Sign in Subscribe
Software

Data Return Corporation Reports 372% Revenue Growth in Second Quarter of Fiscal 2000

Strategic Insights

— 1 min read

Data Return Corporation, a leading provider of advanced Internet hosting services based on Microsoft technologies, announced significant revenue growth in the second quarter of fiscal 2000. The company reported total revenue of $1.7 million, a 372% increase over the comparable quarter of fiscal 1999. This growth was driven by the addition of new clients, including Pier One Imports, Fossil, and Sensormatic Electronics, as well as existing customers who expanded their service relationships with the company.

Key Takeaways:

  • Data Return Corporation reported a 372% increase in revenue for the second quarter of fiscal 2000, reaching $1.7 million.
  • New clients accounted for more than 80% of total revenue growth, with notable additions including Pier One Imports, Fossil, and Sensormatic Electronics.
  • Existing customers who expanded their service relationships with the company included First USA Bank, Berlitz Languages, and KPMG.
  • Data Return added more than 130 enterprise customers, bringing the total customer base to almost 800.
  • The company more than doubled its staffing in the second quarter to enhance customer support and launch new managed hosting services for Microsoft Exchange.
  • Second-quarter EBITDA was negative $1.7 million, or $0.06 per share, while the net loss was $1.9 million, or $0.07 per share.
  • Data Return's strategic partnerships with Microsoft, Compaq, and Level 3 provide a leveraged business model, creating competitive advantage in areas such as infrastructure, joint development, and server technology.
  • The company's focus on the Microsoft Platform allows for expertise in deploying and managing scalable, high-performance, and high-availability hosted applications.

Statistics:

  • Total revenue for the second fiscal quarter of 2000 was $1.7 million.
  • Revenue was up 372% over the comparable quarter of fiscal 1999 ($366,000).
  • New clients accounted for more than 80% of total revenue growth.
  • The company added more than 130 enterprise customers.
  • Total customer base is almost 800.
  • Second-quarter EBITDA was negative $1.7 million.
  • Net loss for the quarter was $1.9 million.
  • On November 4, 1999, Data Return completed an initial public offering of 6.25 million shares of common stock at $13.00 per share.
  • Strategic partners invested a total of $13 million in the company through the purchase of common stock.

Sources:

  • Business Wire, November 22, 1999
  • Data Return Corporation's Press Release, November 22, 1999

Read more