RAMTelecom Announces Third Quarter 2008 Results

Fri Nov 28, 12:31 PM

OTTAWA, Nov. 28 /CNW/ - RAMTelecom Inc. (TSXV: RTC.V) today reported results from the third quarter ended September 30, 2008. The highlights provided in this press release should be read in conjunction with the Corporation's unaudited interim Financial Statements and Management's Discussion and Analysis for the third quarter of 2008, found on SEDAR at www.sedar.com.

    
    Financial Highlights

    Three Months Ending               Q3 2008        Q3 2007        Change
    -------------------               -------        -------        ------
    Revenues                      $  1,195,740   $  1,262,505            -5%
    Cost of Sales                 $    816,045   $    898,752            -9%
    Gross Margin                  $    379,695   $    363,753   $     15,942
    Gross Margin Percentage(1)             32%            29%            10%
    Net Income (Loss)             $ (1,193,877)  $   (260,233)
    Cash Flow(1)                  $    (26,306)  $    (72,515)

    (1) see Non-GAAP Measures in MD&A

The Corporation's third quarter revenues of $1,195,740 decreased by 5% from $1,262,505 in revenues reported for the second quarter of 2007. Cash flow was negative $26,306, compared to a negative cash flow of $72,515 for the same period last year. The Gross Margin increased by $15,942 or 4% over the same period in 2007. Gross margin percentage of 32% represents an increase of 10%, compared to the prior year. This increase was achieved through higher margin recurring revenue satellite services, secured through long-term customer contracts and Linkstar product sales. The Corporation has reduced the carrying value of its goodwill by 50%, to reflect the current market conditions and the anticipated challenge of raising future capital to pursue growth opportunities, which may affect the Corporation's recurring revenue streams.

"RAMTelecom's third quarter 2008 financial results reflect management's on-going focus to build the Corporation's recurring revenue-based satellite services," stated Ralph Misener, CEO. "We have made positive gains compared to the same period in 2007, even with a marginal decrease in top line revenues. The Corporation improved its gross margin percentage and increased cash flows." Ralph Misener adds, "Our customer base continues to rely heavily on RAMTelecom services, and we have not encountered any significant decrease in recurring revenues in the first part of Q4. The instability of the economy and the extent of its effect on the 2009 oil and gas winter drilling season makes it extremely difficult to forecast new growth in future quarterly results. Key projects scheduled to contribute to fourth quarter revenues have been postponed and may take place in Q1 2009."

About RAMTelecom Inc.

RAMTelecom Inc. (TSXV: RTC.V) is a satellite service provider delivering flexible, scalable solutions for broadband data and voice business communications. Its fixed and mobile satellite-based communication services and value-add solutions are designed for medium and large enterprises in oil and gas, mining, and forestry and government agencies. With complete coverage of the North American market, the Corporation's satellite broadband services help organizations achieve greater operational efficiency by providing continuous real-time communications between central offices and remote locations anywhere in North America.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

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Contacts

R. A. (Ralph) Misener
President and Chief Executive Officer
Tel: (613) 747-1836 Ext. 125
Email: rmisener@ramtelecom.ca

Alison Tullis
CHF Investor Relations
Senior Account Manager
Tel: (416) 868-1079 Ext. 233
Email: alison@chfir.com