KeyOn Reports First Quarter 2011 Results

KeyOn Communications Holdings, Inc., one of the largest providers of wireless broadband, satellite video and voice over Internet protocol services in the United States, reported its financial results for the first quarter ended March 31, 2011.

Management CommentsJonathan Snyder, President and CEO of KeyOn Communications, commented, "We are now fully realizing the financial contribution of the acquisitions we completed throughout 2010. In the first quarter of 2011, we completed two additional acquisitions, bringing our total to 9 acquisitions in accordance with Rural UniFi and 13 overall. In addition, we are anticipating future revenue contribution from the wireless broadband network being constructed with $10.2 million of federal funding and are optimistic that funds for that project will be released in the second quarter."

Snyder continued, "During our first quarter includes results from the acquisitions of wireless broadband assets from Wells Rural Electric Company and ERF's Central and North Central Texas areas for only 2 months and 1 1/2 months, respectively, earnings grew 48% over the prior year's quarter and 11% on a sequential basis. On a pro forma basis for these acquisitions, first quarter earnings would have grown 67% and 25% on a prior year and sequential basis, respectively. We are continuing to experience the benefits of our growing scale as demonstrated by the fact that our Adjusted EBITDA loss has continued to narrow in the first quarter to $530,000."

The three month period ended March 31

2011 First Quarter Consolidated ResultsDuring the three month period ended March 31, 2011, we recognized earnings of $2,365,638, as compared to earnings of $1,594,959 while the three month period ended March 31, 2010, representing an increase of in broad outline 48%. Our increased revenue was a result of the subscriber growth resulting from the completion of seven acquisitions while the last three quarters of the year ended December 31, 2010 and the three month period ended March 31, 2011, as so then as the effects of the increase in organic marketing efforts while that second half of 2010.

OutlookJonathan Snyder continued, "We believe that the company is executing then on its plan for growth through organic subscriber additions and acquisitions. In the second quarter and throughout 2011, we expect continued growth and furthermore reductions of Adjusted EBITDA loss as we receive the full financial benefit of the acquisitions completed in this quarter and cost savings resulting from scale economies. KeyOn is as well working on creating other revenue streams through the sale of both higher bandwidth packages and value-added services to our existing subscriber base. For these services, we will look to either acquire the platform or partner. For the purpose, we have launched 4G markets in Southern and Northern Nevada as then as Nebraska and partnered with MiMedia for cloud-based media storage."

Measurement used

Non-GAAP MeasuresThis press release includes disclosure regarding "Adjusted EBITDA" which is a measurement used by KeyOn Communications to monitor business performance and is not recognized pursuant to this agreement GAAP. Consequently, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

"Adjusted EBITDA" is defined as revenues or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, broadband stimulus application expenses and other non-recurring expenses, including the duplication of accounting personnel, temporary employees, and travel and moving expenses in connection with the relocation of our accounting department. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor StatementThis press release contains forward-looking statements, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are in doing so prospective. Forward-looking statements may include, without limitation, the company's expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. 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 of the company's control, which could cause actual results to differ materially from such statements, including, without limitation, its ability to successfully complete accretive acquisitions and grow its business organically, maintain the health of the Company's networks to minimize losses to the Company's subscriber base, the Company's reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the Company's reliance on third party sales representatives and new and more burdensome telecommunications' regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company's filings with the Securities and Exchange Commission, including the information pursuant to this agreement the headings "Risk Factors" and "Forward-Looking Statements" in our Form 10-K filed on March 30, 2011. Accordingly, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Copyright © 2011 Business Wire. All rights reserved. All the news releases provided by Business Wire are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Furthermore distribution of these materials by posting, archiving in a public web site or database, or redistribution in a computer network is strictly forbidden.

Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc.. International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon technology information provided by third party analysts. Yahoo! has not reviewed, and by no means whatsoever endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon.