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KeyOn Investor Conference Call with CEO Jonathan Snyder, March 8, 2010 at 4:15 Eastern

Original Air Date and Time: Thursday, March 8, 2010, 4:15 pm Eastern

Click here to listen to the replay


News Summary

July 22, 2010: KeyOn and Alvarion® Launch 4G Wireless Network in Southern Nevada

July 7, 2010: KeyOn Completes Ninth Acquisition

June 2, 2010: KeyOn Completes Purchase of Dynamic Broadband Wireless Assets

May 17, 2010: KeyOn Reports First Quarter 2010 Results

May 4, 2010: KeyOn Announces Acquisition of Network Assets in Iowa and Minnesota Increasing Revenues by Nearly 30% on an Annualized Basis

April 13, 2010: KeyOn Reports 2009 Annual Results

April 6, 2010: KeyOn Closes Third Acquisition under Rural UniFi Program

March 30, 2010: KeyOn Files Applications under Round Two of the American Recovery and Reinvestment Act of 2009

March 3, 2010: KeyOn Provides Update on Broadband Stimulus Applications and Announces Conference Call To Provide Further Detail

February 9, 2010: KeyOn Closes Second Acquisition under Rural UniFi Program

December 22, 2009: KeyOn Announces Two Signed Agreements Under Acquisition Program

December 17, 2009: KeyOn Provides an Update on Roll-out of Advanced Billing and Customer Operations Platform

December 7, 2009: KeyOn Closes First Acquisition Under its Rural UniFi Program

December 1, 2009: KeyOn Presenting at WiMAX Forum Congress Americas '09

November 17, 2009: KeyOn Reports Third Quarter 2009 Results

November 9, 2009: KeyOn Communications Holdings to Host Investor Conference Call

September 29, 2009: KeyOn Introduces Google Apps Communications Tools to its Wireless Subscriber Base

September 9, 2009: KeyOn Launches Aggressive Acquisition Initiative for Wireless Broadband Companies

September 2, 2009: KeyOn Continues to Improve its Balance Sheet with Note Conversion

August 19, 2009: KeyOn Files Applications for $150 Million of Federal Broadband Stimulus Funds under the American Recovery and Reinvestment Act of 2009

July 15, 2009: REPLAY of KeyOn Investor Conference Call with CEO Jonathan Snyder

July 9, 2009: KeyOn Communications Holdings to Host Investor Conference Call

June 19, 2009: KeyOn Further Strengthens Balance Sheet with Loan Extension and Modification of Terms

June 10, 2009: KeyOn Set to Implement LogiSense’s Billing and OSS Management Tools

June 1, 2009: KeyOn Engages Premier Telecom Consultancy

May 15, 2009: KeyOn Reports First Quarter 2009 Results

April 15, 2009: KeyOn Reports 2008 Record Revenue and Positive EBITDA in Q4 2008

 


View all KeyOn SEC filings


KeyOn and Alvarion® Launch 4G Wireless Network in Southern Nevada

Companies extend advanced wireless broadband services to small towns and rural areas

PAHRUMP, NV and SUNNYVALE, CA (July 22, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, and Alvarion Ltd. (NASDAQ:ALVR) the world’s leading provider of 4G networks in the Broadband Wireless Access (BWA) market announced today that they have deployed a next-generation, 4G wireless data network in Pahrump, Nevada using Alvarion’s BreezeMAX® Extreme WiMAX gear in the 3.65 GHz spectrum band where KeyOn holds a nationwide, non-exclusive license.

“Our customers are increasingly looking for more services from us, including a bundled VoIP product and higher data rates. One of the primary goals of the 3.65 GHz band was to facilitate serving rural markets with a wider array of advanced wireless services. It is a band that has a large swath of spectrum, a favorable regulatory regime and a growing eco-system of 4G gear,” said Jonathan Snyder, Chief Executive Officer for KeyOn Communications. “Broadening our service offering and building on existing network footprint, which includes 5 newly acquired businesses in the past 6 months, KeyOn is delighted to break new ground in advancing the potential for WiMAX deployment in this spectrum.”

“There is a great demand for broadband services throughout US especially in rural and underserved areas. We are excited to partner with KeyOn to bring new 4G services to Pahrump, Nevada”, said Eran Gorev, president and CEO of Alvarion. “Our industry leading solution provides an optimized business case at 3.65 GHz frequency band while enabling quality broadband services.”

Jonathan Snyder continued, “We believe that Alvarion offers the industry’s most complete and technologically advanced range of WiMAX products in the 3.65 GHz band that enable superb connection speed and voice quality. In addition, with future upgrades, the network platform also enables nomadic broadband wireless services.”

KeyOn has deployed Alvarion’s BreezeMAX Extreme gear providing coverage to over 15,000 households in Pahrump, Nevada, a town 60 miles west of Las Vegas. KeyOn has already begun marketing the services to its customers, augmenting its product service that currently includes fixed wireless data and satellite video services. In connection with this deployment, KeyOn is offering VoIP services on the 3.65 GHz WiMAX platform to provide an integrated voice and data solution to its customers.

KeyOn intends to roll-out 4G markets as an overlay in existing markets and in new markets in connection with its applications under the broadband portions of the American Recovery and Reinvestment Act of 2009. KeyOn has applied for $374 million in the second round of the Broadband Initiatives Program under the Rural Utilities Service and the Department of Agriculture.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 12 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 55,000 square miles and cover over 2,800,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

About Alvarion®
Alvarion (NASDAQ:ALVR) is a global leader in 4G wireless communications with the industry’s most extensive customer base with hundreds of commercial WiMAX deployments. Alvarion’s industry leading solutions enable true open 4G and vertical applications for service providers and enterprises. Through an OPEN network strategy, superior IP and OFDMA know-how, and ability to deploy large scale end-to-end turnkey networks, Alvarion is delivering the true 4G broadband experience today (www.alvarion.com).

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: potential impact on our business of the current global recession, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in WiMAX license allocation in certain countries; the failure of the market for WIMAX products to develop as anticipated; potential impact on our business of the current global recession;, Alvarion’s inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission.
Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission, which this press release will be a part of.

You may request Alvarion's future press releases or a complete Investor Kit by contacting Kika Stayerman, kika.stayerman@alvarion.com or +972.3.767.4159.

Alvarion®, its logo and all names, product and service names referenced herein are either registered trademarks, trademarks, trade names or service marks of Alvarion Ltd.

All other names are or may be the trademarks of their respective owners.

“WiMAX Forum” is a registered trademark of the WiMAX Forum. “WiMAX,” the WiMAX Forum logo, “WiMAX Forum Certified” and the WiMAX Forum Certified logo are trademarks of the WiMAX Forum.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K/A filed on April 16, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contacts:

KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

Alvarion Ltd.
Investor Contacts:
Efrat Makov, CFO
+972.3.645.6252
+1.650.314.2652
efrat.makov@alvarion.com

Claudia Gatlin
+1.212.830.9080
claudia.gatlin@alvarion.com
Press Contacts:
Christine Buzzetta
+1.972.341.2530
cbuzzetta@golinharris.com



KeyOn Completes Ninth Acquisition

Acquisition of Illinois wireless broadband assets extends footprint and adds immediate positive EBITDA

OMAHA, NE (July 7, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today it has completed the acquisition of substantially all of the wireless broadband assets of TS Wireless, a division of Technology Specialists Group, Inc., increasing the company’s already substantial network footprint in Illinois.

The TS Wireless acquisition was completed as part of KeyOn’s Rural UniFi program. Rural UniFi is a strategic acquisition initiative designed for independent wireless broadband companies to realize immediate value from their networks by merging with KeyOn. The acquisition of TS Wireless is KeyOn’s ninth.

Jason Lazar, KeyOn’s Vice President of Corporate Development and General Counsel, stated, “The purchase of TS Wireless will not only increase our footprint in Illinois, but will add to our top-line revenues and contribute positive EBITDA immediately. There are several more acquisition opportunities in Illinois that we expect will complement our existing network and allow us to realize further economies of scale. Finally, this particular acquisition demonstrates that KeyOn can swiftly and effectively integrate wireless companies and begin realizing operational efficiencies.”

