REDWOOD SHORES, CA — (Marketwired) — 11/06/13 — (NASDAQ: IPAS), the global Wi-Fi roaming leader for enterprises and telecom service providers, today announced financial results for the third quarter ended September 30, 2013.
“The Open Mobile growth engine performed strongly this quarter, growing 5% quarter over quarter through the seasonally weak summer time period,” said , president and chief executive officer of iPass. “We continue to see traction with the OMX business, including an expanded relationship with Microsoft and an emerging opportunity with Google. Meanwhile, we are diligently focused on improving the user experience through better software and direct end user support, and despite the temporary headwinds of the Unity business, we are confident in the continued growth of our Open Mobile business.”
The following key operating metrics highlight the progress that the company made in Q3 2013 with its Open Mobile (OM) business.
Grew Open Mobile revenue to $12.6 million in Q3 2013, an increase of 5% sequentially and 66% over the third quarter of 2012.
Delivered the tenth sequential quarter of growth in total Open Mobile revenue.
Grew Open Mobile platform active monetized users by 8% from the previous quarter, representing 80% of total platform users, as of September 2013.
Increased Open Mobile smartphone and tablet Wi-Fi network users by 17% in September 2013 compared to June 2013.
The following highlight the progress that the company made in Q3 2013 with customer wins and new technology alliances.
Signed eleven new large enterprise customers to Open Mobile during the third quarter of 2013, including Shell, Euralis, Groupe SEB, Haribo, InterMune, and Virgin Australia Airlines.
Signed sixteen existing enterprise customers on Open Mobile during the third quarter of 2013, including Data Communications Business Group, ChungHwa Telecom Co., Ltd, Imperial Tobacco Limited, and Lubrizol Corporation.
Added two large and strategic carriers during the third quarter of 2013, further expanding iPass OMX customer base to over 30 carriers and service providers signed to date.
Dialog Axiata, Sri Lanka-s largest mobile network operator, launched its RoamDaily Wi-Fi service powered by iPass OMX.
Vertu, a pioneer of the luxury mobile telephone sector, now offers global Wi-Fi roaming powered by iPass OMX.
Partnered with Google and local Indonesian companies to develop technology for the Wi-Fi Passport project currently being tested in Indonesia.
Signed a strategic channel partner agreement with one of the largest U.S. telecommunications companies which allows the channel partner to expand its service portfolio by offering iPass Unity-s fully managed network solutions to its enterprise customers.
Signed key long-term renewals with a Fortune 500 financial services company, a Fortune 500 medical technology company, and a large provider of independent senior retirement care.
Expanded the iPass Unity strategic pilot program by signing several new agreements with prospective enterprise customers.
Released enhancements to the iPass Open Mobile clients for iOS and Android, including a native hotspot finder, speed test, and intelligent connectivity with signal strength messaging. These features enable easier discovery of iPass hotspots and a better connectivity experience overall.
Grew iPass- global footprint to approximately 1.5 million commercially available Wi-Fi hotpots in over 130 countries and territories, an increase of over 0.2 million since Q1 2013.
For the fourth quarter of 2013 ending December 31, 2013, iPass anticipates total revenue and adjusted EBITDA income (loss) to be in the following ranges:
iPass will host a live conference call today at 2:00 PM Pacific Time (5:00 PM Eastern Time).
The conference call will be accessible by telephone, toll-free at 888-359-3627 or direct dial at 719-325-2393 with a participant confirmation code of 3708830. The conference call will also be available live via webcast on the company-s web site at . The webcast will be available for replay until iPass reports its fourth quarter 2013 results.
The dial-in number for a telephone replay of the conference call is 888-203-1112 and 719-457-0820 and will be available until November 15, 2013. The confirmation code for the replay is 3708830.
