has announced financial results for its third quarter ended September 30, 2003.
Revenues for the third quarter ended September 30, 2003 were $35.0 million, representing a 46% increase over revenues of $24.0 million for the same period last year and a 6% increase over revenues of $33.1 million for the quarter ended June 30, 2003. Operating income for the third quarter was $6.2 million, representing a 149% increase over operating income of $2.5 million for the same period last year, and a 9% increase over operating income of $5.6 million for the quarter ended June 30, 2003. Net income for the third quarter, which reflects a research and development tax credit of approximately $1.0 million, was $4.5 million, or $.07 per diluted share, based on approximately 64.5 million fully diluted shares outstanding, compared with $2.2 million, or $0.04 per diluted share, based on approximately 52.8 million fully diluted shares outstanding, for the same period last year. Net income increased 105% over the same period last year and 51% over the quarter ended June 30, 2003.
The company ended the quarter with $132.4 million in cash, cash equivalents and short-term investments and no debt. This total compares to a balance of $35.5 million at the end of the June quarter. During the quarter, this balance increased by $96.9 million due principally to the $102.7 million net proceeds from the company’s initial public offering in July, and partially offset by the complete debt repayment of $10.9 million. Strong positive cash flow from operations accounted for the remaining $5.1 million of the increase in the quarter.
“We are pleased to report continued strong revenues and record operating income growth. In fact, the September quarter was our sixth consecutive quarter of sequential revenue and operating income growth,” said iPass CEO Ken Denman. “Enterprise customers worldwide continue to select our software-enabled virtual network solution to provide secure connectivity to their increasingly mobile workforces. Our results this quarter reflect the strength and predictability of our usage-based business model.”
“During Q3, we were able to execute on strategic initiatives, such as adding several marquee users of our service, introducing Wi-Fi Roaming Services and continuing to increase our broadband footprint with the addition of several hundred locations including a number of key airports around the world. We took another important step in technology leadership with the roll out of our iPass Connect 3.0 software service interface.”