Interested wireless broadband operators can visit KeyOn’s unique initiative through the company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 12 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 55,000 square miles and cover over 2,800,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K/A filed on April 16, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

 


 

KeyOn Completes Purchase of Dynamic Broadband Wireless Assets

Previously announced acquisition of wireless broadband assets in Iowa and Minnesota will increase revenues by nearly 30% on an annualized basis

OMAHA, NE (June 2, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today it has completed its acquisition of substantially all of the wireless broadband assets of Dynamic Broadband Corporation which increases the company’s network footprint in Iowa and initiates coverage in Minnesota, KeyOn’s twelfth state with operations. The assets were acquired for a combination of common shares of KeyOn and the assumption and repayment of certain liabilities.

The Dynamic Broadband acquisition was completed under KeyOn’s Rural UniFi program. Rural UniFi is a strategic acquisition initiative designed for independent wireless broadband companies to realize immediate value from their networks by merging with KeyOn. The acquisition of Dynamic Broadband is KeyOn’s eighth acquisition.

Interested wireless broadband operators can visit KeyOn’s unique initiative through the company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 12 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 55,000 square miles and cover over 2,800,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K/A filed on April 16, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

 

KeyOn Reports First Quarter 2010 Results

OMAHA, NE (May 17, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, reported its financial results for the quarter ending March 31, 2010.

Jonathan Snyder, President and CEO of KeyOn Communications, commented, “During the first quarter of 2010, we completed our second round federal stimulus applications, closed two strategic acquisitions through our Rural UniFi initiative and continued our efforts to increase the organic growth of our subscriber base. Our first quarter results appear worse due to one-time expenses associated with our stimulus applications, Rural UniFi and some non-cash compensation items. When these expenses are removed, our operating margin for the quarter would have decreased by only 16 percentage points.”

Snyder continued, “While we are not happy about an overall decrease in operating margin, management realizes it results from a subscriber reduction over the course of the previous year which is directly due to the corresponding limited marketing spend. In the first quarter, we have already seen a material uptick in subscriber additions and realized some revenues from our completed acquisitions; we will experience the full financial effects of the increasing revenue trend during the second quarter. Overall, we are pleased with the many first quarter financial and operational milestones that we anticipate building upon throughout the year.”

2010 First Quarter Consolidated Results
For the first quarter ended March 31, 2010, the Company reported revenue of $1,594,959, a decrease of approximately 15%, as compared to $1,866,172 for the first quarter ended March 31, 2009. This decrease was the result of a decline in our customer base. While customer disconnects continue to remain stable, marketing expenses have increased as the company is gradually turning the net subscriber losses to positive gains.

The operating loss, which included non-cash stock-based compensation expense and Round Two ARRA application expenses for professional fees of $1.2 million for the first quarter ended March 31, 2010, was $1.9 million, as compared to an operating loss of $0.8 million for the quarter ended March 31, 2009, which included non-cash based stock compensation and professional fees of $0.2 million.

The Company reported a net loss of $2.0 million, or $0.09 loss per common share, for the first quarter ended March 31, 2010, compared to a net loss of $1.0 million, or $0.12 loss per common share, for the first quarter ended March 31, 2009.

Adjusted EBITDA for the first quarter ended March 31, 2010, was negative $904,608 compared to $64,714 in the prior first quarter of 2009, a decline of $969,322. By removing expenses related to the Company’s federal broadband stimulus applications under ARRA, adjusted EBITDA for the first quarter ended March 31, 2010, was negative $280,423 as compared to $64,714 for the quarter ended March 31, 2009.

Outlook
Jonathan Snyder continued, “Our EBITDA loss widened in the first quarter as we spent substantial resources in furtherance of our Round Two ARRA applications. We also increased our marketing expenses in order to grow our subscriber base after a year of net subscriber decline. However, we anticipate that negative EBITDA will be offset in the coming quarters by the continued accretive acquisitions we expect to consummate under Rural UnFi. We have submitted applications for stimulus funds totaling $374 million, have a growing pipeline of acquisitions and sufficient capital to execute our business plan. We believe that the achievements of the first quarter will allow us to return to a positive EBITDA position in 2010.”

Click here to download the table

 

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, and broadband stimulus application expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K/A filed on April 16, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 


 

KeyOn Announces Acquisition of Network Assets in Iowa and Minnesota Increasing Revenues by Nearly 30% on an Annualized Basis

The acquisition represents the fourth under KeyOn’s Rural UniFi program, its third in 2010, and eighth acquisition overall

OMAHA, NE (May 4, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced the signing of an agreement to acquire, for a combination of stock and assumption of debt, substantially all of the wireless broadband assets of Dynamic Broadband Corporation, a wireless internet service provider with operations in Iowa and Minnesota adjacent to KeyOn’s current Iowa markets. As with prior acquisitions, the proximity of the network and other synergies are intended to allow the company to efficiently integrate operations, resulting in immediate expense savings.

The wireless broadband assets, which exclude a managed services business known as “X-Wires”, generate approximately $1.9 in annualized revenues an amount equal to approximately 28% of KeyOn’s revenue in fiscal year 2009. Additionally, as a result of cost synergies, KeyOn believes that the acquisition will be immediately accretive to earnings generating over $700,000 of annualized EBITDA. KeyOn management expects that the acquisition will generate positive pro forma EBITDA for the Company and significant accretion on an EBITDA per share basis which will be announced at closing.

Jason Lazar, KeyOn’s Vice President of Corporate Development and General Counsel, stated, “Dynamic Broadband’s business will materially increase our top-line revenues and will contribute meaningfully to EBITDA. Rural UniFi is one of our core growth initiatives and we are excited about not only increasing our footprint in Iowa, but also initiating coverage in Minnesota - our twelfth state.”

KeyOn’s Rural UniFi program is a strategic acquisition initiative designed for independent wireless broadband companies that allows those operators to realize immediate value from their networks by joining KeyOn. The Dynamic Broadband acquisition is expected to close in the second quarter of 2010 and will be KeyOn’s eighth completed acquisition.

Because of the lack of available broadband options, rural markets are often served by independent wireless operators who provide valuable broadband services to their communities. Estimates put the number of independent wireless broadband companies at over 2,000, making the industry quite fragmented. Historically, without access to capital, these companies can experience growth challenges, as well as inefficient cost structures associated with smaller customer bases. These factors have contributed to the fact that rural markets lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 46% versus 67% broadband penetration for suburban and urban, respectively).

“We’re very pleased to be able to participate in KeyOn’s Rural UniFi initiative and believe that the addition of the Dynamic Broadband networks and subscribers will help propel KeyOn to further successes in delivering valuable broadband services in rural markets,” commented Mike Brown, CEO of Dynamic Broadband. “The ultimate consummation of this transaction will be positive for Dynamic Broadband’s customers and key stakeholders.”

Interested wireless broadband operators can visit KeyOn’s unique initiative through the company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.
Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and are not recognized measures under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment and non-cash stock based compensation expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on April 13, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 


 

KeyOn Reports 2009 Annual Results

OMAHA, NE (April 13, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, reported its financial results for the year ended December 31, 2009.

Jonathan Snyder, President and CEO of KeyOn Communications, commented, “In the face of challenging economic times and a difficult capital market environment, we finished the year slightly down in revenues, about 10%, but our adjusted EBITDA (before stimulus application expenses) improved 40% year over year. In addition, during 2009, KeyOn achieved other milestones covering both financial and operational areas. We announced the acquisition of three companies in the last several months and, in February of 2010, raised $15 million through a secured convertible promissory note. This financing will provide the company with sufficient capital to pursue growth and other strategic initiatives in 2010.”

2009 Annual Consolidated Results
For the year ended December 31, 2009, the Company reported revenue of $6,898,232, a decrease of approximately 11%, as compared to $7,793,740 for the year ended December 31, 2008. This decrease was the result of a decline in our customer base. While customer disconnects have remained stable, limited marketing dollars were spent to acquire new subscribers until the fourth quarter of 2009 during which the company began to increase marketing expenses in effort to restart subscriber growth.

The operating loss, which included non-cash stock-based compensation expense of $0.7 million for the year ended December 31, 2009, was $4.7 million for the quarter ended December 31, 2009, as compared to an operating loss of $7.2 million for the quarter ended December 31, 2008, which included non-cash based stock compensation of $3.3 million.

The Company reported a net loss of $6.6 million, or $0.49 loss per common share, for the year ended December 31, 2009, compared to a net loss of $8.1 million, or $0.96 loss per common share, for the year ended December 31, 2008, a net loss improvement of 18%.

Adjusted EBITDA for the year ended December 31, 2009, was negative $903,997 compared to negative $819,329 in the prior year, a decline of $84,668. By removing expenses related to the Company’s federal broadband stimulus applications under ARRA, adjusted EBITDA for the year ended December 31, 2009, was negative $494,544 as compared to negative $819,329, an improvement of 40%.

Outlook
Jonathan Snyder continued, “Our EBITDA loss widened in the fourth quarter as we increased our marketing expenses to acquire new customers in order to grow our subscriber base again. This anticipated growth, combined with the recent announcements of our acquisitions under the Rural UniFi program, the $15 million capital raise, and the completion of our Round 2 ARRA applications, cause us to believe that KeyOn is well-positioned to have a very promising 2010 .”

Click to download Consolidated Statement of Operations

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, and broadband stimulus application expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on April 13, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 


 

KeyOn Closes Third Acquisition under Rural UniFi Program
KeyOn’s seventh acquisition comprises network assets in Illinois

OMAHA, NE (April 6, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced closing the acquisition of substantially all of the assets of RidgeviewTel’s Illinois nework. RidgeviewTel’s Illinois network assets and wireless broadband subscribers are adjacent to KeyOn’s existing Illinois markets. As with prior acquisitions, the proximity of the network and other synergies are intended to allow the company to efficiently integrate operations, resulting in immediate expense savings.

Jason Lazar, KeyOn’s Vice President of Corporate Development and General Counsel, stated, “The RVT network is a great addition to our network footprint in Illinois. Not only does it add to our subscriber base, but also affords us the opportunity to utilize RVT’s sophisticated network management software currently operating the network. Rural UniFi is one of our core growth initiatives and we remain in active discussions with several qualified candidates.” KeyOn anticipates generating over $150,000 in annualized revenue and deriving EBITDA margins of approximately 50% in connection with the acquired assets.

Because of the lack of available broadband options, rural markets are often served by independent wireless operators who provide valuable broadband services to their communities. Estimates put the number of independent wireless broadband companies at over 2,000, making the industry quite fragmented. Historically, without access to capital, these companies can experience growth challenges, as well as inefficient cost structures associated with smaller customer bases. These factors have contributed to the fact that rural markets lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 46% versus 67% broadband penetration for suburban and urban, respectively).

“We are pleased to have completed this transaction and believe it is good for RidgeviewTel, KeyOn and the customers served in these markets.” commented Vince Jordan, President and CEO of RidgeviewTel. “We appreciate KeyOn’s strategy for building scale in the rural wireless broadband industry with Rural UniFi and look forward to participating in KeyOn’s success.”

Interested wireless broadband operators can visit KeyOn’s unique initiative through the company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and are not recognized measures under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment and non-cash stock based compensation expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

 


 

KeyOn Files Applications under Round Two of the American Recovery and Reinvestment Act of 2009

OMAHA, NE (March 30, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO - News), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today it has submitted multiple applications for $360 million of federal stimulus funding in Round Two of the Broadband Initiatives Program (BIP) which is part of the American Recovery and Reinvestment Act of 2009 (ARRA).

Commenting on the submissions, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “Over the past few months, KeyOn’s management team has continued to focus on ARRA, as it represents a significant growth opportunity for our company.”

Provided it is successful in its applications, KeyOn plans to contribute up to approximately $163 million of outside capital to some of the smallest communities in the United States to ensure the sustainability of its projects.

Of the $7.2 billion allocated for broadband infrastructure in the ARRA, $2.5 billion is administered by the Rural Utilities Service (RUS) for specific deployment of broadband networks and related infrastructure in eligible rural communities across the U.S. KeyOn has submitted its applications in the second and final round for “last-mile” infrastructure projects where $1.7 billion has been allocated by the RUS for these types of projects (as opposed to “middle-mile” projects). If successful under this program, KeyOn’s WiMAX networks could potentially expand to cover as many as 22 states and provide wireless broadband access to as many as 8.2 million people.

KeyOn’s proposed last-mile network design takes advantage of the latest fourth generation (4G) WiMAX technology and the newly regulated 3.65GHz spectrum, for which it holds a nationwide license. As a result, KeyOn delivers robust, reliable and secure broadband services at a cost per household passed that is unmatched by competing methodologies in terms of economic efficiency

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its proposed participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.


Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 


 

 

KeyOn Provides Update on Broadband Stimulus Applications and Announces Conference Call To Provide Further Detail

Company to discuss the results of its stimulus applications under the American Recovery and Reinvestment Act of 2009 (ARRA) and future plans under Round Two of this program

OMAHA, NE (March 3, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO) (http://www.keyon.com), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today that it was notified by the Rural Utilities Service (RUS) that its applications under the Broadband Initiatives Program (BIP) of the American Recovery and Reinvestment Act of 2009 were not awarded. Despite the fact that all eleven of KeyOn’s applications had advanced to the due diligence phase in Round One, the RUS did not advance any of the Company’s eleven applications to an award.

The Company also announced that it will host a conference call on March 8, 2010 at 4:15pm EST during which KeyOn’s CEO, Jonathan Snyder, will provide an update on the Round One process and announce its intentions for Round Two of the BIP. There will be a Q & A session at the end of the presentation.

The details of the investor presentation are as follows:

Date: March 8, 2010

Time: 4:15 pm Eastern / 1:15 pm Pacific

Click here to listen to the replay

 

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 


 

KeyOn Closes Second Acquisition under Rural UniFi Program
KeyOn makes another accretive acquisition of network assets based in Ottumwa, IA

OMAHA, NE (February 9, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced closing the acquisition of substantially all of the assets of Affinity Wireless Services, LLC. Affinity’s network assets and wireless broadband subscribers are located in southern Iowa, contiguous with a portion of KeyOn’s existing Iowa markets. As with prior acquisitions, the proximity of network footprint is intended to allow the company to efficiently integrate operations, resulting in immediate expense savings. The company expects the Affinity acquisition to deliver approximately $170,000 of pro forma annualized aggregate Adjusted EBITDA and approximately $1.20 of pro forma Adjusted EBITDA per share issued in connection with the transaction.

Since initiating its Rural UniFi Program, KeyOn has already announced three transactions under this program. The first transaction was completed in December 2009. Affinity is the Company’s second acquisition and the third acquisition is the previously announced purchase of RidgeView Tel’s Illinois assets which is expected to close during the first quarter of 2010.

Jason Lazar, KeyOn’s Vice President of Corporate Development and General Counsel, stated, “We are building a solid business unit around Rural UniFi. We have been getting an enthusiastic response from potential acquisition candidates who want to be part of a bigger opportunity. Last year, KeyOn disclosed that we were talking to acquisitions totaling over 40,000 subscribers; we are making progress in those efforts as we continue our work on the other strategic priorities of the company.”

Because of the lack of available broadband options, rural markets are often served by independent wireless operators who provide valuable broadband services to their communities. Estimates put the number of independent wireless broadband companies at over 2,000, making the industry quite fragmented. Historically, without access to capital, these companies can experience growth challenges, as well as inefficient cost structures associated with smaller customer bases. These factors have contributed to the fact that rural markets lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 46% versus 67% broadband penetration for suburban and urban, respectively).

“I am excited about consummating this agreement with KeyOn Communications,” commented Josh Goudy, previous owner of Affinity. “KeyOn has been fantastic to work with through this process and I believe they’re the ideal company not only to take care of the existing customer base, but also to grow it as well. Through KeyOn’s ability to bring greater scale to the industry and as it continues its growth, the customers in southern Iowa will have enhanced access to broadband and advanced broadband technologies.”

Interested wireless broadband operators can visit KeyOn’s unique initiative through the company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and are not recognized measures under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment and non-cash stock based compensation expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

 

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

KeyOn Announces Two Signed Agreements Under Acquisition Program
KeyOn agrees to acquire the 2nd and 3rd wireless broadband companies under Rural UniFi in Iowa and Illinois

OMAHA, NE (December 22, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced the signing of agreements to acquire the wireless broadband assets of Affinity Wireless Solutions, LLC in Iowa and certain RidgeviewTel, LLC markets in Illinois. These acquisitions when closed will make three acquisitions under KeyOn’s Rural UniFi program, a comprehensive acquisition initiative announced in September 2009.

