RUSHVILLE, Ind., Oct. 27, 2009 (GLOBE NEWSWIRE) -- Omnicity Corp. (OTCBB:OMCY), the Midwest's largest fixed Wireless Internet Service Provider (WISP), today announced its financial results for the fourth quarter 2009.
Highlights include:
-- Q4 09 revenues increased 89% to $611,000 compared to Q4 08
revenues of $322,000
-- Q4 09 revenues increased 44% compared to Q3 09 revenue of
$425,000 (Q3 09 -- 46% increase over Q2 09)
-- Successfully expanded its subscriber base to 5,200 subscribers
-- The Company expects revenues in excess of $650,000 for Q1 2010
2009 Fourth Quarter Results:
Omnicity's revenues for the year ended July 31, 2009 increased by $655,000 to $1,689,000 (2008 -- $1,034,000), an increase of 63%. More importantly, revenue for Q4 2009 increased by $288,000 to $611,000 (Q3 2008 -- $322,000), an increase of 89%. Additionally, Q4 2009 revenues increased by $186,000 to $611,000 (Q3 2009 -- $425,000), an increase of 44%. This is after a 46% increase Q3 2009 compared to Q2 2009. These significant increases reflect an increase in recurring service revenue from our four asset acquisitions; ND Wave, ForePoint Networks, North Central Communications and Cue Connex. The number of subscribers increased from 1,800 to 5,200 by virtue of these acquisitions. The Company mainly receives revenue from monthly service and modem rental fees collected from its subscribers. The Company also receives web hosting fees, installation fees, fiber construction projects fees and late fees.
Greg Jarman, CEO of Omnicity, stated, "We are very pleased with our financial results and growth during the fourth quarter. Our goal is to maintain double digit growth each and every quarter during fiscal 2010. This certainly paves the way for our growth strategy and we expect to be operationally cash flow positive by the end of January 31, 2010 (Q2 2010). We have 7 acquisitions in various stages of closure including the recently announced Midwest WISP Letter of Intent. We expect to close on each of these acquisitions by the end of Q2 2010. The financial impact of these acquisitions should be that Omnicity will be cash flow positive, which is a major milestone and well ahead of our original projections when we went public 8 months ago. We expect these acquisitions, along with stepped up organic growth, will positively impact our Company's valuation in the public market. Notably, we are also in contention to win a $16.2 million bid to build fiber optic services for rural hospitals across the State of Indiana, being an applicant for $31 million in such projects overall."
About Omnicity:
Our vision is to be the first broadband service provider to expand its network across rural America.
Omnicity Corp. is a public company based in Indiana providing broadband access, including advanced services of voice, video and data, in un-served and underserved small and rural markets and is planning to be the premier consolidator of rural market broadband nationwide. Omnicity's strategy is to provide a total broadband solution and continue rapid growth through acquisitions, organic growth and continue to partner with Rural Electric Membership Co-ops and Rural Telephone Companies. Omnicity has an experienced broadband operations team with extensive wireless broadband/ISP expertise as well as the expertise to consolidate large numbers of businesses through its roll-up strategy.
Forward-looking statements, made pursuant to safe harbor provisions of the PSLR Act of 1995, inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for changes after the date of this release.