December 19, 2006 - 2:45 PM EST
Juniper Reports 3rd Consecutive Quarter of Growing Revenues of $1.4 Million for Quarter Ended September 30, 2006
BOCA RATON, Fla., Dec. 19, 2006 (PRIME NEWSWIRE) -- Juniper Group, Inc. (OTCBB:JUNI) reported a third consecutive quarter of revenue growth. Juniper reported strong third quarter revenue for September 30, 2006 of approximately $1,400,000 vs. approximately $142,400 for same period in 2005. The increase in revenues was due to the continued growth of the customer base. Juniper's CEO, Vlado P. Hreljanovic, stated, "We are very pleased with our third quarter performance. Now we want to build out the business model of building branch offices in selected cities beginning in 2007. We continue towards our goal of moving from a regional player to a national force in the broadband and wireless infrastructure services market. The path of growth is now in its third consecutive quarter."
Here is an overview of Juniper's recent revenues (The financial statements for the period ended December 31, 2005, March 31, 2006 and June 30, 2006 have been restated to reflect for stock based compensation pursuant to SFAS No. 123, APB opinion #25 and FASB - EITF No. 98-5):
Year end 1QTR 2QTR 3QTR
12-31-05 3-31-06 6-30-06 9-30-06
Revenue $ 581,000 $1,159,000 $1,214,000 $1,400,000
Operating
Cost 515,000 901,000 785,000 1,011,000
Gross
Profit 66,000 (11%) 258,000 (22%) 430,000 (35%) 388,000 (28%)
Net loss $(5,148,000) $ (385,000) $ (191,000) $ (151,000)
For the quarter ended September 30, 2006 vs. the quarter ended September 30, 2005, the net loss per share decreased to $(0.01) from $(0.08) on revenue of approximately $1,400,000 for the three month period ended September 30, 2006. Juniper's gross profit margin for the three month ended September 30, 2006 was approximately $388,200 representing 28% of revenue. While gross profit fell slightly in the third quarter, it was mainly due to some new customer contracts.
Selling, general and administrative costs increased from $437,200 for the third quarter 2005 to approximately $456,300 for the third quarter 2006 which was a small increase over the previous quarter where sales were much smaller.
Nine Months Ended September 30,
2006 2005
Revenues:
Broadband & Wireless
Installation & Services $ 3,773,000 $ 380,600
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Total Cost of Revenue 2,698,300 302,663
Gross Profit 1,074,800 (28.5%) 77,900 (20.2%)
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Corporate, general and admin
cost (1,583,800) (1,316,800)
Net (loss) $ (726,900) $(2,647,400)
Net cash for operating
activities (40,300) (600,900)
Cash at end of quarter $ 235,600 $ 3,700
Shares outstanding 14,389,748 12,155,654
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Basic and diluted net income
(loss) per common share $(0.05) $(0.22)
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The Company's gross profit margin for the nine month ended September 30, 2006 was approximately $1,075,000 representing approximately 28% of revenue, compared to approximately $77,913 gross profit margin for the nine month ended September 30, 2005 representing approximately 20% of revenue.
Selling, general and administrative expenses increased from $1,316,800 for the nine month ended September 30, 2005 to $1,583,800 for the nine month ended September 30, 2006, representing an approximate 20% increase. However, the selling, general and administrative as a percentage decreased from approximately 346% of revenue for the nine month ended September 30, 2005 to approximately 42% of revenue for the nine month ended September 30, 2006, a decrease as a percentage of revenue of approximately 304%. The Company shall continue to monitor its' selling, general and administrative costs as a percentage of revenue. This increase in selling, general and administrative expense is primarily due to salary expenses of approximately $142,000, rent of approximately $21,000, and SEC expenses of $19,000, offset by a decrease in legal fees of approximately $36,000. This increase was also attributable to the New Wave acquisition and the inclusion of their selling, general and administrative costs.
Cash flow used for operations during the nine month period ended September 30, 2006 was $40,300, compared to cash flow used for operations for the nine months ended September 30, 2005 of $600,900. Cash on hand has increased substantially to $235,600 as of September 30, 2006 compared to $3,700 as of September 30, 2005. Juniper's CEO, Vlado P. Hreljanovic, commented, "While the Company will continue to seek capital for expansion into new markets, we also are in a stronger cash position due to recent success and new contracts."
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