Jason Lazar, KeyOn’s Vice President of Corporate Development and General Counsel, stated, “Both companies are excellently run and the networks are in great shape. Affinity’s networks complement ours in southern Iowa and RidgeviewTel’s adds to our existing strong presence in Illinois. We are pleased that Rural UniFi has been viewed favorably by similarly situated operators, as it provides wireless broadband entrepreneurs with an opportunity to derive the benefits of size and scale.”

The Company anticipates that these acquisitions will provide pro forma revenues of approximately $450,000 and $225,000 of annualized EBITDA.

Earlier this month, KeyOn announced it had acquired the wireless broadband assets formerly doing business as SkyWi, Inc. The acquisitions of Affinity and the RidgeviewTel markets have been similarly structured as asset purchases. Both acquisitions are expected to close at the beginning of 2010. The Company believes that under its ownership, for a full 12 months of operations, these acquisitions, including the results of SkyWi, should contribute approximately $750,000 in revenue and $375,000 million in EBITDA.

Jonathan Snyder, KeyOn’s CEO, commented on the acquisitions, “We are talking to many qualified and competent operators across the eleven states in which we operate. These companies provide necessary broadband services in and around communities that are typically unserved or underserved by traditional providers of broadband. The rural wireless broadband industry is very fragmented with over 2,000 independent wireless broadband companies in the US. Consequently, we believe that there are many acquisition opportunities that can be completed fairly quickly and, importantly, on an accretive basis. Our scalable billing, customer management and network management platforms allow us to integrate these assets and derive immediate cost-savings while spreading static fixed costs over a lager subscriber base.”

Interested wireless broadband operators can visit KeyOn’s unique initiative through the Company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings, Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures
This press release includes disclosure regarding “EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures. “EBITDA” is defined as earnings or loss from operations adjusted for depreciation and amortization. EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 


 

KeyOn Provides an Update on Roll-out of Advanced Billing and Customer Operations Platform
KeyOn is substantially complete with the implementation of Engage IP including the subscribers of its most recent acquisition

OMAHA, NE (December 17, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO - News), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States announced today that it has substantially completed the implementation of the Company’s new billing, operations support/customer resource management (OSS/CRM) system. KeyOn is using EngageIP, a customized wireless software platform from LogiSense Corporation, a leading provider of billing, OSS and business process management solutions for telecommunication and broadband service providers.

Commenting on the implementation progress, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “We are about 70% complete with the full implementation. Since our announcement in June, we performed rigorous testing, migrated all billing records for our subscribers and are now seamlessly using it. We are pleased to report that EngageIP is now handling about most of our customer base with the balance of our subscribers expected to be integrated in the next 60 to 90 days.”

The Company migrated to a new customer operations platform to prepare for the expected surge in subscribers through its two key strategic initiatives: (1) Rural UniFi, an acquisition program focused on rural wireless broadband operators, and (2) participation in the American Recovery and Reinvestment Act of 2009 broadband stimulus program in which the company submitted applications totaling $150 million.

EngageIP provides KeyOn with secure, end-to-end bill processing, order management and customer information management for its wireless broadband and related services. KeyOn commenced billing on EngageIP while continuing to bill on previous billing in October 2009 and, after a successful parallel run in October, commenced billing exclusively on EngageIP in November 2009.

Snyder continued, “Importantly, our first acquisition under Rural UniFi, SkyWi, was linked into EngageIP during the closing of that transaction and the very first bill run, it performed these functions for the former SkyWi customer base. This demonstrates our ability to add disparate subscriber bases into our more robust and scalable back-office system. The transition of these subscribers onto our systems is an important element in our ability to derive cost efficiencies, and hence higher margins for acquired properties.”

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTCBB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. More information on KeyOn can be found at www.keyon.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

 


 

 

KeyOn Closes First Acquisition Under its Rural UniFi Program
KeyOn acquires assets of the company operating as SkyWi, Inc. to complement its network footprint in North Central Texas

OMAHA, NE (December 7, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced the closing of its acquisition of the assets of SkyWi, Inc. (“SkyWi”) which include network assets and wireless broadband subscribers located in North Central Texas. This acquisition is the company’s first under its Rural UniFi program, a comprehensive acquisition initiative announced in September 2009.

“As we complete the first acquisition under the Rural UniFi program, we have begun executing our vision to create a sizable, next-generation rural communications company. Operating in eleven states provides us with the geographic reach that exposes us to many opportunities where we can leverage our existing network footprint and field personnel to generate cost-savings and subscriber growth. SkyWi is a great example of how we are able to derive synergies from adjacent networks. SkyWi’s subscriber base and revenues will partially offset losses in those areas we experienced due to the market environment in 2009. Management anticipates that SkyWi will contribute over $300,000 of revenues and approximately $150,000 in EBITDA in 2010”, commented Jonathan Snyder, Chief Executive Officer of KeyOn.

Because of the lack of available broadband options, rural markets are often served by independent wireless broadband operators who provide valuable broadband services to their communities. Estimates put the number of independent wireless broadband companies at over 2,000, making the industry quite fragmented. Historically, without available capital, these companies can experience growth challenges as well as inefficient cost structures associated with smaller customer bases. These factors have contributed to the fact that rural markets lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 46% versus 67% broadband penetration for suburban and urban, respectively).

Snyder continued, “We believe that combining similarly situated operators will bring greater scale for the industry resulting in better purchasing power for KeyOn and also an ability to attract significant capital and top-tier technology partners to rural communities. In this way, we can both accelerate rural broadband adoption and expedite the delivery of next-generation services. KeyOn is excited to be at the forefront on this consolidation effort and we expect to announce many more participants in the initiative.”

Interested wireless broadband operators can visit KeyOn’s unique initiative through the Company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

 


 

KeyOn Presenting at WiMAX Forum Congress Americas '09

Jason Lazar, KeyOn’s VP of Corporate Development and General Counsel to Speak on Benefits of WiMAX

OMAHA, NE (December 1, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO) (http://www.keyon.com), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today that its Vice President of Corporate Development and General Counsel, Jason Lazar, will present and participate in a panel discussion at the WiMAX Forum Congress Americas '09 on December 2, 2009 in Fort Lauderdale, FL.

Mr. Lazar will make a presentation on the sustainability of WiMAX to serve previously unviable areas. He will also serve on a panel discussion on the impact of the broadband portions of the American Recovery and Reinvestment Act of 2009 (ARRA) on WiMAX deployments in the U.S. ARRA has allocated $7.2 billion to broadband networks and related infrastructure in rural, unserved and underserved communities across the U.S Joining Mr. Lazar on the panel will be Mr. Paul Sinderbrand, Partner, Wilkinson, Barker, Knauer; David Villano, Assistant Administrator, Telecommunications Program, RUS/USDA; and Randall Schwartz, Principal Consultant, Wireless 20/20.

Commenting on the announcement, Mr. Lazar stated, “This is a great time to be in the wireless industry and I appreciate the opportunity to participate in this important conference. I look forward to being able to discuss the benefits and capital efficiency of WiMAX in rural markets and collaborate with significant players in our industry.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:

KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
http://www.keyon.com/

- or -

Investor Relations Contact:

Liviakis Financial Communications, Inc.
John Liviakis, President
415-389-4670
john@liviakis.com
http://www.liviakis.com/

 


 

 

KeyOn Reports Third Quarter 2009 Results

OMAHA, NE (November 17, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, reported its financial results for the quarter ended September 30, 2009.

“Our efforts to control expenses and improve operating efficiencies in order to generate positive EBITDA continued into the third quarter. While we reported negative EBITDA for the first time in three consecutive quarters, our third quarter was close to EBITDA positive after adjusting for non-cash items and some one-time expenses. In particular, third quarter results from operations include over $370,000 of expenses incurred in connection with KeyOn’s $150 million stimulus applications under the American Recovery and Reinvestment Act of 2009 (ARRA) ”, commented Jonathan Snyder, President and CEO of KeyOn Communications. “In this quarter, the capital markets afforded us with the opportunity to think about growth and strategic initiatives again. With the additional equity capital we have raised, our team completed detailed stimulus applications as well as initiating acquisition efforts of similarly situated operators through our Rural UNIFi program. Finally, we began expanded marketing efforts in order to grow our entire customer base – within our existing footprint and in any acquired networks.”

