OnFiber Communications Inc., a provider of metro network solutions, today announced that its continued success and growth in 2003 has resulted in more than 100 percent annual revenue growth over 2002. This marks the second year in a row that the company has achieved triple digit revenue growth. At the end of 2003, OnFiber had expanded its metropolitan network footprint, accumulated more than $50 million in recurring services revenue, and further penetrated the enterprise market with custom network projects. “Our intense focus on customer service has proven to be the key to our success and has put us in an excellent strategic and financial position as we enter 2004,” said Danny Bottoms, president and CEO, OnFiber. “Carriers continue to turn to us for our ability to provision quickly, however we expect the primary growth area this year to be with enterprise customers.
OnFiber predicts 2004 will be a year of continued change in the telecommunications market. “The first round of consolidation in this market was based on down-market economics. However, we are now at a point where the industry has matured and the survivors are looking for acquisition opportunities that will be more strategic in nature,” added Bottoms.
“OnFiber continues to evaluate opportunities as they present themselves and expects 2004 to be an eventful year.
Since OnFiber’s inception in 1999, the company has grown its revenue every quarter. For the year 2003, OnFiber generated triple digit revenue growth for the second consecutive year. Revenue per employee increased to $350,000 in 2003, indicating that the company is operating efficiently and driven to achieve industry-leading financial metrics. The company reached EBITDA positive in the first quarter of 2003 and ended the year with EBITDA margin of approximately 20 percent. In the third quarter of 2003, OnFiber achieved operating cash flow positive status. With current total contract value of more than $50 million, OnFiber is on track to be free cash flow positive in 2004.
OnFiber’s customer base includes carriers and enterprises who continue to demand wavelength, Ethernet and SONET services. In 2003, the company increased its focus on the enterprise market and achieved success in this fast growing segment with new customers such as Adobe Systems, Overture and Shutterfly. Additionally, several larger enterprises turned to OnFiber in 2003 for custom-built networks that will be ready for service in early 2004.
“OnFiber’s commitment in delivering end-to-end, custom-built network solutions for their customers is a key differentiator and important component of their continued success and growth,” said David Parks, senior analyst, The Yankee Group. “Based on their track record and expertise, OnFiber is well positioned to capitalize on the increasing market demand for high-bandwidth metro services.