April 20, 2006 13:56 ET

ICOA Reports Record Q4 '05 and FY '05 Revenues

WARWICK, RI -- (MARKET WIRE) -- April 20, 2006 -- ICOA, Inc. (OTC BB: ICOA), a national provider of wireless broadband Internet networks and managed services in high-traffic public locations, today reported its financial results for its fourth quarter and fiscal year ended December 31, 2005 in its 10-KSB filed with the SEC.

For the fourth fiscal quarter ended December 31, 2005, the company generated revenue of $771,038, an increase of 97% versus $392,105 for the same period last year.

For fiscal year 2005, the company reported revenue of $2,475,914, a 111% increase over FY '04 revenue of $1,170,719. Transaction Service Fee revenue, in FY 2005 was $1,514,830 versus 2004 of $354,324, an increase of 327% year over year.

ICOA showed a Gross Margin Profit for the FY 2005 of $20,339 versus a loss in FY 2004 of ($30,667).

The company reported a net loss of ($9,237,334) as compared to a net loss of ($3,922,130) for the year ended December 31, 2004, due to an increase in one-time interest/finance expense of $3,922,982, which is primarily related to the recording of the convertible debentures, and SG&A of $1,364,795, which reflects the company's significant operational growth over the course of 2005.

Full financial results for Q4 '05 and FY '05 can be found in the company's 10-KSB, filed on April 20, 2006 with the SEC.

"2005 was a significant year of growth and transformation for ICOA," said Stephen Cummings, CFO. "The results reflect the positive trends in our business, as the company tightens expenditures on SG&A while improving its gross margins. The strong increase in recurring revenue is a positive signal that ICOA's business model is beginning to gain traction."

ICOA's CEO, Rick Schiffmann, said, "While we are extremely happy to report these financial results, ICOA's Management team continues to maintain a focus on increasing shareholder value by driving the company to become EBITDA positive and profitable. We believe that the broadband wireless industry is ripe for consolidation, and we hope to continue to build ICOA to be in a strong position in order to become a significant factor in the consolidation of this industry. We anticipate that 2006 will be another year of continued revenue growth for ICOA."

About ICOA, Inc.

ICOA, Inc. is a national provider of neutral-host wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operations, maintenance and management of neutral, common-use 802.11x standard WLAN Wi-Fi hot spot and hot zone infrastructure throughout airport facilities, quick-service restaurants, universities, travel plazas, marinas, hospitality and municipal/hot zone locations. ICOA owns or operates over 1,500 broadband access installations in high-traffic locations across 45 states. For additional information, visit To subscribe to ICOA's email alert system, please send an email to:

The foregoing contains "forward-looking statements" which are based on management's beliefs, as well as on a number of assumptions concerning future events and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ICOA's control that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see ICOA's filings with the Securities and Exchange Commission. ICOA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of ICOA.

Contact Information

  • For more information regarding ICOA, contact:
    Erwin Vahlsing, Jr.
    VP Finance
    (401) 352-2310