 

2009 Third Quarter Consolidated Results
For the third quarter ended September 30, 2009, the Company reported revenue of $1,672,730, a decrease of approximately 11.0%, as compared to $1,878,737 for the third quarter ended September 30, 2008. This decrease is consistent with the Company’s previous cost restructuring plan focused on reducing overall marketing and advertising costs. While customer disconnects have remained stable, the absence of marketing to acquire new subscribers has resulted in an overall decline in the customer base.

The operating loss, which included non-cash stock-based compensation expense of $0.5 million for the quarter ended September 30, 2009, was $1.4 million for the quarter ended September 30, 2009, as compared to an operating loss of $1.3 million for the quarter ended September 30, 2008, which included non-cash based stock compensation of $0.5 million.

The Company reported a net loss of $2.9 million, or $0.20 loss per common share, for the quarter ended September 30, 2009, compared to a net loss of $1.3 million, or $0.18 loss per common share, for the quarter ended September 30, 2008, an increase of 95%. However, the results for September 2009 quarter included interest expense of $1.5 million which includes $1.2 million for a beneficial conversion (a non-cash item) related to the conversion of the secured subordinated notes that matured on August 31, 2009.

Adjusted EBITDA for the quarter ended September 30, 2009 was negative $10,156 compared to negative $66,328 in the third quarter in the prior year, a decrease of $56,172, or 85%.

Annette Eggert, KeyOn’s CFO, stated, “We have continued to show financial strength by significantly improving our working capital position – 49% on a quarter over quarter basis. In addition to balance sheet improvements, our focused cost reduction initiatives have provided a solid operating foundation for us to move forward with our current business strategy designed for greater growth and scale.”

 

Prior Quarters
The company also restated results for the first and second quarters of 2009. These changes were non-cash adjustments resulting in an increase to non-cash stock compensation expense in payroll of $648,155 and a decrease in non-cash stock compensation in professional fees of $66,250, a net increase in total operating expenses of $581,905 for the nine months ended September 30, 2009. The restatement resulted in Net Loss changes of $648,155, ($92,750) and $26,500, for the first quarter of 2009, second quarter of 2009, and third quarter 2009, respectively.

 

Outlook
Jonathan Snyder continued, “Our revenues are down slightly quarter over quarter which is consistent with our lack of marketing over the past year. However, we have made investments in restarting growth as well as in new products for our customer base. With the recent announcement of our partnership with Google, a renewed focus on acquisitions through our Rural UNIFi initiative and efficiencies gained in operations, KeyOn is in an ideal position to take advantage of our leadership position in the industry.”

Click chart to see full version

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.
Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, and broadband stimulus application expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

 

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

KeyOn Communications Holdings to Host Investor Conference Call

Company to provide overview of Rural UniFi, the Company’s acquisition program, and status of transactions as well as a general corporate update

OMAHA, NE (November 9, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO) (http://www.keyon.com), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today it will host an investor conference call and webcast on Thursday, November 12, 2009 at 4:15 pm EDT.

KeyOn’s CEO, Jonathan Snyder, will provide an overview of the Company’s Rural UniFi initiative, a program designed to rapidly expand its subscriber base and network footprint through acquisitions. Management will discuss how it believes that KeyOn is ideally positioned to acquire and integrate wireless broadband companies covering areas that are contiguous to or near rural areas currently served by the Company. KeyOn has successfully integrated four previous acquisitions resulting in growth of its subscriber base and revenues while expanding EBITDA margins. In addition, a general corporate update will be provided.

The details of the investor presentation are as follows:

Original Air Date and Time: Thursday, November 12, 2009, 4:15 pm EDT
Click here to listen to the replay

 

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.

 

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:

KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
http://www.keyon.com/

- or -

Investor Relations Contact:

Liviakis Financial Communications, Inc.
John Liviakis, President
415-389-4670
john@liviakis.com
http://www.liviakis.com/

 

 

KeyOn Introduces Google Apps Communications Tools to its Wireless Subscriber Base

Subscribers will benefit from the wide range of new features and applications for their KeyOn broadband connection

OMAHA, NE (September 29, 2009) – KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today that it is bringing Google AppsTM Partner Edition to its wireless broadband subscribers. By offering Google Apps directly to its subscribers, KeyOn will provide direct access to Google's popular email and communications tools, such as Gmail which includes anti-spam and anti-virus protection, Google Docs collaboration tools, Google Calendar shared calendaring functionality, and Google Talk instant messaging which includes voice and video chat.

Commenting on teaming with Google, Rory Erchul, Vice President, Marketing of KeyOn stated, “We are extremely excited to have this mutually beneficial relationship. With our subscribers’ desire for advanced web-based tools, Google Apps represents a perfect complement to our robust broadband services. Google’s consumer-friendly applications with their rich feature-sets are ideal for our growing rural customer base.”

KeyOn subscribers will have the added benefit of accessing their KeyOn email, powered by Google, from any computer connected to the Internet. Google Apps is also available for iPhone and Blackberry devices giving customers increased mobility and productivity while on the go.

"We recognize that our core competency is providing broadband connectivity," continued Rory Erchul, "Google is a leader in creating an exciting and functional experience for Internet users. With the expected growth in our customer base through acquisitions and the proposed network expansion through our applications under the American Recovery and Reinvestment Act of 2009, we believe that Google Apps will deliver a better experience due to improved webmail functionality and features, productivity and collaboration tools, and document and calendar sharing capabilities."

KeyOn will coordinate with IKANO Communications, Inc., in the migration process to Google Apps Partner Edition which is expected to be completed in under 60 days. IKANO provides migration and support services to service providers seeking to upgrade and outsource mail and related communication services.

George Naspo, CEO of IKANO commented, "IKANO is committed to bringing the latest communications services to rural markets. Our relationship with KeyOn and Google is an important milestone in the transformation of wireless service providers to deliver cloud based tools for businesses and consumers."

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next-generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.

About IKANO Communications, Inc.
IKANO, founded in 1999, is a provider of IP solutions including email, Internet access, virtual private cloud hosting, billing and end user support. IKANO makes it easy for customers and service providers to maintain their unique brand while eliminating the hassle of maintaining servers, network contracts and call centers. IKANO provides Google Apps services and support for businesses and organizations. Headquartered in Salt Lake City, Utah, the company has offices in Los Angeles, Seattle, and Toronto. IKANO is backed by Insight Venture Partners and other investors. Companies interested in learning more about Google Apps Partner Edition with IKANO should contact googleleads@ikano.com, call (818) 350-2763, or visit http://partneredition.ikano.com. http://www.twitter.com/ikano.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

IKANO Company Contact:
IKANO Communications, Inc.
Douglas Pollei, 818-350-2763
VP Internet Strategy and Corporate Development
dpollei@ikano.com

KeyOn Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

 

 

 


KeyOn Launches Aggressive Acquisition Initiative for Wireless Broadband Companies
Rural UniFi initiative allows wireless broadband companies in rural markets to realize immediate value from their networks by joining KeyOn

OMAHA, NE (September 9, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO - News), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today that the company has launched an aggressive acquisition initiative, called Rural UniFi, designed to rapidly expand its subscriber base and network footprint. KeyOn already boasts a network covering 50,000 square miles in 11 states, making it ideally positioned to integrate wireless broadband companies in contiguous areas. The Company has successfully integrated four previous acquisitions resulting in growth of its subscriber base and revenues while expanding EBITDA margins.

Commenting on the initiative, Jonathan Snyder, President and CEO, stated, “We have been focused on growing broadband subscribers in rural markets for over seven years, having evolved from a single market operator to a company that is one of the largest providers of wireless broadband in the country. The rural wireless broadband industry is extremely fragmented, with very few companies realizing any economies of scale in their businesses. Considering the current lack of capital available in the market, the Rural UniFi initiative represents a way for wireless broadband companies to unlock the value of their networks. Our companies can share in the upside of a larger, scalable company while we leverage our existing systems, management experience and wide distribution network. Over the coming months, we expect to make several announcements about companies that have agreed to join the initiative.”

Because of the lack of available broadband options, rural markets are often served by independent wireless broadband operators who provide valuable broadband services to their communities. Despite their efforts, rural markets continue to lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 45% versus 65% broadband penetration for rural and urban, respectively). While some progress has been made increasing rural broadband penetration, there is still a significant amount of growth opportunity remaining. By bringing greater scale, purchasing power, favorable pricing and top-tier technology partners to these communities, KeyOn believes it can accelerate rural broadband adoption and expedite the delivery of next-generation services.

