Global Telecom & Technology Reports 2Q Results

Global Telecom & Technology (GTT), a network integrator that provides its clients with a broad portfolio of wide-area network and mobility services, announced results for the second quarter ended June 30.

In a release dated August 12, the company stated:

- Revenue grew sequentially to $16.1 million as compared to $15.7 million for the first quarter 2009. Revenue declined as compared to $17.3 million in the second quarter of 2008 due to the substantial weakening of the Euro and British Pound Sterling to the U.S. Dollar since last year. Absent currency translation impacts, revenue recorded in local currency for second quarter 2009 grew in comparison to the second quarter 2008.

- Gross margin increased sequentially to 29.1 percent as compared to 27.0 percent in the previous quarter, and declined slightly year over year from 30.1 percent in 2008.

- As a percentage of revenue, selling, general and administrative (SG&A) expense, excluding non-cash compensation, was sequentially flat at 22.5 percent for the quarter, but decreased when compared to 27.7 percent in the second quarter 2008.

- Adjusted Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)* increased 47 percent sequentially to $1.1 million in the second quarter 2009, and increased 150 percent year over year when compared to $0.4 million in 2008.

"We are very proud to have reached two significant milestones, both of which demonstrate sustained profitability. We surpassed $1 million in Adjusted EBITDA for a quarter, and we generated positive operating and net income for the first half of 2009," said Richard D. Calder, Jr., president and chief executive officer. "GTT excels in combining multiple networks and technologies to deliver cost-effective solutions for our clients' unique requirements, and we recently announced several new client wins, including Vantage, Pilkington, WINC, and RWT Telecom."

"With very modest capital expenditures for the quarter and year-to-date, our adjusted EBITDA tightly correlates to cash generation, which we have used to continually strengthen our working capital," said Eric A. Swank, chief financial officer. "With our strengthening balance sheet, eight-quarter history of positive adjusted EBITDA, and global sales and operating platform, we believe GTT is well positioned to grow both organically and otherwise."

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