Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272
Sitestar Announces Third Quarter Financial Results
Company Notches Twelfth Consecutive Profitable Quarter
| Source: Sitestar Corporation
LYNCHBURG, VA--(Marketwire - November 15, 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 September 30, 2007. The Company continued its streak
of consecutive profitable quarters by maximizing operational efficiencies
for Internet access customers acquired in the previous quarters this year
and set the stage for a strong fourth quarter performance by engaging in
negotiations with USA Telephone for the recently completed acquisition of
nearly 40,000 narrowband subscribers marketed under the Nationwide, InReach
and DFW Internet brands.
Revenue for the nine months ended September 30, 2007 increased by $164,163
or 3.8% from $4,286,437 for the nine months ended September 30, 2006 to
$4,450,600 for the same period in 2007. The increase in Internet sales is
attributed to the integration and optimization of operating expenses
related to the asset acquisitions of Magnolia Internet Services, OW Holding
(One West) and AlaNet. Combined, these acquisitions, for the nine months
ended September 30, 2007, yielded approximately $1,024,000 in additional
net revenues.
"As we continue to grow Sitestar, our momentum begets a beneficial,
self-perpetuating cycle. With greater cash flow, we can close not only more
acquisitions, but also larger deals," said Frank R. Erhartic, Jr., CEO for
Sitestar. "Plus, we can leverage existing infrastructure to support newly
added customers at little-to-no incremental operational cost and negotiate
more advantageous terms with our suppliers."
"Dial-up acquisitions will drive our core growth in 2008," added Mr.
Erhartic. "However, we expect our web hosting and soon-to-be launched
Voice-over-Internet Protocol (VoIP) initiatives to begin to have an
increasingly positive impact on our revenue stream going forward."
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 is an Internet solutions provider that offers consumer and
business-grade Internet access, Web hosting and Voice over Internet
Protocol (VoIP). Headquartered in Lynchburg, Virginia, Sitestar maintains
multiple sites of operation and provides services to customers throughout
the U.S. and Canada. With a focus on competitive pricing, reliability,
service and speed, Sitestar delivers customer value. For more information,
visit www.sitestar.com.