MDTV MDU Communications Reports a 200% Increase in the Rate of Subscriber Growth in Second Quarter; Continued Backlog and Work-In-Progress Growth
MDU Communications Reports a 200% Increase in the Rate of Subscriber Growth in Second Quarter; Continued Backlog and Work-In-Progress Growth
TOTOWA, N.J.
MDU Communications International, Inc.
Sheldon Nelson
CEO
(973) 237-9499
investor@mduc.com
www.mduc.com
MDU Communications International, Inc. (OTCBB:MDTV), a leading end-to-end provider of DIRECTV(R) digital satellite television programming, high-speed Internet and other premium communication and information services to the residential multi-dwelling unit ("MDU") market, today reports its second fiscal quarter subscriber results for the period ended March 31, 2005.
For the quarter ended March 31, 2005, the Company added 4,055 subscribers to its services as compared to adding 1,359 subscribers in the previous quarter. As of March 31, 2005, the Company had a total of 30,152 subscribers, compared to 26,097 subscribers as of December 31, 2004 and 14,259 subscribers one year ago on March 31, 2004. In addition to the 30,152 billable subscribers reported as of March 31, 2005, there are additional units "under contract" in both existing and newly constructed properties that the Company will automatically recognize as "billable" subscribers as the contractual "phase in" or "move in" schedules relating to these properties mature. The Company will provide further detail on this subject when it reports its second fiscal quarter earnings.
The Company reports a continued and substantial increase in the size of its backlog during the quarter. As of March 31, 2005, the Company had a backlog of approximately 152,000 units, as compared to December 31, 2004 when the Company's backlog was approximately 129,000 units. One year ago, on March 31, 2004, the Company's backlog was approximately 72,000 units. Despite the Company's Southeast and Midwest offices being in operation less than one year, their respective backlogs out of the total 152,409 units were 33,274 units and 39,821 units as of March 31, 2005. The Company's well-established Northeast region had the largest backlog of 79,314 units.
The Company's work-in-progress ("WIP") for the quarter continued to expand with 34,261 units at some stage in the construction process, compared to 26,819 units in construction as of December 31, 2004 and only 5,524 units in construction one year ago on March 31, 2004. The number of units that were added to WIP during the quarter ended March 31, 2005 were 12,188 and the number of units that became fully constructed and moved out of WIP during the quarter were 4,746. The Company is still increasing its resources devoted to moving more units more quickly through the construction phase.
As part of the Company's commitment to expanding its technical resources and to assist the Company in its planning and implementation of new broadband services, Mr. Richard DiBello has joined the Company as its new Director of Broadband Services. Mr. DiBello's responsibilities at the Company include the design and build of a state-of-the-art network operations center and the managing and implementation of IP delivery systems such as high-speed Internet access and VoIP. Previously, he was a Director at Everest Broadband Networks where he successfully managed and installed IP networks in 350 commercial buildings in the United States and Canada. Prior to Everest Broadband, he was President of The Automation Group, where he established an ISP and pioneered the design and implementation of residential high-speed Internet access in multi-dwelling buildings. He orchestrated the first residential installation of high-speed Internet access using ADSL technology in New York. In addition to Mr. DiBello, the Company increased it full time employees to 87 as of March 31, 2005, as compared to 71 as of December 31, 2004.
The Company expects to file its quarterly report on Form 10-QSB for the quarter ended March 31, 2005 with the Securities and Exchange Commission on or before May 13, 2005.
About MDU: MDU Communications International, Inc. (OTCBB:MDTV) is a leading provider of premium communication/information services, including digital satellite television and high-speed (broadband) Internet services, exclusively to the United States multi-dwelling unit (MDU) marketplace - estimated to include 26 million residences. Through its wholly owned subsidiary, MDU Communications (USA) Inc., MDU Communications delivers DIRECTV(R) digital satellite television services and high-speed (broadband) Internet systems and is committed to delivering the next generation of interactive communication services to MDU residents. For additional information, please see www.mduc.com or contact Investor Relations.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements relating to subscriber growth and implementation of new programs and developments of the Company. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements, including, but not limited to, efforts on behalf of the Company to finalize and deploy such programs and technology, bring to fruition strategic alliances, fluctuations in operating results and operating plans, deployment of new subscribers, market forces, supplier negotiations and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's 10-KSB for year ended September 30, 2004, filed on or about December 29, 2004.
The Company's filings, including current financial reports, can be accessed through the EDGAR database at www.sec.gov.
MDU Communications International, Inc. (OTC Bulletin Board:MDTV)
