Radiant Communications Corp.

Radiant Communications Corp.

March 10, 2005 16:05 ET

Radiant Communications Announces Financial Results for Q4 and Fiscal 2004; Company Achieves 9th Consecutive Quarter of Record Revenues


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RADIANT COMMUNICATIONS CORP.

TSX VENTURE SYMBOL: RCX

MARCH 10, 2005 - 16:05 ET

Radiant Communications Announces Financial Results for
Q4 and Fiscal 2004; Company Achieves 9th Consecutive
Quarter of Record Revenues

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 10, 2005) - Radiant
Communications Corp. ("Radiant" or "the Company") (TSX VENTURE:RCX), the
largest organization in Canada focused exclusively on providing IP-based
data communications and Internet services to the business market, today
announced its financial results for the fourth quarter and fiscal year
ended December 31, 2004. Revenue in the fourth quarter of 2004, the
ninth consecutive quarter of record revenues, was $4.9 million, an
increase of 23% over the fourth quarter of 2003. Annual revenue for the
year ended December 31, 2004 was $18.1 million, up 17% over 2003.

"2004 was an exciting and very successful year for Radiant," said Jim
Grey, President and CEO. "We purposely invested in products and services
that met the needs of national customers requiring high availability and
high performance, secure networks connecting all of their North American
locations. We also invested in products for the retail industry allowing
them to connect their IP networks to Canada's Payment Processors for
credit and debit card processing, provide their customers with gift and
loyalty cards and provide high-speed access to their back office
systems. During the year we grew revenue every quarter, held margins
over 47% for the year, added many high profile national customers,
launched several new, highly competitive, IP-based products and achieved
a break-even position on operations in the fourth quarter. Our successes
in 2004 enabled us to raise $2.75 million of new financing in January of
2005 and enlist the services of Don Calder and Wendy Porter as important
additions to our Board."

Recurring Connectivity and Hosting revenue for 2004 was $13.7 million,
up 20% from 2003. Overall gross margin for the year was 48% compared to
47% in 2003. The net loss for the year was $3.4 million, which includes
$1.2 million of interest expense and $1.0 million of amortization. Not
including these expenses the operating loss would have been $1.2 million
for the year.

Significant highlights in 2004 included:

- Doubled our network capacity and relocated our Toronto datacenter to
151 Front Street to provide a strong base for future growth,

- Won many new, key, multi-location customers including Wal-Mart, Sun
Life Financial, Black's Photography, Burger King, and A&W,

- Announced the RetailConnect™ product suite including IP-based
payment gateway services and managed VPN's for secure, reliable and fast
corporate connectivity,

- Formed significant relationships with other retail industry service
providers including hardware and software suppliers and the Canadian
Payment Processors to enable us to provide a full solution capability to
Canadian retailers,

- Expanded the sales force in Toronto and Montreal to address the
growing market opportunities.

Additional details on both the financial year and fourth quarter
results, including the Audited Financial Statements and Management
Discussion and Analysis, are available at www.sedar.com under Radiant
Communications Corp.

ABOUT RADIANT COMMUNICATIONS

Radiant Communications Corp. (www.radiant.net/) provides a single source
for businesses requiring national IP data communications services
including, broadband and managed network services, Internet access, web
hosting, web development and marketing services.

The Company offers a complete range of broadband services including DSL,
T1, Frame Relay, and Cable. Radiant has also developed IP services for
the Canadian retail industry, namely, RetailCONNECT™ IP network
services and TurboSwitch IP payment gateway services. Radiant has
offices in Toronto, Montreal, Calgary, Edmonton and Vancouver.

To be added to Radiant's distribution list please complete the form on
Radiant's web site at www.radiant.net/ir_contact.cfm.