Mr. Snyder continued, “While we remain excited about the potential opportunities through the American Recovery and Reinvestment Act of 2009 (ARRA), we have always grown through acquisitions and our Rural UniFi initiative reinvigorates this effort in a big way. Given our diverse coverage area across the Midwestern and Western U.S. and our experience in growing rural markets, we are strategically positioned to continue to successfully integrate rural wireless broadband providers into KeyOn’s operations. We have always believed that by bringing together contiguous networks we can create a sizable, next-generation rural telecommunications company.”

KeyOn has added resources in support of the Rural UniFi initiative in order to handle the volume of pending transactions and inquiries. Interested wireless broadband operators can visit KeyOn’s unique initiative through the Company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTCBB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.

Non-GAAP Measures
This press release includes disclosure regarding “EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and are not recognized measures under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, interest expenses, goodwill impairment, non-cash stock based compensation expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 


 

KeyOn Continues to Improve its Balance Sheet with Note Conversion

KeyOn has reduced outstanding indebtedness by $1.9 million and increased equity capital by $3.3 million since May 2009

OMAHA, NE (September 2, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today that the holders of the Company’s subordinated secured notes due August 31, 2009 have elected to convert their notes into shares of the Company’s common stock.

The Company had a series of subordinated secured notes which were issued between July and December 2008. The notes were convertible into shares of the Company’s common stock at any time prior to maturity, which afforded the Company with an opportunity to reduce its outstanding debt and provided the holders of the notes with an additional option of repayment. As of August 31, 2009, the Company has reduced notes payable and interest payable liability by $1,188,042 in exchange for the issuance of 2,376,090 shares of common stock, representing the conversion of all of the Company’s existing notes. These notes will be eliminated from the Company’s current liabilities.

Importantly, two executives of the Company and their affiliates - Jonathan Snyder, CEO, and Jason Lazar, Vice
President Corporate Development and General Counsel - held notes totaling $555,137 (48% of the total outstanding notes) and participated in this conversion, demonstrating confidence in the Company and its current strategy.

In June, KeyOn reported that it had extended the maturity of its senior term loan for 6 years and reduced the principal by $450,000. Together with the reduction in the Company’s subordinated notes, KeyOn has eliminated $1.9 million of short-term indebtedness since May 2009 and has approximately $4.0 of long-term debt remaining on its balance sheet (not including capital lease obligations). In addition, KeyOn has increased equity capital by $3.3 million through the conversion and recent equity raises and has raised a total of $2.1 million since May 2009.

Commenting on the announcement, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “In 2009, our company goals were to generate positive EBITDA, strengthen our balance sheet and fulfill our strategic objectives including our application for government stimulus capital under the American Recovery and Reform Act of 2009 (ARRA) and the continuation of our acquisition efforts. With the conversion of our subordinated secured notes, I am extremely pleased that into the third quarter, we are tracking against our plan. We have reported 3 straight quarters of positive adjusted EBITDA, have significantly de-levered our balance sheet, raised common equity and completed federal stimulus applications totaling $150 million.”

Annette Eggert, KeyOn’s CFO, stated, “With the debt reductions, our current liabilities have become normalized. We are expecting that our accounts payable and accrued expenses will also be reduced in the coming quarters as we are expecting credits from certain vendors for previously expensed charges. I believe our balance sheet for the third quarter will provide a strong foundation for our growth through ARRA and acquisitions.”

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.


Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and are not recognized measures under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock based compensation expenses and other one time expenses incurred. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.


Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

 

 


 

KeyOn Files Applications for $150 Million of Federal Broadband Stimulus Funds under the American Recovery and Reinvestment Act of 2009

Stimulus Funds Would Provide For Rapid and Vast Expansion of KeyOn’s Wireless Broadband Networks to Offer Connectivity to More Than 6 Million People in Rural America

OMAHA, NE (August 19, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO - News), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today it has submitted multiple applications for federal funding through the Broadband Initiatives Program (BIP), as part of the American Recovery and Reinvestment Act of 2009 (ARRA).

Of the $7.2 billion allocated for broadband infrastructure in the ARRA, $2.5 billion is administered by the Rural Utilities Service for specific deployment of broadband networks and related infrastructure in rural, unserved and underserved communities across the U.S. If successful under this program, KeyOn’s existing wireless networks, which currently cover approximately 2.5 million people, would be expanded to cover as many as 16 states, and provide wireless broadband access to as many as 6.5 million people.

Commenting on the submissions, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “The management, employees, and key consultants of KeyOn have spent the past 3 months focusing on and refining our plan to submit these applications under the BIP for rural broadband deployment. As KeyOn is the largest and most experienced provider of wireless broadband networks specifically serving rural markets, I believe we are strongly positioned to extend the reach of broadband to the neediest areas in the country – namely the rural markets.”

KeyOn has submitted its applications in the first round of an expected three rounds, in which $2.4 billion has been set aside for funding. Importantly, the RUS will not fund more than one project to serve any given geographic area.

Mr. Snyder continued, “The goals of the Broadband Initiatives Program are aimed at enhancing rural America’s productivity and economic competitiveness by increasing broadband adoption while creating sustainable jobs. These are two goals that our plan addresses head-on and incorporates other tenets of the plan by promoting the use of broadband to a variety of public service organizations, such as schools and colleges, libraries, medical and health care centers and community support organizations. Our network design takes advantage of the latest fourth generation (4G) WiMAX technology and the newly regulated 3.65GHz spectrum, for which we hold a nationwide license.”

“With a network that currently spans 382 wireless broadband towers which has served mainly rural populations over the last seven years, we possess the experience and commitment to immediately commence construction of these next-generation wireless networks upon receipt of stimulus funds. We applaud the Obama Administration’s effort to expand broadband access into rural areas, the FCC’s foresight in making available the 3.65GHz spectrum which is ideal for the rural broadband initiative, and RUS’s efficient management of this process.”

About The Rural Utility Service (RUS) Broadband Initiatives Program (BIP)

As a part of the American Recovery and Reinvestment Act of 2009, a total of $2.5 billion was allocated to the U.S. Department of Agriculture’s Rural Utilities Service (RUS) to accelerate broadband deployment in rural areas of the country through the Broadband Initiatives Program (BIP). RUS will award grants, loans and loan/grant combinations to fund broadband infrastructure throughout the country. All funding distributed by RUS under the Act, whether grants, loans or loan guarantees, is required to be used for projects wherein at least 75% of a funded area is in a rural area that lacks sufficient high speed broadband service to facilitate economic development.

Section 6001 of the Recovery Act establishes a national broadband service development and expansion program to promote five core purposes:

a. To provide access to broadband service to consumers residing in un-served areas of the country;
b. To provide improved access to broadband service to consumers residing in underserved areas of the country ;
c. To provide broadband access, education, awareness, training, equipment, and support to community anchor institutions (e.g., schools, libraries, medical facilities), or organizations and agencies serving vulnerable populations (e.g., low-income, unemployed, aged), or job-creating strategic facilities located in state or federally designated economic development areas;
d. To improve access to, and use of, broadband service by public safety agencies; and
e. To stimulate the demand for broadband, economic growth, and job creation.

RUS will favor funding projects that can, among other things, commence construction promptly and demonstrate technical and financial feasibility, organizational capacity, and compliance with other Administration priorities.

More information about the RUS Broadband Initiatives Program can be found at:
http://www.broadbandusa.gov/files/BB%20NOFA%20FINAL%2007092009.pdf

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.
Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

 

REPLAY of KeyOn Investor Conference Call with CEO Jonathan Snyder

Original Broadcast Date and Time: Wednesday, July 15, 2009, 4:15 pm EDT / 1:15 pm PDT

REPLAY the Internet Webcast Link: CLICK HERE

KeyOn is in the process of partnering with certain critical community facilities and anchors in connection with its ARRA funding initiatives. Those that may qualify include, but are not limited to: libraries, hospitals, clinics, schools and community centers.  If you are interested in learning more about collaborating with KeyOn’s efforts, please send an email with the institution’s name, city, state, and a contact’s name, email address and phone number to community@keyon.com. For more information, please click below.

