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News Releases
New Edge Networks Posts Record Revenue for Third Quarter; Sees Growing Demand for Business Data Communications
VANCOUVER, Wash., - (Oct. 29, 2003) – New Edge Networks posted record third quarter 2003 revenue driven by strong sales of data communications networks to businesses and carriers with sites located in multiple regions of the country.
Privately-owned New Edge Networks said its third quarter 2003 revenue was a record $23.8 million, up 62.1 percent from $14.7 million in the same period a year ago. Third quarter 2003 revenue was up 7.9 percent over the previous three-month period. Through the first nine months of 2003, revenue was $66.5 million.
New Edge Networks’ earnings before interest, taxes, depreciation and amortization (EBITDA) swung to a positive $875,000 for the third quarter of 2003 from a loss of $5.1 million in the same period last year. The company’s EBITDA is up 54.7 percent from $565,000 in the second quarter 2003 when the company hit black ink for the first time. New Edge Networks was formed in 1999.
“Demand for business data communications is growing exponentially as businesses are migrating from stand-alone PC solutions to broadband client/server local area network solutions and now to network-based server access via wide area networks,” said Dan Moffat, president and CEO of New Edge Networks.
“New Edge Networks is uniquely positioned as a single-source provider for last mile business and carrier broadband services to virtually every address in the United States,” Moffat said. “We can offer business customers and other carriers the widest range of broadband access products and services at speeds at or below T-1 (1.5 megabits a second). This includes managed services using business-class xDSL, T-1, frame relay, ATM, VPN, and frame relay over DSL technologies.
“These choices allow customers that are still using dial-up solutions to step up to last-mile broadband access at price points well below T-1,” Moffat said. “Existing customers with T-1 connections and multi-site networks are stepping down to less expensive alternatives that meet their bandwidth and quality-of-service requirements. Until recently, business customers had few choices for broadband access below an expensive T-1 or frame relay line from the local telephone company.
“We have been successful because we are offering a wide selection of access choices,” Moffat said. “We are helping our customers eliminate the pain and complexity of managing multiple carrier relationships, allowing them to focus on growing their businesses.
“Customers want the widest network reach and they want to use telecom services for their business. They don’t want to run a telecom company,” Moffat said. “We call this broadband glue.”
About 95 percent of New Edge Networks’ total revenue is monthly recurring and protected by multi-year service agreements.
During the past three months, New Edge Networks also has been busy implementing new agreements enabling the company and other carriers to sell into each others’ footprints. New Edge Networks has new carrier agreements with Verizon (NYSE: VZ), MCI Wholesale Services (OTC: WCOEQ, MCWEQ), Covad (OTC: COVD) and DSL.Net (NASDAQ: DSLN). New Edge Networks is negotiating new agreements with other broadband access carriers.
New Edge Networks also has been aggressively expanding its distribution channels by adding new resellers, sales agents, and referral partners. The company added several key sales management and customer care positions to support its new channel partners.
About New Edge Networks
New Edge Networks is a single-source national provider of secure multi-site managed data networks and dedicated Internet access for businesses and communications carriers. New Edge Networks seamlessly integrates a wide variety of last-mile broadband access services available through multiple carriers, technologies, and geographic regions worldwide. Its customers include telecom carriers, small to midsize businesses, large corporations, and their telecommuters anywhere. New Edge Networks owns a nationwide multi-services network with more than 850 carrier-class switches and Internet routers. It has one of the country’s largest coverage footprints with a strong presence in small and midsize markets. The company’s Web site is www.newedgenetworks.com. Telephone: 1-360-693-9009.
Contact:
Sal Cinquegrani
(360) 906-9723
ATTN: New Edge Networks news releases contain information that is accurate as of the date they are issued. Information contained in past news releases may become out of date and the company does not assume responsibility for updating information contained in past news releases.