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 Press Releases
April 16, 2009RAMTelecom Announces FY2008 Financial Results
Ottawa, Ontario— RAMTelecom Inc. (TSXV:RTC) today announced the filing of its financial results for the year ended December 31, 2008. The highlights provided in this press release should be read in conjunction with the Corporation’s audited financial statements and Management Discussion and Analysis for the year ended December 31, 2008 found on SEDAR at www.sedar.com.
Financial Highlights
(1) See Non-GAAP Measures in MD&A
Highlights Revenues for the Corporation for the year ended December 31, 2008 were $4,380,392 compared to $4,420,210 for the year ended December 31, 2008. Cost of sales declined to $3,011,615 in 2008 from $3,212,345 in 2007. With slightly decreased revenue and lower cost of sales, gross margin increased to $1,368,777 in 2008 from $1,207,865 in 2007. Expenses for the period ended December 31, 2008 increased to $3,353,669 compared to $2,602,349 for the same period ended December 31, 2007. The Corporation recorded a write-down of the value of its goodwill by 50%, or $1,062,349, due to the impairment determined from difficulties raising capital under current market conditions, which may adversely affect the Corporation’s recurring revenue streams. A net loss of $1,984,892 was realized for the year ended December 31, 2008 as compared to a net loss of $1,394,484 for the comparable period in 2007. Cash flow, excluding non-cash expenditures, was negative $430,350 for the year ended December 31, 2008 compared to a negative cash flow, excluding non-cash expenditures, of $651,772 for the same period in 2007. On December 16, 2008, the Corporation publicly disclosed entering into a Letter of Intent to sell its operating asset, R.A. Misener Telecom Corporation to Omniglobe Networks Inc for $2,400,000. A shareholder’s meeting will be held on April 17, 2009 to vote on the sale of the asset with the closing scheduled to take place in Q2, 2009. Ralph Misener, President and CEO, noted that “the Corporation’s operation continued to improve throughout the first 3 quarters of 2008 in spite of the difficulties faced in raising capital. However, the sudden down-turn in the economy in October 2008 had a negative impact on the Corporation’s Q4 2008 results and this has carried over into Q1 2009. The decision to act upon the opportunity to consider selling the operating asset is felt to be the most sensible approach to protect the shareholder value in a tough market environment.”
About RAMTelecom RAMTelecom Inc. 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. www.ramtelecom.ca. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. For more information contact: R. A. (Ralph) Misener President and Chief Executive Officer (613) 747-1836 Ext. 125 |
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