Click here for Community Anchor Information (PDF)

 

 

KeyOn Communications Holdings to Host Investor Conference Call

Company to Provide Corporate Overview as Well as Insight into Its Positioning for the $7.2 Billion Broadband Stimulus Program under the American Reinvestment and Recovery Act (ARRA)

OMAHA, NE (July 9, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO) (http://www.keyon.com), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today it will host an investor conference call and webcast on Wednesday, July 15, 2009 at 4:15 pm EDT.

KeyOn’s CEO, Jonathan Snyder, will provide an overview of the Company and discuss its positioning to participate in the American Recovery and Reinvestment Act of 2009 which allocates $7.2 billion of stimulus to provide broadband access to rural and underserved areas throughout the United States, among other things. Mr. Snyder will articulate how KeyOn intends to use stimulus funds to extend the reach of its current rural broadband network which spans eleven states which will facilitate the creation of jobs and economic expansion in and around its market footprint. There will be a Q & A session at the end of the presentation.

 

 

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.

 

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

 

Company Contact:

KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044      
VP of Marketing
rerchul@keyon.com
http://www.keyon.com/

- or -

Investor Relations Contact:

Liviakis Financial Communications, Inc.
John Liviakis, President
415-389-4670      
john@liviakis.com
http://www.liviakis.com/

 

 


KeyOn Further Strengthens Balance Sheet with Loan Extension and Modification of Terms
Debt principal is reduced and reclassified as a long-term obligation

OMAHA, NE (June 19, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, reported that it reached an agreement with its senior lender, Sun West Bank, to amend the terms of the Company’s existing loan and modify its loan agreement.

Pursuant to the change in terms, the maturity date of the Loan was extended for 6 years from June 4, 2009 until June 4, 2015. For the first 12 months the loan is interest only, and for the following 5 years the loan is amortized over a 10-year period with a final balloon payment. As part of the agreement, KeyOn made a principal reduction payment of $450,000, reducing the principal balance of the Loan from $4,500,000 to $4,050,000.

Commenting on the announcement, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “We have continued to improve our operating performance as evidenced by our two consecutive quarters of positive adjusted EBITDA. In addition, we have made strides towards bolstering our capital position and improving our leverage ratio. I am extremely pleased that we were able to accomplish the deleveraging of our balance sheet while moving a short-term debt item to a long-term category, especially with a maturity date 6 years out.”

Mr. Snyder continued, “KeyOn is continuing to develop its application for stimulus funds for the extension of its broadband networks under the American Reinvestment and Recovery Act. We are hoping to submit a sizable application and by strengthening our capitalization, we believe we are a stronger applicant and an even better investment vehicle for our potential future equity partners.”

Annette Eggert, KeyOn’s CFO, stated, “The loan will now be reclassified as Long-Term Debt where it had previously been in our Current Liabilities. Together with the principal reduction, our working capital position and current ratio are dramatically improved.”

 

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. Through its participation in the American Recovery and Reinvestment Act of 2009 (ARRA) and its allocation of $7.2 billion for the deployment of broadband infrastructure, among other things, the company intends to build next generation wireless broadband networks in and around its market footprint. More information on KeyOn can be found at www.keyon.com.

 

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not a recognized measure under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment and non-cash stock based compensation expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

 

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

 


 

 

KeyOn Set to Implement LogiSense’s Billing and OSS Management Tools
Robust software system to handle KeyOn’s expected surge in subscriber growth

OMAHA, NE and CAMBRIDGE, ON (June 10, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, and LogiSense Corporation, a leading provider of billing, OSS and business process management solutions for telecommunication and broadband service providers, announced that KeyOn is implementing LogiSense’s EngageIP billing, operations support/customer resource management (OSS/CRM) platform. EngageIP will provide KeyOn with secure, end-to-end bill processing, order management and customer information management for its wireless broadband and related services

Commenting on the announcement, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “We knew with continued growth of our business, KeyOn was going to need a robust and dynamic platform to handle significant subscriber additions. With EngageIP, we get a management system that fully automates our service delivery, billing and customer management functions for not only our wireless broadband service but also other complementary services we offer, such as VoIP.”

KeyOn has been preparing its application for funding under the American Recovery and Reinvestment Act of 2009, which is allocating $7.2 billion to extend the reach of broadband access to rural and underserved areas throughout the United States, among other things. With KeyOn’s stated intention to continue to make accretive acquisitions and organically grow its customer base, KeyOn sought to upgrade its OSS and billing systems. After an exhaustive search of providers, KeyOn selected LogiSense for its technical expertise and commitment to the project.

LogiSense’s solution provides a complete wireless broadband service management platform with EngageIP billing in order to authenticate, rate and bill KeyOn’s wireless subscribers. The EngageIP platform is being used to service catalogue, authenticate, rate, bill and provision fixed wireless and mobile data services, like “hot spots”.

Flavio Gomes, CEO of LogiSense, commented, “We are extremely pleased to be working with one of the largest wireless broadband companies in the US. We are confident that our software products will meet the needs of rapidly growing broadband service providers like KeyOn, around the globe. The KeyOn team has a big vision and expects its customer backend to be up to the task – LogiSense believes it has the best solution and is excited to be a part of KeyOn’s business plans.”

“LogiSense has been a pleasure to work with from the technology aspects to the level of support we get from their team. We greatly appreciate LogiSense’s diligence and responsiveness we have received on our product roll-out. We look forward to a continued mutually beneficial association”, stated Jonathan Snyder.

 

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

 

About LogiSense Corporation
LogiSense Corporation is the leading provider of IP network service management products for service providers competing in the converged IP services market. The EngageIP products address specific network usage administration requirements including billing, cost allocation, customer care, traffic management, rating, and IP services delivery. For more information about LogiSense, visit www.logisense.com.

 

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

 

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com

- or -

Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

 

LogiSense Corporation
Flavio Gomes, (519)249-0508x1101
fgomes@logisense.com

 

 


 

KeyOn Engages Premier Telecom Consultancy
Adds expertise in preparation for the ARRA Broadband Stimulus Program

OMAHA, NE (June 1, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced today it has engaged Interactive Broadband Consulting Group, LLC (IBB Consulting) to assist in the company’s application under the American Recovery and Reinvestment Act of 2009 that allocates $7.2 billion to provide broadband access to rural and underserved areas throughout the United States, among other things.

Management expects that if it is successful in its application, funds from the stimulus program will enable KeyOn to extend the reach of its networks to areas contiguous to the company’s existing network footprint. The Company expects to introduce next-generation services by deploying advanced wireless broadband equipment utilizing “WiMAX” (Worldwide Interoperability for Microwave Access) technology. The advantages of deploying WiMAX technology, based on a global standard, include higher data speeds, greater spectral efficiency, advanced nomadic services with self-installation features, global economies of scale and forward compatibility with the mobile WiMAX (802.16 (e) standard).

Commenting on the announcement, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “We are extremely pleased to add such a knowledgeable partner to our growing team. As our current operations cover rural populations in 11 states, our application is going to be quite exhaustive. IBB has a great track record in providing quality, in-depth advice to top-tier telecommunications service providers, including most of the top cable companies in the U.S., for the formulation of proposals and the execution of wireless network build strategies. We believe the stimulus program is a watershed event for broadband in the United States and in particular, rural America – we believe KeyOn can play an important role in achieving the goals of the statute.”

Michael Wong, a principal of IBB Consulting commented, “We are pleased to be working with KeyOn on this important initiative. With our extensive track record helping national, regional and emerging operators develop business plans and proposals and the work we have done to date on the ARRA stimulus package, we believe we are ideally suited to support KeyOn. These federal telecommunications stimulus programs are directed towards service providers who will not only deliver next generation broadband services to under-served communities but also deploy “shovel-ready” projects that can be commenced within 120 days from the passage of ARRA. With KeyOn’s existing base of operations, business strategy and ability to deploy networks quickly make it an ideal candidate for participation in the funding.”

 

About KeyOn Communications Holdings, Inc.

KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

 

About Interactive Broadband Consulting Group

Interactive Broadband Consulting Group, LLC (IBB Consulting) is a premier boutique consulting firm serving leading broadband-related product and service providers in the Cable, Mobile, Media and Technology industries. We offer the collective expertise of a team of broadband industry veterans, with world-class industry knowledge and business, technology and operational experience. Throughout the history of the broadband industry, we have helped our clients conceive, build and grow some of the industry's most significant strategic, marketing, product, technology and operational initiatives. More information on IBB Consulting can be found at http://www.ibbconsulting.com.

