eLandia International, a technology enabler in Latin America, announced its second quarter results ending June 30, 2010.
eLandia continues to show improvement in its key financial metrics, including a 44% growth in revenues over the same quarter last year. This was driven by stronger demand for the company’s infrastructure and integration services in key markets combined with tighter operational controls across all areas of the business. Excluding Venezuela, where the company continues to strategically reduce its operations, revenues rose 74% over the same quarter last year. Venezuela represented 15% of revenues in the current quarter, compared to 30% in the prior year period, and 12% in the first six months of 2010 compared to 36% in 2009.
With cost associated with the Amper transaction and certain share based compensation expense added back, the Company improved earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA to ($450,000) in the second quarter of 2010 compared to ($10.2 million) loss in the same quarter the previous year. Adjusted EBITDA for the second quarter of 2010 and 2009 is net of $414,000 and $0 of Amper-related transaction expenses and $310,000 and $535,000 of non-cash share-based compensation expense, respectively. Adjusted EBITDA for the six months ended June 30, 2010 was ($832,000), compared to ($15.7 million) for the six months ended June 30, 2009. Adjusted EBITDA for the six months ended June 30, 2010 and 2009 is net of $532,000 and $0 of Amper-related transaction expenses and $626,000 and $1,170,000 of non-cash share-based compensation expense, respectively. This reflected higher revenues and ongoing efforts to streamline operations with tighter cost containment across the company.
eLandia reported an 83% decrease in losses compared to the same period in 2009, with a second quarter 2010 net loss of ($2.4 million) on a generally accepted accounting principles (GAAP) basis, compared to a net loss of ($14.0 million) for the second quarter of 2009. Net loss for the six months ended June 30, 2010 decreased 84% compared to the same period last year, from ($35.3 million) to ($5.5 million).
“During the quarter we continued to see significant improvements across a number of areas of our business. The company’s financial performance in Q2 provides a clear indication that we are on the right path,” said Pete R. Pizarro, chairman and chief executive officer of eLandia. “Our strategy of investing in the business during the downturn, combined with a focus on operational excellence, productivity and innovation, are driving our growth. We believe that we are well-positioned across Latin America-in our customer segments and key product categories-to leverage growing demand for technology investment.
Financial results for the applicable periods do not include results of operations from the previously announced transaction with Amper and the acquisition of its subsidiary Medidata in Brazil.
The term EBITDA (earnings before interest, income taxes, depreciation and amortization) and Adjusted EBIDTA are non-GAAP financial measures that the management of eLandia believes are useful to investors in evaluating the Company’s results. These non-gap financial measures should be considered in addition to, and not as a replacement for, or superior to, either income from continuing operations, as an indicator of eLandia’s operating performance, or cash flow, as a measure of eLandia’s liquidity. In addition, because these financial measures may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. eLandia’s management believes that presenting these financial measures as supplemental information helps investors, analysts, and others, if they so choose, in understanding and evaluating eLandia’s operating performance in some of the same manners that management does because these financial measures excludes certain items that are not directly related to eLandia’s core operating performance. eLandia’s management references these non-GAAP financial measures in assessing current performance and making decisions about internal budgets, resource allocation and financial goals.
EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. Either EBITDA or adjusted EBIDTA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These financial measures have certain limitations in that they do not take into account the impact to eLandia’s statement of operations of certain expenses, including stock-based compensation, amortization of non-cash marketing, amortization of intangibles, depreciation, gains and losses on asset dispositions, asset impairment charges, acquisition-related cost and charges and one-time items.
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