MIDDLETOWN, R.I., Nov. 4, 2010 (GLOBE NEWSWIRE) -- Towerstream (Nasdaq:TWER), a leading 4G service provider delivering high-speed wireless Internet access to businesses in 11 major metropolitan areas in the U.S., announced results for the third quarter ended September 30, 2010.
Third Quarter Operating Highlights
- Revenues increased 34% to $5.1 million during the third quarter 2010 compared to the same period last year and increased 4% compared to the second quarter 2010
- Gross margin remained strong at 75% during the third quarter 2010
- Adjusted Market EBITDA profitability increased to $2.7 million in the third quarter 2010 as compared to $2.4 million for the second quarter 2010 and $1.6 million for the third quarter 2009
- Adjusted EBITDA profitability totaled $0.4 million for the third quarter 2010 compared to $0.05 million for the second quarter 2010 and an Adjusted EBITDA loss of $0.5 million for the third quarter 2009
- Customer churn for the third quarter 2010 was 1.60% compared to 1.15% during the second quarter 2010 and 1.71% during the third quarter 2009
- Chicago market revenues for the third quarter 2010 increased 15% compared to the second quarter 2010 and almost doubled compared to the third quarter 2009, reflecting completion of the Sparkplug acquisition in the second quarter of 2010
Management Comments"We are pleased with the mix of organic and post acquisition growth during the quarter," stated Jeff Thompson, Chief Executive Officer. "Our Los Angeles market reported 11% sequential organic revenue growth over the second quarter of 2010 and 69% revenue growth compared to the third quarter of 2009. Our Chicago market posted a 15% sequential revenue increase as customer interest surged following completion of the Sparkplug acquisition in the second quarter." "Our Smartphone Backhaul program continues to progress with the initiation of pilot trials with potential strategic revenue partners," added Mr. Thompson. "We believe that carriers will seek multiple solutions to address network capacity issues associated with exploding demand from smartphones, tablets, and other devices."