 

Safe Harbor Statement

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

 

Company Contact:

KeyOn Communications Holdings, Inc.
Rory Erchul
VP of Marketing
402-998-4044
rerchul@keyon.com
www.keyon.com

 

Investor Relations Contact:

Liviakis Financial Communications, Inc
John Liviakis
John@Liviakis.com
(415) 389-4670
655 Redwood Hwy, Suite 395
Mill Valley, CA 94941
www.liviakis.com

 

Consulting Contact:

Interactive Broadband Consulting Group, LLC (IBB Consulting)
info@ibbconsulting.com

 

 

 


 

KeyOn Reports First Quarter 2009 Results

OMAHA, NE (May 15th, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, reported its financial results for the quarter ended March 31, 2009.

Commenting on the announcement, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “While we have not expanded our business by acquiring other wireless broadband companies or through organic growth as we have done in prior years, we have continued to execute on our current strategy of controlling expenses and improving our operating efficiencies. These efforts have further strengthened our operating foundation as evidenced by the fact that for the second quarter in a row, we achieved positive EBITDA of $525,387 and adjusted EBITDA of $64,714.”

Mr. Snyder continued, “We are now preparing for a renewed subscriber growth and build-up of our pipeline of acquisitions.  Moreover, we are extremely excited by our expected participation in the $7.2 billion stimulus funding targeted at providing broadband access to rural and underserved areas throughout the United States.  With our expansive network footprint across 11 states and our proven track record of extending the reach of broadband to rural areas, we’re ideally positioned to receive these funds.  We are putting the pieces in place for our application for stimulus funds through the National Telecommunications & Information Administration’s (NTIA) Broadband Technology and Opportunities Program (BTOP),as well as the Department of Agriculture’s Rural Utilities Service (RUS) program, both of which are a part of the 2009 American Recovery and Reinvestment Act economic stimulus package.  The NTIA and RUS are providing grants, loans and loan guarantees that will fund the build-out of the latest generation of broadband for the benefit of rural households, businesses and public good institutions like hospitals, libraries, and public safety.”

2009 First Quarter Consolidated Results 

For the first quarter ended March 31, 2009, the Company reported revenue of $1,866,172, a decrease of approximately 8.8%, as compared to $2,046,031 for the first quarter ended March 31, 2008. This decrease is consistent with our cost restructuring plan which focused on maintaining our current subscriber base while reducing overall marketing and advertising costs. Customer disconnects have remained stable but not marketing to acquire new subscribers resulted in an overall decline in our customer base.

The operating loss, which included non-cash stock-based compensation expense reversal of $0.5 million for the quarter ended March 31, 2009, was $0.1 million for the quarter ended March 31, 2009, as compared to an operating loss of $ 2.4 million for the quarter ended March 31, 2008 which included non-cash based stock compensation of $1.1 million.

The Company reported a net loss of $0.4 million, or $.04 loss per common share, for the quarter ended March 31, 2009, compared to a net loss of $2.6 million, or $.31 loss per common share, for the quarter ended March 31, 2008, an improvement of 85%.

Adjusted EBITDA for the quarter ended March 31, 2009 was $64,714 compared to negative $563,100 in the first quarter in the prior year, an improvement of $627,814.

Annette Eggert, KeyOn’s CFO, stated, “We have made significant strides toward our financial target of generating continued positive EBITDA. Our two consecutive quarters of positive EBITDA margin demonstrates that our efforts are having a significant and measurable impact on our business. Furthermore, we believe this trend to continue as we move forward with our business plan.”

Outlook
Jon Snyder continued, “We are extremely optimistic about the future of providing broadband to rural and underserved markets in the US. Over the past 6 years, our mission has been to extend the reach of broadband using wireless technologies. Now, with the stimulus funds made available under ARRA for broadband deployment, we should be able to vastly accelerate the growth of our business. And, with the capital markets slowly bouncing back, we are looking at restarting our acquisition efforts in the coming quarters.”

 

About KeyOn Communications Holdings, Inc.

KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures

This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and are not recognized measures under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment and non-cash stock based compensation expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:

KeyOn Communications Holdings, Inc.
Rory Erchul, VP of Marketing
402-998-4044
rerchul@keyon.com

 

Investor Relations Contact:
Liviakis Financial Communications, Inc
John Liviakis
(415) 389-4670
John@Liviakis.com
655 Redwood Hwy, Suite 395
Mill Valley, CA 94941
www.liviakis.com

 


 

KeyOn Reports 2008 Record Revenue and Positive EBITDA in Q4 2008 

Company Will Apply To Participate in $7.2 Billion Stimulus Plan for Broadband Expansion

OMAHA, NE (April 15, 2009) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, reported record revenue as part its financial results for the year ended December 31, 2008.

Commenting on the announcement, Jonathan Snyder, President and CEO of KeyOn Communications, stated, “In spite of challenging economic conditions, KeyOn was able to post record annual revenue in 2008. Moreover, we achieved a significant financial milestone in the fourth quarter, recording positive adjusted EBITDA of $64,725. Throughout the year, we continued to implement a series of actions to increase revenue, improve operating efficiencies and reduce expenses.”

Mr. Snyder continued, “In addition to our ongoing pursuit of additional accretive acquisitions, we are preparing our application to participate in the $7.2 billion stimulus funding targeted at providing broadband access to rural and under served areas throughout the United States. As part of the 2009 American Recovery and Reinvestment Act economic stimulus package, The National Telecommunications & Information Administration (NTIA) is issuing grants through the Broadband Technology and Opportunities Program (BTOP), and the Department of Agriculture’s Rural Utilities Service (RUS) program is offering grants, loans and loan guarantees that will fund the build-out of rural broadband for municipalities, state governments, utility companies, and rural telecom providers. With our proven track record as one the largest wireless broadband providers serving rural markets throughout eleven states, KeyOn is ideally positioned to participate in this unprecedented stimulus package.”

2008 Year Consolidated Results

For the year ended December 31, 2008, revenue was a record $7.8 million, an increase of 8.5% as compared to $7.2 million for the year ended December 31, 2007. The operating loss, which included non-cash stock compensation and goodwill impairment expenses of $3.4 million, was $7.2 million in 2008, as compared to an operating loss of $7.0 million in 2007. The Company’s operating loss margin improved by 5 percentage points year-over-year.

When removing non-cash stock compensation and goodwill impairment expenses, the normalized operating loss margin improved by 27 percentage points, for a total normalized operating loss of $3.7 million in 2008, as compared to a normalized operating loss of $5.4 million in 2007. The improved margins were partly the result of benefits received through finalizing the integration of the two acquisitions completed in 2007 whereby we eliminated significant duplicative costs and improved efficiencies through economies of scale. The Company reported a net loss of $8.1 million, or $0.96 loss per common share, for the year ended December 31, 2008, compared to a net loss of $7.6 million, or $1.18 loss per common share, for the year ended December 31, 2007.

Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for the year ended December 31, 2008 was negative $982,788, compared to negative $2,787,856 in the prior year, an improvement of 65%.

Annette Eggert, KeyOn’s CFO, stated, “During 2008, we became more efficient operationally, allowing the Company to reduce headcount from 65 full-time employees on March 31, 2008 to 46 full-time employees as of April 15, 2009. We also chose to focus our marketing efforts on obtaining referrals from our existing customer base. These initiatives resulted in fewer gross customer additions but significantly reduced the cost of new customer procurement. Network operating expenses were also decreased. To the extent the rent for a network tower significantly exceeded the revenues generated by customers being served, we terminated those lease agreements resulting in decreased tower expenses. Additionally, we have combined networks allowing us to purchase fewer circuits and save on Internet termination costs. Finally, fees charged for new subscriber installations were increased, resulting in a faster break-even point for new subscriber additions.”

Outlook

Jonathan Snyder continued, “We are more enthused than ever about KeyOn’s prospects given its strong legacy market position as one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the US. When coupled with potential benefits from both the stimulus package and the existence of multiple possible acquisition targets, we see a significant opportunity to accelerate growth and create meaningful shareholder value.”


About KeyOn Communications Holdings, Inc.

KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video and VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures

This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and are not recognized measures under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment and non-cash stock based compensation expenses. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:

KeyOn Communications Holdings, Inc.
Rory Erchul, VP of Marketing
402-998-4044
rerchul@keyon.com

 

 

© 2008 KeyOn Communications Inc.

 

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