This press release may contain forward-looking statements, including
statements regarding the business and anticipated financial performance
of Radiant, which involve risks and uncertainties. These risks and
uncertainties may cause Radiant's actual results to differ materially
from those contemplated by the forward-looking statements. Factors that
might cause or contribute to such differences include, among others,
competitive pressures, the growth rate of the Internet and
telecommunications concerns, constantly changing technology and market
acceptance of the company's products and services. Investors are also
directed to consider the other risks and uncertainties discussed in
Radiant's required financial statements and filings. All other companies
and products listed herein may be trademarks or registered trademarks of
their respective holders.



RADIANT COMMUNICATIONS CORP.
Balance Sheets
(Expressed in Canadian dollars)
--------------------------------------------------------------------
--------------------------------------------------------------------
December 31, December 31,
2004 2003
--------------------------------------------------------------------

Assets
Current assets:
Cash and cash equivalents $ 359,967 $ 693,744
Short-term investments 575,000 2,650,000
Trade accounts receivable, net of
allowance for doubtful accounts
of $67,444 (2003 - $96,146) 2,138,041 1,694,382
Inventories 313,736 129,278
Prepaid expenses and deposits 197,347 140,582
Due from officer - 90,755
--------------------------------------------------------------------
3,584,091 5,398,741

Capital assets 1,651,143 1,133,811
Deferred financing costs 872,889 183,332
Intangible Assets 1,574,228 1,642,236
--------------------------------------------------------------------

$ 7,549,650 $ 8,358,120
--------------------------------------------------------------------
--------------------------------------------------------------------


Liabilities and Shareholders' Deficiency
Current liabilities:
Accounts payable and accrued
liabilities $ 3,160,644 $ 2,869,249
Customer deposits 195,740 160,947
Deferred revenue 1,952,634 1,708,287
Current portion of deferred lease
inducements 71,763 45,670
Current portion of long-term debt 3,198,670 75,802
Current portion of obligations under
capital leases 264,953 233,187
--------------------------------------------------------------------
5,390,858 5,093,142

Obligations under capital leases 219,357 11,419
Deferred lease inducement 49,420 221,666
Long-term debt 622,470 3,137,564

Shareholders' deficiency:
Share capital 28,559,806 28,559,806
Contributed surplus 1,595,349 300,823
Deficit (32,341,156) (28,966,300)
--------------------------------------------------------------------
(2,186,001) (105,671)
--------------------------------------------------------------------

$ 7,549,650 $ 8,358,120
--------------------------------------------------------------------
--------------------------------------------------------------------


RADIANT COMMUNICATIONS CORP.
Statements of Operations and Deficit
(Expressed in Canadian dollars)
--------------------------------------------------------------------
--------------------------------------------------------------------
Year ended Three months ended
December 31, December 31,
-------------------------- ------------------------
2004 2003 2004 2003
--------------------------------------------------------------------
(Unaudited) (Unaudited)


Revenue $ 18,094,194 $ 15,516,458 $ 4,891,924 $ 4,070,006
Cost of sales 9,466,768 8,271,669 2,678,936 2,216,518
--------------------------------------------------------------------

Gross profit 8,627,426 7,244,789 2,212,988 1,853,488

Expenses:
Sales and
marketing 3,681,930 3,012,360 818,247 826,367
General and
administrative 6,115,684 5,679,608 1,392,941 1,519,739
Amortization 1,038,461 1,622,601 241,127 464,222
--------------------------------------------------------------------
10,836,075 10,314,569 2,452,315 2,810,358
--------------------------------------------------------------------

Operating loss 2,208,649 3,069,780 239,327 956,840

Interest expense 709,546 586,907 207,441 160,272
Amortization of
warrant-based
deferred
financing costs 446,526 - 191,368 -
Non-cash interest
expense on
warrants 5,732 - 2,352 -
Other (income)
expense (79,737) 61,109 8,571 87,021
Due from officer 84,140 - 84,140 -
--------------------------------------------------------------------

Loss for the
period 3,374,856 3,717,796 733,199 1,204,133

Deficit,
beginning of
period 28,966,300 25,248,504 31,607,957 27,762,167
--------------------------------------------------------------------

