Crexendo, Inc. (OTCQX:CXDO), a hosted services company that provides hosted telecommunications services, broadband internet services and website hosting services for businesses, today reported financial results for its third quarter ended September 30, 2016.

Financial highlights for the three months ended September 30, 2016

Consolidated revenue for the third quarter of 2016 increased 18% to $2.3 million compared to $2.0 million for the third quarter of 2015.

Hosted Telecommunications Services Segment revenue for the third quarter of 2016 increased 31% to $2.0 million compared to $1.5 million for the third quarter of 2015.

Web Services Segment revenue for the second quarter of 2016 decreased 26% to $320,000, compared to $430,000 for the third quarter of 2015.

Consolidated operating expenses for the third quarter of 2016 decreased 3% to $2.9 million compared to $3.0 million for the third quarter of 2015.

On a GAAP basis, the Company reported a $(621,000) net loss for the third quarter of 2016, or $(0.05) loss per diluted common share, compared to net loss of $(1.0) million or $(0.08) loss per diluted common share for the third quarter of 2015.

GAAP net loss was $(353,000) for the third quarter of 2016, or $(0.03) loss per diluted common share, compared to a non-GAAP net loss of $(742,000) or $(0.06) loss per diluted common share for the third quarter of 2015.

EBITDA for the third quarter of 2016 was $(574,000) compared to $(1.0) million for the third quarter of 2015.  Adjusted EBITDA for the third quarter of 2016 was $(364,000) compared to $(738,000) for the third quarter of 2015.

Financial highlights for the nine months ended September 30, 2016

Consolidated revenue for the nine months ended September 30, 2016 increased 19% to $6.8 million compared to $5.7 million for the nine months ended September 30, 2015.

Hosted Telecommunications Services Segment revenue for the nine months ended September 30, 2016 increased 33% to $5.7 million compared to $4.3 million for the nine months ended September 30, 2015.

Web Services Segment revenue for the nine months ended September 30, 2016 decreased 26% to $1.1 million compared to $1.4 million for the nine months ended September 30, 2015.

Consolidated operating expenses for the nine months ended September 30, 2016 decreased 2% to $9.0 million compared to $9.2 million for the nine months ended September 30, 2015.

On a GAAP basis, the Company reported a $(2.3) million net loss for the nine months ended September 30, 2016, or $(0.17) loss per diluted common share, compared to net loss of $(3.3) million or $(0.25) loss per diluted common share for the nine months ended September 30, 2015.

Non-GAAP net loss was $(1.4) million for the nine months ended September 30, 2016, or $(0.11) loss per diluted common share, compared to a non-GAAP net loss of $(2.2) million or $(0.17) loss per diluted common share for the nine months ended September 30, 2015.

EBITDA for the nine months ended September 30, 2016 was $(2.1) million compared to $(3.3) million for the nine months ended September 30, 2015.  Adjusted EBITDA for the nine months ended September 30, 2016 was $(1.5) million compared to $(2.3) million for the nine months ended September 30, 2015.

Total cash and cash equivalents, excluding restricted cash, at September 30, 2016 was $854,000 compared to $1.7 million at September 30, 2015.

Cash used for operating activities for the nine months ended September 30, 2016 was $(737,000) compared to $(2.0) million for the nine months ended September 30, 2015.  Cash provided by investing activities for the nine months ended September 30, 2016 was $11,000 compared to cash used for investing activities of $(20,000) for the nine months ended September 30, 2015. Cash provided by financing activities for the nine months ended September 30, 2016 was $83,000 compared to $678,000 for the nine months ended September 30, 2015.

Steven G. Mihaylo, Chief Executive Officer commented, “We continue to make progress. We have again increased our revenue on a quarterly basis 2016 over 2015. We also continue to increase our backlog and sequential quarterly revenue.  We have continued our cost reduction initiatives and have completed a thorough review of costs. We have targeted cost reductions for software programs that we can cancel and others that we can replace with significantly more cost-effective replacements. We have also implemented other cost reduction initiatives. We believe these actions will have a very positive impact in 2017. We are also deferring planned expenditures in accounting software while we continue to work toward reaching GAAP cash flow breakeven.

Mihaylo added, “Our number one priority is amplifying our marketing campaign while continuing to work to increase our Dealer Partner Channel and our Direct Sales Channel. Our products, services, solutions and support are second to none. I continue to be firmly convinced that Crexendo will be very successful so long as we continue to put our customers first with the best solutions available.”

Conference Call

The Company is hosting a conference call today, November 11, 2016 at 5:30 PM EST. The telephone dial-in number is 877-795-3604 for domestic participants and 719-325-4750 for international participants. The conference ID to join the call is 1971912.  Please dial in five to ten minutes prior to the beginning of the call at 5:30 PM EST.

About Crexendo

Crexendo, Inc. (CXDO) is a hosted services company that provides hosted telecommunications services, broadband internet services and website hosting services for businesses. Our services are designed to make enterprise-class hosting services available to any size businesses at affordable monthly rates.