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May 21, 2009

RAMTelecom Inc. Announces First Quarter 2009 Results

 

Ottawa, Ontario— RAMTelecom Inc. (TSXV:RTC) today reported results from the first quarter, ended March 31, 2009.  The highlights provided in this press release should be read in conjunction with the Corporation's unaudited interim financial statements and Management Discussion and Analysis for the first quarter of 2009, found on SEDAR at www.sedar.com .

The Corporation’s first quarter revenues of $864,878 decreased by 31% from $1,249,433 in revenues reported for the first quarter of 2008. Satellite services recurring revenue decreased by $47,424 or 6% while one-time product sales revenues decreased $337,131 or 78% compared to results from Q1 2008. Winter oil and gas activity operated at a small fraction of normal levels for Q1 with the majority of customer capital expenditure budgets being frozen. The Corporation reported a negative cash flow of $170,551 compared to a positive cash flow of $669, net of non­cash expenditures, in the same period last year. The overall gross margin percentage decreased by 25%, compared to the prior year.

Financial Highlights

Three Months Ending

Q1 2009

Q1 2008

 Change

Revenues

$     864,878

$  1,249,433

(31%)

Cost of Sales

$     627,670

$    797,119

(21%)

Gross Margin

$     237,208

$    452,314

($215,106)

Gross Margin Percentage*

  27 %

36%

(25 %)

Net Income (Loss)

$  (275,599)

$ (146,658)

(88 %)  
Cash Flow *
 $   (170,551)
$    669
* See Non-GAAP Measures in MD&A          

 

The Corporation’s first quarter revenues of $864,878 decreased by 31% from $1,249,433 in revenues reported for the first quarter of 2008. Satellite services recurring revenue decreased by $47,424 or 6% while one-time product sales revenues decreased $337,131 or 78% compared to results from Q1 2008. Winter oil and gas activity operated at a small fraction of normal levels for Q1 with the majority of customer capital expenditure budgets being frozen. The Corporation reported a negative cash flow of $170,551 compared to a positive cash flow of $669, net of non­cash expenditures, in the same period last year. The overall gross margin percentage decreased by 25%, compared to the prior year.

RAMTelecom CEO, Ralph Misener, commented, “RAMTelecom’s performance is indicative of operating in a depressed economy throughout our market segments. We are putting our efforts into developing non-traditional markets to establish new revenue streams for both broadband and mobile satellite services.”

On April 20, 2009, the Corporation entered into a definitive Share Purchase Agreement with OmniGlobe Networks Inc. to sell all the outstanding shares of its subsidiary, Misener Telecom. The acquisition, scheduled to be completed on May 19, 2009 was extended to close on or before May 29, 2009.

 

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

rmisener@ramtelecom.ca