Deficit, end
of period $ 32,341,156 $ 28,966,300 $ 32,341,156 $ 28,966,300
--------------------------------------------------------------------
--------------------------------------------------------------------

Basic and
diluted loss
per share $ (0.12) $ (0.19) $ (0.03) $ (0.05)

Weighted average
common shares,
used in
computing
loss per share
basic and
diluted 28,209,724 19,615,634 28,209,724 24,187,985
--------------------------------------------------------------------
--------------------------------------------------------------------


RADIANT COMMUNICATIONS CORP.
Statements of Cash Flows
(Expressed in Canadian dollars)
--------------------------------------------------------------------
Year ended Three months ended
December 31, December 31,
-------------------------- ------------------------
2004 2003 2004 2003
--------------------------------------------------------------------
(Unaudited) (Unaudited)

Cash provided
by (used in):

Operations:
Loss for the
period $(3,374,856) $(3,717,796) $ (733,199) $(1,204,133)
Items not
involving cash:
Amortization 1,038,461 1,622,601 241,127 464,222
Amortization of
warrant-based
deferred
financing
costs 446,526 - 191,368 -
Bonus accrual
on long-term
debt 110,526 - 47,368 -
Due from
officer 84,140 - 84,140 -
Stock based
compensation 76,795 109,303 22,535 85,678
Non-cash
interest
expense
on warrants 5,732 - 2,352 -
Unrealized
foreign
exchange
(gain) loss 6,615 19,676 4,172 3,738
Amortization
of deferred
lease
inducement (17,376) 44,556 (108) 20,420
--------------------------------------------------------------------
(1,623,437) (1,921,660) (140,245) (630,075)
Change in
non-cash
operating
working
capital:
Trade accounts
receivable (443,659) 102,382 (190,746) 15,666
Income taxes
recoverable - 45,453 - -
Inventories (184,458) 4,623 161,333 169,595
Prepaid
expenses and
deposits (58,085) 73,176 43,445 12,849
Accounts
payable and
accrued
liabilities 339,246 (372,905) 304,587 (385,682)
Customer
deposits 34,793 (17,690) (1,050) (3,509)
Deferred
revenue 244,347 33,010 48,695 17,400
--------------------------------------------------------------------
(1,691,253) (2,037,945) 226,019 (775,193)
Investments:
(Purchase)
sale of
short-term
investments 2,075,000 (2,650,000) - (2,500,000)
(Purchase)
disposal of
capital
assets (436,559) (852,167) (70,885) (228,605)
Customer
acquisition
costs - (26,474) - -
--------------------------------------------------------------------
1,638,441 (3,528,641) (70,855) (2,728,605)
Financing:
Due to
related party - (281,749) - -
Payments
under capital
leases (365,085) (559,506) (79,410) (94,774)
Proceeds from
sale-leaseback 203,970 - - -
Proceeds from
issuance of
debt - 245,000 - -
Repayment of
long-term
debt (96,224) (33,748) (24,318) (10,297)
Proceeds from
issuance of
shares - 4,000,000 - 4,000,000
Share
issuance
costs - (232,877) - (232,877)
Deferred
financing
costs (23,626) (1,426) - -
--------------------------------------------------------------------
(280,965) 3,135,694 (103,728) 3,662,052
--------------------------------------------------------------------

Increase
(decrease) in
cash and cash
equivalents (333,777) (2,430,892) 51,436 158,254

Cash and cash
equivalents,
beginning of
period 693,744 3,124,636 308,561 535,490
--------------------------------------------------------------------

Cash and cash
equivalents,
end of period $ 359,967 $ 693,744 $ 359,967 $ 693,744
--------------------------------------------------------------------
--------------------------------------------------------------------



-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Radiant Communications Corp.
    Chuck Leighton, CFO
    Investors
    (604) 692-4531
    (604) 608-0999 (FAX)
    cleighton@radiant.net
    or
    Radiant Communications Corp.
    Donna Gratton
    Media
    (604) 692-4573
    (604) 608-0999 (FAX)
    dgratton@radiant.net
    www.radiant.net
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.