IASG's revenue increases, net loss widens
ALBANY, N.Y.--Integrated Alarm Services Group announced second quarter 2005 results on August 9. The company said revenue for the period was up 27 percent to $24.7 million when compared to $19.5 million for the same period in 2004.
The net loss for the three months ending June 30, climbed to $6.3 million, or $0.26 per share. The company reported a net loss of $2.6 million, or $0.10 per share, for the first three months of the year. IASG associated the deficit with activities surrounding Sarbanes-Oxley compliance.
Earlier this year, the company faced delisting from Nasdaq as the result of failing to file its annual report with the Securities & Exchange Commission. By mid-June, the company resolved any outstanding problems with the SEC.
The company's annual attrition rate spiked to the highest level in more than one year in the second quarter of 2005. Attrition increased to 13.8 percent for the period, up from 10.9 percent from the beginning of the year and 11.3 percent for the last quarter of 2004.
"We are disappointed with the increase in second quarter attrition rates and are redoubling our efforts to address this critical metric," Timothy M. McGinn, chairman and chief executive officer at the company, said in a statement.
IASG added 4,212 contracts during the second quarter. Out of that number, the company acquired approximately 2,242 contracts and paid a gross purchase price of $27.80 per contract in cash. The company said nearly $2 million was spent to acquire these accounts.