CommerceTel Expands Customer Base, Projects Revenue Growth
CommerceTel expects revenues for the third quarter, which ends Sept. 30, 2011, to exceed $800,000 resulting in at least a 40% increase over second quarter 2011. Additionally, the proprietary mobile marketing technology company projects fourth quarter revenues to exceed $1 million.
“This has been a busy year for CommerceTel,” said Dennis Becker, CEO. “Completing three acquisitions, ramping to a customer base of over 1,500 clients, and building a team of over forty employees in less than a year has been an exciting challenge. Fortunately our growth strategy is producing the expected results, and our financial performance reflects that success.”
The projected third quarter revenues include quarter-over-quarter organic growth in CommerceTel’s continuing operations and two months results from its recently completed BoomText acquisition. CommerceTel expects its revenue from continuing operations to increase from $553,000 in the second quarter 2011 to more than $800,000 in the third quarter. In addition, the Company completed the acquisition of Digimark’s BoomText assets on Aug. 1, and expects to generate approximately $250,000 in combined August and September revenues from BoomText’s operations.
The company is also expecting that Adjusted EBITDA, defined as earnings before interest, taxes, depreciation & amortization, non-cash stock based compensation, and non-cash changes in the fair market value of derivatives, to continue trending towards positive territory and sustain improvement over the first and second quarters of 2011.
“We expect the combination of our acquisition strategy with our award-winning technology to provide more than top-line revenue growth,” added Becker. “As we continue the integration process, we believe all three acquisitions will contribute to improvement to our bottom line as well.”
CommerceTel also projects that fourth quarter revenues will exceed $1 million, topping full year 2010 revenues and representing over 320% growth compared to fourth quarter 2010 revenues of $236,000.