April 25, 2002
Affinity Internet Posts 1st Quarter 2002 Financials
Web Hosting Firm’s Positive Cash Position Makes Affinity A Market Leader
Mary Tokita
Public Relations
Independent Marketing
626.432.4594 x 114
mtokita@independentmktg.com
Fort Lauderdale, FL and El Segundo, CA – April 23, 2002 — Affinity Internet, Inc. (www.affinity.com), a leading provider of managed web and application hosting services, today announced positive cash flow for the first quarter 2002, which ended March 31, 2002.
The privately held company reported revenues of $7.3 million for the quarter, an increase of 280.8% over the same period last year. Gross margins reached 67% for the quarter, compared with 36% for the prior quarter. Reflecting Affinity’s rapid growth, EBITDA for March was $ $0.330 million, bringing first quarter EBITDA to $.437 million, compared with a loss of $0.4 million for the prior quarter. Other key metrics used to measure industry efficiencies and profitability include revenue per square foot of data center space which is $6,000, and annualized revenue per employee which is over $160,000.
Affinity’s performance stands in striking contrast to its competitors, which have posted substantial losses for the same period. “Our financial strength in this highly competitive and volatile market is a direct reflection of our dedication to our customers’ satisfaction,” said Tomas Mikaelsson, CEO of Affinity Internet, Inc. Affinity Internet recently merged with Cybergate/ValueWeb, forming the nation’s largest profitable web hosting company with over $35 million in annual revenue. The company now hosts more than 275,000 domains for over 100,000 customers worldwide.
"Because we have allowed our brands to maintain their unique identities, and have given our customers the opportunity to live in the world they chose to host, we don’t see the kind of churn typical during major acquisitions. In fact, we continue to experience unbelievably strong growth, with close to 8,000 new accounts every month. Our consistent growth clearly demonstrates that we will continue to maintain our positive cash position,” said Jim Collins, COO.
"From the beginning, our strategy has been to identify what our customers require, and make sure we exceed their expectations. Our consistent and rapid growth over the past eighteen months clearly shows that we are successful in our ability to anticipate and respond to customer needs, which will ensure our continued growth,” said Tiffani Bova, vice president of sales.
About Affinity
Affinity Internet, Inc. is the world's largest profitable web hosting company, providing managed web and application hosting solutions for small and medium size businesses. Affinity offers a comprehensive suite of shared and dedicated hosting products through a series of segment specific brands meeting the diverse needs of the SME marketplace. Today, the company hosts more than 275,000 domains for over 100,000 customers worldwide, and is the hosting partner for 2,000 resellers. The company has offices in El Segundo, CA, and Fort Lauderdale, Florida, with data centers in Baltimore, Los Angeles and Fort Lauderdale.
For additional information, please visit www.affinity.com.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, those relating to the pace of development and market acceptance of Affinity Internet’s products and the Web hosting industry generally, commercialization and technological delays or difficulties, the impact of competitive products and technologies, competitive pricing pressures, the possibility of our products infringing patents and other intellectual property of third parties, product defects, costs of product development and manufacturing and government regulation. Affinity Internet will not update these forward-looking statements to reflect events or circumstances after the date hereof.
####
