euNetworks Reports First Quarter 2011 Results

First Quarter 2011

• Total revenue of €10.5m, up 19% from 1Q 2010
• Gross profit of €7.8m, up 22% from 1Q 2010
• Gross margin of 74.3%, up from 72.7% in 1Q 2010
• Adjusted EBITDA of €0.4m, improving from €(1.6)m in 1Q 2010
• Net loss of €(3.6)m, improving from €(8.4)m in 1Q 2010
• 14 new customers signed in the quarter

London, UNITED KINGDOM – 12 May 2011 – euNetworks Group Limited, announced strong first quarter results, with further improvement in key fundamentals. Total revenues grew by 19% year on year, from €8.8m in 1Q 2010 to €10.5m in 1Q 2011. All revenues were recurring in the quarter. Gross profit for the quarter increased by 22% from 1Q 2010. Gross margin for the quarter was 74.3%, up from 72.7% in 1Q 2010 and 70.1% in 4Q 2010. Adjusted EBITDA(1) was €0.4m for the quarter, achieved on the basis of recurring revenue and continuing the positive progression as the business scales. “These results are a good start to the year and our funnel of opportunity continues to grow,” said Brady Rafuse, Chief Executive Officer of euNetworks. “Sales were strong in the period and will generate new revenues in the next couple of quarters. Our key financial metrics have continued to improve, with growth in revenues year on year, increasing gross margin and positive adjusted EBITDA for the quarter. Our product set is meeting our customer’s bandwidth needs, with continued traction in both key and new market segments. I am encouraged by this first quarter performance and look forward to the year ahead.”

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