business assets” from One Velocity Inc. in Las Vegas and Reno, Nev. Details of the transaction were not revealed, although the company did increase its revenue guidance for the second quarter by $300,000.