NetNation reports record revenues in second quarter 2003
Vancouver, BC August 14, 2003 -
NetNation Communications, Inc. (Nasdaq: NNCI), a global web hosting provider and domain name registrar, announced today financial results for its second quarter ended June 30, 2003. Revenues for the quarter were US$1,924,951, compared to revenues of US$1,740,954 for the same period in 2002 - an increase of US$183,997 or approximately 11 per cent. Revenues for the first half of 2003 were US$3,737,993, compared to revenues of US$3,427,385 for the same period of 2002 - an increase of US$310,608 or approximately nine per cent.
The second quarter of 2003 marked the tenth consecutive profitable quarter for the Company. Net earnings for the quarter ended June 30, 2003 were US$59,837 or approximately US$0.01 per share, compared to net earnings of US$151,707 or approximately US$0.02 per share for the same period in 2002. Net earnings for the first half of 2003 were US$265,407 or approximately US$0.04 per share, compared to net earnings of US$366,028 or approximately US$0.06 per share for the same period in 2002.
NetNation's cash balance continued to increase. The cash balance increased to US$3,804,746 from US$3,666,185 at the end of the previous quarter and US$3,334,561 at the end of last year - increases of US$138,561 and US$470,185 respectively. This increase in cash was generated entirely through Company operations and not through external financing.
As previously announced on June 13, 2003, the Company's shareholders approved
a one for two and one half (1:2.5) reverse stock split of the Company's outstanding
common stock. All per share amounts, outstanding shares, and share capital amounts
have been retroactively restated in the financial statements and financial information
for all periods presented to reflect the reverse stock split.
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 has extended its products to offer 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. NetNation recently
announced plans to merge with Hostway Corporation.
NetNation's wholly owned subsidiary, DomainPeople, Inc. (http://www.domainpeople.com), was the eighth ICANN-accredited domain name registrar in the world 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 August 14, 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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