[April 23, 2007] Eagle Broadband Reports Second Quarter 2007 Results Tweet LEAGUE CITY, Texas --(Business Wire)-- Officials with Eagle Broadband, Inc. (OTCPK: EAGB), a leading national provider of broadband, Internet protocol (IP) and digital communications technology and services, today announced that the company has filed its Form 10-Q with the Securities and Exchange Commission reporting results for the fiscal quarter ended February 28, 2007. Compared to the second quarter of last year, revenues increased by 13% and gross margins improved by almost $500,000. Loss from operations for the quarter was $2.4 million, an improvement of more than $1 million from the same quarter last year. "The improvement in operating results reflects the implementation of our cost-cutting efforts and our continued focus on selling our products and services at healthier margins," said Dave Micek, president and CEO of Eagle Broadband. "Operating expenses for the first six months of fiscal 2007 are down by more than $1.75 million compared to fiscal 2006, when you exclude the one-time, $900,000 credit to bad debt expense we recognized in the first quarter of last year." Net loss for the second quarter was $4.3 million, slightly higher than the $4.1 million net loss for the same quarter last year. Interest expense for the second quarter was $998,000, an increase of $720,000 compared to the same quarter last year. In addition, the company recognized $864,000 in derivative expense in the quarter, compared to derivative income of $20,000 in the prior year's quarter. Derivative income and expense arises from changes in the fair value of Eagle's derivative financial instruments and does not represent cash inflows or outflows. Micek continued, "We have our costs under control, our super-headend is complete and delivering more than 250 channels of IPTV content to multiple customers, and we have successfully integrated the Connex and Alliance Telecom assets into our IT services division. The positive effect of acquiring Connex and ATS, as well as bringing Tony Cordaro to Eagle, is starting to show positive results." A summary of operational highlights for the quarter includes: -- Signed a contract with FrontGate Broadband to deliver IPTVComplete(TM) in Florida -- Shipped 500 units of Eagle's newest set-top box, the MediaPro IP3000HD, to a leading hospitality solutions provider -- Signed a contract with the same hospitality solutions provider under which Eagle could ship more than $6 million in set-top boxes over a 13-month period if delivered according to the customer's service schedule -- Acquired the customer base of Connex Services, Inc., a Houston-based IT services company -- Appointed Tony Cordaro, the former president and CEO of Connex, as vice president of IT Services, and Kane Brushwood, a former Connex executive, as a director of IT Services -- Secured a satellite communications system contract with Fort Bend County, Texas, to provide a portable SatMAX(R) Emergency Communications System and pre-wire the County's emergency operations center -- Received a patent on our advanced set-top box technology that ensures secure delivery of digital television content -- Received a series of contracts and completed installations of VoIP office support systems at five regional hurricane-recovery program offices for a world-renowned international disaster-relief organization -- With ANEW Broadband, launched a joint collaboration of ANEW Vision; a triple-play service offering, specifically designed for multi-dwelling buildings. About Eagle Broadband, Inc. Eagle Broadband is a provider of Internet protocol (IP), information technology services and satellite communications products and services. The company's product offerings are: -- IPTVComplete(TM), delivering over 250 channels of digital television and music content via IP to many market sectors, such as to multi-dwelling unit operators (e.g., condominiums), triple-play operators (Internet data, phone and television, all over IP) or telephone companies, including our MediaPro standard or high-definition set-top boxes for both hospitality and IPTV customers; and -- IT Services, through which we provide various IP and satellite-related technology implementations to a broad cross section of markets, including remote network management, structured cabling, IT integration services and our patented SatMAX(R) satellite telephony extension technology. For more information on Eagle Broadband, visit www.eaglebroadband.com This release contains forward-looking statements regarding Eagle Broadband, Inc. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, the company's ability to continue as a going concern, the company's liquidity constraints and ability to obtain financing and working capital on favorable terms, the continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission. [ Back To TMCnet.com's Homepage ]