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Incentra Reports Q3

BOULDER, Colo. -- Incentra Solutions, Inc.
(BULLETIN BOARD: ICNS) , a provider of complete IT and storage management solutions to enterprises and managed service providers in North America and Europe, today announced results for its third quarter and nine months ended September 30, 2007. Revenue in this year's third quarter increased 126 percent year over year and included organic growth in Product revenue of 64 percent and Services revenue of 54 percent, as well as revenue gained from two acquisitions that closed during the quarter. Net loss from continuing operations declined significantly in both 2007 periods and adjusted EBITDA in the third quarter of this year was positive.

Total revenue in the 2007 third quarter rose 126 percent to $36.4 million, from $16.1 million in the 2006 third quarter. Services revenue in this year's third quarter increased 68 percent to $6.1 million from $3.6 million in the prior year period, and Product revenue grew 143 percent to $30.3 million, up from $12.5 million in the 2006 third quarter. Results from continuing operations for all periods exclude the operating results of the Company's former Front Porch Digital Broadcast and Media business, which was sold in July 2006.

For the first nine months of 2007, total revenue increased 117 percent to
$92.1 million, from $42.5 million in the year-earlier period. Services revenue for this year's first nine months increased 63 percent to $16.0 million and total Product revenues grew 133 percent to $76.2 million. This compares to total Services revenue of $9.8 million and Product revenue of
$32.7 million in the first nine months of 2006.

Chairman and CEO Thomas P. Sweeney said that Incentra's results for the 2007 third quarter were indicative of the significant progress the Company has made in improving productivity and operating efficiencies and aggressively executing its strategy of increasing sales of its higher margin Services and upper-end IT products through its growing solutions sales organization.

"We had a banner 2007 third quarter even though the summer quarter in the IT industry is often the weakest of the year for both revenue and profit performance," Sweeney added. "Incentra has reached the size and scale that we can now concentrate on operating the business to continually generate increasing positive adjusted EBITDA and profitability and to organically grow Services and Product revenue at above market rates."

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