DSL.net Reports Q-2, Year-to-Date 2005 Results

HostReview.com
Monday, August 15, 2005; 12:16 PM

DSL.net, Inc. (www.dsl.net), a nationwide provider of broadband communications services to businesses, today reported second-quarter and year-to-date 2005 financial results.

Revenue for the second quarter of 2005 was $14.4 million, as compared to revenue of $17.7 million for the second quarter of 2004. Revenue for the six months ended June 30, 2005, was $29.8 million, as compared to revenue of $35.5 million for 2004.

The Company generated gross margin (defined as revenue less network expense) of $5.3 million for the second quarter of 2005, compared to gross margin of $5.7 million for the second quarter of 2004. Gross margin for the six months ended June 30, 2005, was $10.6 million, compared to gross margin of $11.4 million for 2004.

"Our financial results clearly demonstrate our success in running our business in a cost-efficient manner that has preserved cash and allowed us to pursue strategic and financing opportunities," said Kirby G. "Buddy" Pickle, chief executive officer of DSL.net.

Free cash flow (defined as Adjusted EBITDA minus capital expenditures) for the second quarter of 2005 was positive $0.3 million, a 116% improvement over free cash flow of negative $1.6 million for the second quarter of 2004.

Net loss for the second quarter of 2005 was $3.1 million, representing a 47% improvement over net loss of $5.8 million for the second quarter of 2004. For the six months ended June 30, 2005, net loss was $6.6 million, a 49% improvement over net loss of $12.9 million for the 2004 period.

The Company continues to operate under a "going concern" qualification received from its independent registered public accounting firm in their audit report on the Company's 2004 year-end financial statements, which was filed by the Company with the Securities and Exchange Commission on March 23, 2005, as part of its Annual Report on Form 10-K for the year ended December 31, 2004.