NetNation Reports Record Quarterly Revenues and Continued Profitability and Positive Cash Flow for First Quarter 2003
Vancouver, BC May 13, 2003 -
NetNation Communications, Inc. (Nasdaq: NNCI), a global web host and domain name registrar, announced today financial results for its first quarter ended March 31, 2003. Revenues for the quarter were US$1,813,042, compared to revenues of US$1,686,431 for the same quarter of 2002 - an increase of US$126,611 or approximately eight per cent.
The first quarter 2003 marked the ninth consecutive profitable quarter for the Company and the eighth consecutive quarter of positive cash flow. Net earnings for the quarter were US$205,570 or approximately US$0.01 per share, compared to net earnings of US$214,321 or approximately US$0.01 per share for the same quarter in 2002.
NetNation's cash balance continued to increase. The cash balance increased
to US$3,666,185 from US$3,334,561 at the end of the previous quarter - an increase
of US$331,624 or approximately ten per cent. This increase in cash was generated
entirely through Company operations and not through external financing.
About NetNation Communications, Inc.
NetNation Communications, Inc. (http://www.netnation.com) is a pioneer in web
hosting and domain name registration. With more than six years in operation,
the Company offers enhanced-dedicated servers, co-location, shared hosting and
managed services to clients worldwide. NetNation is recognized by industry evaluators
for its excellent customer service and support, as reflected by its frequent
top web host rankings worldwide. The Company was recently ranked the fourth
fastest growing company in British Columbia by Business in Vancouver magazine,
based on percentage revenue growth from 1997 to 2001.
DomainPeople, Inc. (http://www.domainpeople.com), a wholly-owned subsidiary of NetNation Communications, Inc., was the eighth ICANN-accredited domain name registrar and offers registration for the most popular domain extensions - notably .com, .net, .org, .info, .biz, .name, .ca and .us. DomainPeople is a founding member of Afilias Limited, the registry selected to operate .info.
This release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the U.S. Private Securities Litigation Reform Act
of 1995. These statements are based on management's current expectations and
beliefs and are subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the forward-looking
statements. These risks and uncertainties include the following: (1) technological
changes or changes in the competitive environment adversely affecting the service-packages,
market share, revenues or margins of the combined business; (2) changes in general
economic, financial or business conditions adversely affecting the combined
business or the markets in which it operates and adversely affecting future
revenues; (3) availability of financial resources to carry out plans; and (4)
authorization from third parties to carry out plans. The matters discussed in
this news release also involved risks and uncertainties described from time
to time in NetNation's filings with the Securities and Exchange Commission,
including the most recent Form 10-Q filed on May 13, 2003. NetNation assumes
no obligation to update any forward-looking information contained in this news
NetNation is a registered trademark of NetNation Communications, Inc. and DomainPeople is a trademark of DomainPeople, Inc. All other products and company names are the trademarks or registered trademarks of their respective owners.
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