August 21, 2006 10:59 ET

ICOA Reports 75% Rise in Quarterly Revenue, Improved Operating Results

WARWICK, RI -- (MARKET WIRE) -- August 21, 2006 -- ICOA, Inc. (OTCBB: ICOA), a national provider of wireless broadband Internet networks and managed services in high-traffic public locations, today reported a 75% increase in revenues and a 95% reduction in net loss for the three months ended June 30, 2006.

Revenues for the second fiscal quarter were $767,590, an increase of $328,841 from the $438,749 reported for the second quarter of 2005. The company reported a net loss of $91,102 for the latest quarter, compared to a net loss of $1,717,128 for the same period a year earlier.

The company noted that a large portion of the reduction in loss, $1,264,197, resulted from a "mark to market" adjustment of a derivative liability related to certain debentures. The Company determined that the conversion feature of these debentures represented an embedded derivative, and that the conversion feature must be accounted for as a derivative liability rather than as debt.

The operating loss for the latest quarter was $1,044,438, an improvement of $133,347 from the operating loss of $1,177,785 for the year-earlier quarter.

George Strouthopoulos, the Company's Chairman, President and Chief Executive Officer, said, "In the final days of the quarter we made key changes intended to restore ICOA's momentum, accelerate sales, focus on our higher-margin core areas of business, strengthen our balance sheet and, most importantly, ensure that we continue to earn the confidence and loyalty of our customers and strategic partners."

On June 26 Mr. Strouthopoulos, then Board Chairman, took the additional posts of President and Chief Executive Officer. The Board also named Erwin Vahlsing Jr. to the position of interim Chief Financial Officer.

Since the management change, ICOA has eliminated approximately $600,000 per year in recurring operating expenses and established an ongoing program aimed at reducing overhead. It has stabilized revenues, and begun an extensive program to increase margins. The Company has also raised $305,600 in equity and convertible debenture funding.

"Key to our long term growth and improving margins will be our continuing success in moving to a business model based on recurring service revenues, rather than one-time equipment sales and installation projects," Mr. Strouthopoulos said. "During the first six months of 2006, more than 84% of revenue was from recurring sources, compared to about 64% a year earlier."

ICOA is a provider of Wi-Fi or wireless broadband networks and services, primarily delivering Internet access to the customers of airports, hotels, chain restaurants, marinas, RV parks and other high-traffic, high-value locations. In many cases these venues offer the Wi-Fi service as a free or paid amenity.

In addition to handling the equipment, installation and configuration of these Wi-Fi networks, ICOA offers important back-end services to manage and secure these networks, handle customer support for the venue's customers, serve venue-specific advertising and other content, and optionally screen out offensive content.

"Offering Wi-Fi access is a powerful way to build customer traffic and loyalty," Mr. Strouthopoulos noted. "But a restaurateur or hotel manager doesn't want to configure a wireless network, or help a customer configure VoIP software. We provide the expertise, back-office technology and end-user support that makes Wi-Fi truly hassle-free for the venue," he said.

About ICOA, Inc.

ICOA, Inc. is a national provider of wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operation, maintenance and management of Wi-Fi hot-spot and hot-zone Internet access. Based in Warwick, Rhode Island, ICOA owns or operates over 1,800 broadband access installations in high-traffic locations across 45 states, located in airports, quick-service restaurants, hotels and motels, travel plazas, marinas, universities, and municipal structures and locales. ICOA networks are compatible with widely-used 802.11x technology and with virtually all Internet service providers. Further information is at

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties, many of which are outside ICOA's control. These include but not limited to the impact of competitors' products, services and pricing; product demand; market acceptance; new product development; reliance on key strategic alliances; the regulatory environment; fluctuations in operating results; and other risks which are detailed from time to time in the Company's filings with the Securities and Exchange Commission. ICOA disclaims any obligation to update or alter its forward-looking statements whether as a result of new information, subsequent events or otherwise.

Contact Information

  • Press contact:
    Alexander Auerbach
    Auerbach & Co. Public Relations