The statements in this press release regarding iPass- expectations and belief that the Unity business is experiencing temporary headwinds, the confidence in the continued growth of Open Mobile, and iPass- projections of its fourth quarter 2013 financial results under the caption “Q4 2013 Guidance” are forward-looking statements. Actual results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties, including the following: the risk that the “End of Life” of iPass- legacy Mobile Office product may negatively impact customer retention and mobility revenues more than iPass expects; the risk that the Open Mobile platform and Open Mobile Exchange will not achieve the market acceptance iPass expects; the risk that iPass customers and partners may not be willing to agree to minimum purchase and resale commitments at the rate iPass expects; the risk of material reductions in iPass customers- existing minimum commitments more than iPass currently expects; the risk that iPass carrier and channel partners do not successfully market iPass services to their customers; the risk that iPass does not accurately predict usage for its Enterprise Flat Rate price plan which could result in iPass expenses exceeding revenues for these plans; the risk that iPass customers do not widely deploy iPass Open Mobile on smartphones, tablets and other mobile handheld devices at the rate iPass expects; the risk that demand for Mobility Services does not grow as iPass expects; the risk that strong competition in the market for Mobility Services and iPass Unity Network Services could reduce demand for iPass- services; the risk that iPass fails to address market requirements, evolving standards and technological changes in the mobility services industry, which could reduce demand for iPass- services; and the risk that a meaningful portion of iPass business is international, which subjects iPass to additional risks such as currency fluctuations. Detailed information about these and other risk factors that could potentially affect iPass- business, financial condition and results of operations are included in iPass- Annual Report on Form 10-K filed with the SEC on March 15, 2013, and available at the SEC-s Web site at and the company-s website at . iPass undertakes no responsibility to update the information in this press release if any forward-looking statement later turns out to be an inaccurate prediction of the actual results.
In addition, investors and others should note that iPass announces material financial information to its investors using its investor relations website, SEC filings, press releases, public conference calls and webcasts. iPass also uses social media to communicate with its customers and the public about iPass, its products and services and other matters relating to its business and market. It is possible that the information iPass posts on social media could be deemed to be material information. Therefore, iPass encourages investors, the media, and others interested in iPass to review the information it posts on U.S. social media channels including the iPass Twitter Feed, the iPass LinkedIn Feed, the iPass Google+ Feed, the iPass Facebook Page, the iPass Blog, the iPass Instagram, the iPass Pinterest and Evan Kaplan-s Twitter Feed. These social media channels may be updated from time to time.
This press release also contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). iPass considers Adjusted EBITDA as a supplemental measure of the company-s performance that is not required by, nor presented in accordance with GAAP.
The company defines Adjusted EBITDA as net income (loss) before interest income, income taxes, depreciation and amortization, stock-based compensation expense, restructuring charges, and certain state sales and federal tax charges. The company believes Adjusted EBITDA provides a meaningful comparison between its core operating results, on a consistent basis, over different periods of time. Accordingly, management uses this financial measure for evaluating and making operating decisions and for purposes of comparison with its strategic plan, operating budgets and allocation of resources.
Furthermore, iPass believes the use of Adjusted EBITDA is useful to investors:
1) To provide an additional analytical tool for understanding the company-s financial performance by excluding the impact of items which may obscure trends in the core operating performance of the business;
2) To provide consistency and enhance investors- ability to compare the company-s performance across financial reporting periods; and
3) To facilitate comparisons to the operating results of other companies in the company-s industry, which may use similar financial measures to supplement their GAAP results.
Adjusted EBITDA should not be considered in isolation, or construed as an alternative to net income, or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company-s liquidity.
iPass helps and ensure their employees and subscribers stay well connected. Founded in 1996, iPass delivers the world-s largest commercial-grade and trusted . With approximately 1.5 million Wi-Fi hotspots in over 130 countries and territories and millions of community hotspots around the globe, iPass gives its customers always-on, frictionless connectivity for smartphones, tablets and laptops anywhere in the world — simply, securely and cost effectively. Additional information is available at or on , the iPass blog.
NOTE: iPass® is a registered trademark of iPass Inc. Open Mobile, OME, Open Mobile Express, Open Mobile Exchange and OMX are trademarks of iPass Inc. Wi-Fi® is a registered trademark of the Wi-Fi Alliance. Other company names, logos and product or service names mentioned herein are the trademarks owned by their respective owners.
Mike Bishop
The Blueshirt Group
Tel. +1 415 217 4968
Email:
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