WARWICK, R.I., Aug. 20, 2004 (PRIMEZONE) -- ICOA, Inc. (OTCBB:ICOA), a provider of broadband Internet access solutions in high traffic public locations, reported record financial results for its second quarter, ended June 30, 2004, as the Company continued to execute on its growth strategy. For the quarter ended June 30, 2004, the company generated revenue of $338,389 and reported its first positive gross margin of $17,457.
Second quarter revenue of $338,389 represents an increase of 242% over first quarter revenue of $140,040 and year to date revenue of $478,429, representing a 607% increase versus the $67,682 of revenue reported for the six months ended June 30, 2003. The gross margin for the quarter ended June 30, 2004 was $17,458 versus a loss of ($88,398) for the quarter ended June 30, 2003. For the six months ended June 30, 2004 the gross margin was ($29,085) versus ($150,723) for the six months ended June 30, 2003. The increases result from an increase in equipment sales and growth of transaction service revenue. With the revenue growth, the net loss for the quarter ended June 30, 2004, increased to $711,142 from $429,647 for the comparable prior year period. At the end of the second quarter, the company had cash on hand of $410,932 and total assets of $1,861,993. Complete results can be found in the company's Form 10-QSB filed with the Securities and Exchange Commission.
"I am extremely pleased to report our strongest financial and execution results to date," said George Strouthopoulos, CEO. "We expanded our network operations into over 410 locations, closed another key acquisition, continued cleaning up our balance sheet, reduced old debt, built the foundation of our emerging new management team, and recorded a significant increase in operating revenue and a positive gross margin."
"The company made significant improvements to our balance sheet this quarter," said Erwin Vahlsing, Jr., CFO. "Of particular note is the company reaching agreement with various lenders and investors to convert over $2.6 million in debt to equity."
"We are positioning ICOA for sustained growth. We intend to build our business in the second half of 2004 and beyond through a combination of organic growth in our core business units and potential highly-qualified acquisitions in promising complementary verticals," Strouthopoulos said.
Highlights for ICOA's second fiscal quarter of 2004 include:
-- Closed on the acquisition of iDockUSA, establishing ICOA as a major provider of broadband wireless to marinas nationally, now reaching 34 marinas and over 18,000 slips.
-- Doubled from three to six the size of the airport network serving over 20 million passengers annually.
-- Surpassed 325 Panera Bread locations, creating the largest US network of free hotspots.
-- Concluded a roaming agreement with Boingo Wireless, opening the ICOA airport and marina networks to seamless access by Boingo's subscriber base.
About ICOA, Inc.
ICOA, Inc., (OTCBB:ICOA) located in Warwick, RI, is a provider of neutral host wireless and wired broadband Internet networks in public locations. ICOA, Inc. provides design, installation, operations, maintenance and management of neutral, common-use 802.11x standard WLAN Wi-Fi Hot Spot and Hot Zone infrastructure throughout airport facilities, Quick Service Restaurants, Marinas and Hospitality locations, as well as High Speed Internet Terminals (WebCenter3000(tm)). ICOA currently operates or manages over 410 installations, including 325 Panera Bread locations, the San Francisco International Airport (SFO), Spokane International Airport (GEG), the Greater Baton Rouge, Louisiana Airport (BTR), Sacramento International Airport (SMF), Manchester Airport (MHT), Savannah/Hilton Head International Airport (SAV), Fresno-Yosemite International Airport (FYI), 34 Marinas in California and "Hot Zones" in Rhode Island's Newport Harbor and Boston's South Harbor. For additional information, please visit www.icoacorp.com.
'Safe Harbor'
The foregoing contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ICOA's control that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see ICOA's filings with the Securities and Exchange Commission. ICOA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of ICOA.