Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272
Sitestar Reports Second Quarter Financial Results
Company Posts Eleventh Consecutive Profitable Quarter Buoyed by Steady Revenue and Continued Growth
| Source: Sitestar Corporation
LYNCHBURG, VA--(Marketwire - August 14, 2007) - Sitestar Corporation (OTCBB : SYTE ), a
provider of residential and business Internet access, web hosting and
value-added products and services, announced today its financial results
for the quarter ended June 30, 2007. It marks the eleventh straight
quarter of profitability for the Company which has grown its revenue
primarily by increasing its Internet subscriber base through strategic
acquisitions and by controlling operating expenses.
Revenue for the six months ended June 30, 2007 increased by $146,162 or
5.2% from $2,822,552 for the six months ended June 30, 2006 to $2,968,714
for the same period in 2007. The increase is largely attributed to the
addition of Internet customers from the asset acquisitions of Magnolia
Internet Services, OW Holdings (OneWest) and AlaNet. These acquisitions,
for the six months ended June 30, 2007, yielded approximately $586,000 in
additional net revenues.
"Dial-up continues to be a highly lucrative market segment for Sitestar and
is the chief source of our revenues," said Frank R. Erhartic, Jr., CEO for
Sitestar. "2007 appears to be a pivotal year for dial-up because ISP
owners are increasingly weighing the benefits of selling their subscriber
bases amidst stout competition from cable and telco broadband providers.
This trend puts Sitestar and other remaining consolidators in an
advantageous and opportunistic position. As a result, we are actively in
negotiations with large and small ISPs and everything in-between."
"Additionally, we are exploring and ramping up other areas of our business
to enable us to both complement and potentially supersede our dial-up
revenue. We are near the launch date for our Voice-over-Internet Protocol
(VoIP) service and expect to gradually increase resources to grow our web
hosting business both organically and through acquisition. These advances
along with our successful dial-up acquisition initiatives make us confident
that Sitestar will continue to deliver strong and profitable quarters for
some time into the future."
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements that are based on
management's expectations, estimates, projections and assumptions. The
Company assumes no obligation except as required by law to update the
forward-looking statements contained in this press release as a result of
new information or future events or developments. These forward-looking
statements generally can be identified by words such as "believes,"
"expects," "projects," "anticipates," "foresees," "forecasts," "estimates,"
"should" or other words or phrases of similar import. Forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended. These statements are
not guarantees of future performance and involve certain risks and
uncertainties, which are difficult to predict. Therefore, actual future
results and trends may differ materially from what is forecast in
forward-looking statements due to a variety of factors, including and
without limitation, as found in the Company's reports filed with the
Securities and Exchange Commission.
About Sitestar
Sitestar (www.sitestar.com) is an Internet and computer solutions provider
that offers consumer and business-grade Internet access, Web hosting and
design, and other value-added services including web acceleration, spam and
virus filtering as well as spyware protection. Headquartered in Lynchburg,
Virginia, Sitestar maintains multiple sites of operation and provides
services to customers throughout the U.S. and Canada, with concentrations
of customers in the Mid-Atlantic and Rocky Mountain regions in the U.S. and
in Ontario, Canada. With a focus on competitive pricing, reliability,
service and speed, Sitestar delivers customer value.