Global Traffic Network Revenues Up In Fiscal Third Quarter 2011
May 13, 2011 at 11:10 AM (PT)
GLOBAL TRAFFIC NETWORK fiscal third-quarter revenue rose 11% to $26.8 million, with revenue from the Company's Australian, Canadian and British operations up 7%, 11% and 19%, respectively, from the fiscal third quarter of 2010 (although, when measured in local currencies, Australian revenues actually fell 4% and Canadian and U.K. revenue rose 6% and 16%, respectively). The company pointed out that comparisons to third quarter 2010 are difficult because that quarter was "very strong, up 93% from the previous fiscal year." The company's net loss narrowed from $500,000 to $200,000; Adjusted Operating Income decreased from $2.7 million to $1.9 million.
Chairman/CEO/Pres. WILLIAM L. YDE III said, "We believe the decrease in Adjusted Operating Income this quarter is a temporary pause in our continued growth. Over the previous five quarters our trailing twelve month Adjusted Operating Income grew from $2.3 million to $15.9 million. For the nine month period ended MARCH 31st, our Adjusted Operating Income has almost doubled to $12.6 million from $6.6 million last year. Looking to the current quarter, we believe that the last year comparable is not as challenging as was third quarter 2010. We are off to a good start as revenue for April was strong, as all of our markets were up both in U.S. dollars and their local currencies. CANADA's bookings have already exceeded last quarter and the previous year finish so we expect a nice increase out of this market and anticipate Adjusted Operating Income being positive for the quarter. In addition, foreign currency exchange rates continue to have a positive impact on our consolidated results and based on the exchange rates to date appear poised to be a material benefit in the fourth quarter of fiscal 2011 as well.
"GLOBAL ALERT NETWORK, our personalized alerting product for mobile phones, has added a significant number of subscribers since our launch in FEBRUARY 2011. We now have in excess of 80 thousand users and had over 700 thousand traffic and weather alert messages received by these subscribers in the month of APRIL alone. We are in the process of attempting to secure charter advertisers for the service and expect to begin to generate revenue shortly."