On the heels of announcing a $5m private placement Shift announces our numbers for the Q.
Shift Announces Strong Revenue and Margin Growth in First Quarter 2006
CALGARY, May 30, 2006; Shift Networks Inc. (TSX-V:SHF, Shift, or the Company) a leading
provider of hosted IP communications services for small to medium sized businesses today
reported strong revenue growth in its first quarter, 2006 financial results.
Revenues for the three-month period ended March 31, 2006 grew over 300% to C$495,460, compared to revenues of $158,371 in the first quarter of 2005. Contracted quarterly recurring revenue for ShiftVoice service grew over 1000% to $154,552 Q1 2006 from $15,104 Q1 2005. Operating margin on contracted recurring VoIP revenue increased to 54% versus previous quarters at 47%. The Company anticipates continued margin improvement as the Shift customer base continues to scale. Sales continued to increase over the last 3 months as a result of Shift’s continued investment into distribution and sales capacity and growing customer interest and adoption. Management expects growth to continue to accelerate as additional direct sales personnel, indirect distribution partners, and new markets such as Vancouver continue to gain traction.
"Shift’s growth is a function of investment in our sales channels, number of markets, and strength of service offering,” stated Shift President and CEO, Trent Johnsen. "Shift is seeing increasing client opportunities with the addition of Vancouver as the third major market from companies with multiple locations. We are also experiencing pent-up demand for service in Toronto and have work in progress to offer service there.”
Sales and marketing expenses for the quarter increased in line with sales growth. The Company estimates an approximate six month cycle from addition of sales personnel to consistent subscriber revenue loading, comprised of 60 to 90 days training and lead development for new sales reps and dealers, followed by an average 60 to 90 day sales cycle.
As a result of Shift’s increased investments in sales and distribution personnel through the fall of 2005, new subscriber loads increased from 365 in the fourth quarter, 2005, to over one thousand new subscribers in the first quarter of 2006. Over 40% of subscriber line activations were the result of independent Shift dealer activity. During the first quarter the Company completed a fully subscribed $2,000,000 brokered private placement ("Private Placement").
The Corporation issued 20,000,000 Units at $0.10 per Unit. Each Unit consisted of one common share and one share purchase warrant. Each share purchase warrant is exercisable into one common share at a price of $0.14 until January 12, 2008. Proceeds are being utilized to fund acceleration of the Company's sales and marketing initiatives in Calgary, Edmonton and Vancouver as well as for inventory, provisioning, installation and general working capital. Additional information relating to the Company, as well as the complete First Quarter, 2006,
Financial Statements can also be found on SEDAR at www.sedar.com.
Shift Networks is a leader in next generation IP communications services for small to mediumsized businesses. Shift Networks trades on the TSX Venture Exchange under the symbol "SHF". Please visit our website at www.shiftnetworks.com.
For information please contact:
Press & Media Shift Networks Inc.
Christian Darbyshire Trent Johnsen
(416) 419-9953 President and CEO
[email protected] (403) 355-2703
Technorati
Del.icio.us
Slashdot
Digg
twitter
DAMAKA LAUNCHES ITS SIP P2P OPERATOR AND SERVICE PROVIDER VERSION OF ITS PERSONAL SOFTSWITCH
damaka Launches Operator and Service Provider Version of Its Peer-to-Peer Personal Softswitch(TM)
Monday June 12, 9:00 am ET
RICHARDSON, Texas--(BUSINESS WIRE)--June 12, 2006--damaka, a leading provider of real time peer-to-peer multimedia collaboration and communication software solutions, announced the release of "damaka powered" Partner Operator version of it's Personal Softswitch(TM) that enables Operators and Service providers to offer unique high value, easy to use voice, video and data services to their customers with the highest flexibility and lowest cost of ownership compared to any solution available today.
ADVERTISEMENT
"damaka now empowers Operators, VoIP Providers and ISPs with branded solution to leapfrog their competition by providing next generation services with secure, high quality Video and Voice (PC-to-PSTN/Mobile and PC-to-PC) communication," said Siva Ravikumar, Founder and CEO of damaka. "damaka's cutting-edge peer-to-peer technology based on SIP standards allows our customers to take advantage of its service enabling and highly scalable solution to increase revenue and reduce cost significantly."
damaka has announced their Operator launch with Mortel Telecom (www.mortel.com), a next generation Turkey based VoIP Provider focusing on Turkey and International markets. Mortel has implemented the complete "damaka powered" solution to deliver creative peer-to-peer services. damaka is currently working with numerous other operators and VoIP providers to enable them to launch their own peer-to-peer networks and be in the forefront of offering tailored communication and collaboration solutions to their customers.
"We require our partners' solutions to seamlessly integrate into our infrastructure so that we can maximize our capabilities, quickly deliver superior quality, and offer advanced services that touch people's lives every day. damaka's technology is changing the way we deliver services," said Vahit Aykut, CEO of Mortel. "The secure peer-to-peer model helps Mortel to scale with the most cost effective infrastructure possible today and this is a key element to our overall growth plan."
damaka has also recently developed and released the best-in-class peer-to-peer video (H.263/H.264) as the cornerstone of its video offering.
For information on how to have your own peer-to-peer "damaka powered" network contact: [email protected]
About damaka, Inc.
damaka (www.damaka.com) is a technology pioneer in distributed softswitching for multimedia communication and collaboration services. damaka offers its state-of-the-art software solutions to Operators, Enterprises and Consumers. damaka platform is based on industry standards and uses patent pending technology, which provides a very secure peer-to-peer environment for Internet users worldwide.
Contact:
damaka, Richardson
Sylvia, 972-979-6464
[email protected]
www.damaka.com