New Edge Networks Reports Record Sales, Positive Cash Flow; Poised for Strong Growth in Broadband Networking
VANCOUVER, Wash. – (March 22, 2005) – New Edge Networks today announced it has achieved 21 consecutive quarters of revenue growth, closing 2004 with a record $115.5 million in sales of multi-location wide area networks to businesses and carriers.
Privately owned New Edge Networks said its 2004 revenue grew 19.5 percent from $96.6 million in 2003. The company produced $11 million in earnings before interest, taxes, depreciation, and amortization, or EBITDA, a key financial target for new companies. New Edge Networks began operating just weeks before the market downturn in early 2000. It has maintained positive EBITDA since May 2003.
“At a time when overall telecom industry revenue growth is flat or shrinking, New Edge Networks has grown and prospered,” said Dan Moffat, president and CEO of New Edge Networks. “Extraordinary employees and selling partners putting forth extraordinary efforts create extraordinary results. New Edge Networks is well positioned for continued robust growth in 2005.”
Moffat sees three macro strategic trends that will contribute to growth for the company and the telecom industry.
“Computing power continues to get cheaper and smaller. Computing power is being driven deeper into all businesses in the form of business intelligence to achieve competitive advantage. All business intelligence must be networked via Internet Protocol (IP) devices, which trigger demand for broadband networking,” Moffat said. “IP VPN (short for virtual private network) is the next frontier for wide area networking. There is strong fundamental demand for these services.
“This will be the year we leverage what we have built for growth and improving our focus on customer care and products,” Moffat said. “The operating discipline we developed during tough economic times will serve us well as the industry and market improve.”
In January 2005, New Edge Networks raised $9 million in additional equity from existing investors to step-up sales and marketing and expand network service offerings.
Here are other New Edge Networks performance highlights for 2004:
• Expanded its network reach to include more than 9,000 unique telephone company central offices. This extends the company’s DSL broadband access to about 90 percent of U. S. business locations. It is the largest DSL footprint from a single provider.
• Negotiated and expanded distribution agreements with major long-distance carriers, regional bell operating companies, cable, and satellite providers. These companies use New Edge Networks for reach outside their own networks.
• Formed the Retail Broadband Alliance, a forum that makes it easy for businesses to migrate to broadband networks. There are now about 50 member companies in the Retail Broadband Alliance.
• Expanded its direct distribution channel, offering its full retail products portfolio to resellers, value added resellers, and systems integrators.
• Launched a $99 a month per location managed VPN offering.
• Named 28th on Inc. Magazine’s annual ranking of the 500 fastest-growing private businesses in the United States.
In January, New Edge Networks achieved compliance with data security standards of major credit card associations, becoming one of the first facilities-based carriers to do so. Credit card associations are requiring merchants to comply with stringent security standards that govern how cardholder information is processed, stored, and transmitted.
Also in January, the company received Frost & Sullivan’s Telecommunications Services Product of the Year Award for its product suite of managed network services.
About New Edge Networks
New Edge Networks is a single-source national provider of private multi-location broadband networks for business and carrier customers. Through its own network facilities, New Edge Networks uses a wide variety of last-mile broadband access technologies (frame relay, ATM, DSL, cable, and satellite) for building blended networks that reach 100 percent of all U. S. business locations. New Edge Networks’ product suite of managed WAN and VPN services received Frost & Sullivan’s Telecommunications Services 2005 Product of the Year Award. New Edge Networks is listed No. 28 on the 2004 Inc. 500 list of fastest growing companies in America. 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.
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