PEER 1 Hosting Reports Fiscal 2013 First Quarter Results

admin — Wed, 07 Nov 2012 21:23:48 +0000

VANCOUVER, BC – November 7, 2012 – PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting, a leading provider of online IT infrastructure, today announced its results for the three months ended September 30, 2012. All amounts are stated in US dollars unless otherwise noted.

Selected Financial Highlights Comparing the Quarters Ended September 30, 2012 and 2011

Revenue increased 25% to $39.3 million from $31.5 million;
Gross profit increased 21% to $15.4 million from $12.7 million;
Normalized EBITDA was $10.8 million, up from $7.9 million; and
Net income was $0.4 million compared to a net loss of $1.3 million.

Selected Highlights for First Quarter and Period Subsequent to Quarter-End

Closed the acquisition of NetBenefit (UK) Ltd ("NetBenefit") for a total purchase price of $39.6 million. The integration of NetBenefit is progressing to plan and is expected to be largely completed by the end of the third quarter of fiscal 2013. Revenue and normalized EBITDA contribution from NetBenefit are tracking to expectations, as is synergy realization and one-time integration costs; and
Entered into a strategic partnership with an enterprise cloud platform developer, Tier 3, leveraging the global IT hosting services of PEER 1 with the VMware-based enterprise-grade cloud platform from Tier 3. The partnership expands and complements the Company’s existing cloud product offerings and should bring a strong pipeline of business to PEER 1.

"The closing of the NetBenefit transaction made an immediate, full quarter contribution to our financial results," said Fabio Banducci, President and CEO of PEER 1 Hosting. "To this point we are pleased with the impact that the acquisition is having and our focus remains on completing the integration on time and on budget which will move us closer to fully realizing the strategic and numerous cost synergies this transaction has brought to the table."

Financial Review for the Three Months Ended September 30, 2012 and 2011

Revenue increased to $39.3 million (up 25%) for the three months ended September 30, 2012 from $31.5 million for the three months ended September 30, 2011. Of the 25% increase in revenues over the prior year quarter, approximately $3.9 million (12%) is attributable to NetBenefit’s operations, and the remaining increase of approximately 13% is attributable to organic growth. The impact of different exchange rates on revenue between the two periods was not material.

Colocation revenue increased to $6.4 million for the three months ended September 30, 2012 compared with $6.1 million for the three months ended September 30, 2011. The increase in colocation revenue is attributable to organic growth.

Bandwidth revenue was $2.3 million for the three months ended September 30, 2012 compared with $2.3 million for the three months ended September 30, 2011. Bandwidth revenue stayed flat primarily due to increased customer usage which was offset by lower selling prices.

Hosting services revenues increased to $30.6 million for the three months ended September 30, 2012 from $23.1 million for the three months ended September 30, 2011. Of the $7.5 million (33%) increase in hosting revenue, $3.9 million (17%) is attributable to NetBenefit and the remaining increase of $3.6 million (16%) is attributable to organic growth.

Cost of sales increased by $5.1 million (27%) for the three months ended September 30, 2012 from $18.8 million for the three months ended September 30, 2011. Of the 27% increase in cost of sales, approximately $1.5 million (8%) was attributable to NetBenefit’s acquired operations. Cost of sales as a percentage of revenue increased to 61% for the three months ended September 30, 2012 compared with 60% for the three months ended September 30, 2011.

The increase in cost of sales for the three months ended September 30, 2012 compared with the same period in the prior year is primarily due to increased depreciation costs of $2.0 million, staff costs of $0.5 million, software license costs of $0.2 million, bandwidth costs of $0.5 million, power costs of $0.3 million, and an increase in other cost of sales expenses, as well as the addition of NetBenefit. Other than the increase attributable to NetBenefit, these increases are primarily attributable to the increase in revenues.

Total operating expenses increased by $4.3 million to $15.2 million for the three months ended September 30, 2012 from $10.9 million for the three months ended September 30, 2011. Operating expenses as a percentage of revenue increased to 39% for the three months ended September 30, 2012 from 35% for the three months ended September 30, 2011.

Total operating expenses for the three months ended September 30, 2012 are comprised of $8.0 million in general and administrative expenses (September 30, 2011: $4.9 million), $6.0 million sales and marketing expenses (September 30, 2011: $4.8 million), and $1.2 million in expenses for technology and customer relations (September 30, 2011: $1.2 million).

Of the $3.1 million increase in general and administrative expenses, $1.0 million is related to the acquisition and integration expenses of NetBenefit, $0.8 million relates to the intangible asset amortization expense associated with the NetBenefit customer relationships that arose from the purchase price allocation, and the remaining increase of $1.3 million relates to the expenses of the NetBenefit operations and an increase in other administrative expenses of PEER 1.

The increase in sales and marketing expenses of $1.2 million, for the three months ended September 30, 2012, is due to a $0.4 million increase in marketing activities to support the continued growth of the Company, an increase of $0.2 million in commission expenses relating to the increase in revenues and bookings, and an increase of $0.6 million in other sales and marketing expenses including the sales and marketing expenses from the NetBenefit operation.

Normalizing operating expenses for the acquisition and integration expenses related to NetBenefit means operating expenses for the three months ended September 30, 2012 would be $14.2 million (36% of revenues) compared with operating expenses of $10.9 million (35% of revenues) for the three months ended September 30, 2011.

Normalized EBITDA was $10.8 million for the three months ended September 30, 2012, compared with $7.9 million in the prior year period.

Net profit for the first quarter ended September 30, 2012 was $0.4 million, compared with a net loss of $1.3 million for the same period in 2011.

As at September 30, 2012, the Company had cash and cash equivalents of $5.8 million compared with $51.1 million as at June 30, 2012. The current portion of the Company’s loans and borrowings as at September 30, 2012 was $7.5 million. The Company had a working capital deficiency of $13.0 million at September 30, 2012, compared with working capital of $28.4 million as at June 30, 2012. The decrease in working capital is primarily due to use of funds for the acquisition of NetBenefit, and partly due to investments in property, plant and equipment. As at September 30, 2012, the Company had available $39.8 million under its $149.4 million credit facilities and an additional $25.0 million available under the accordion feature of its credit agreement.

PEER 1 Hosting had 126,803,020 common shares issued and outstanding as at September 30, 2012.

EBITDA Reconciliation
(unaudited - prepared by management)

					Three Months Ended
					30-Sep		30-Sep
(in $ millions)				2012		2011
Profit (loss)				$ 0.4		$ (1.3)
Finance expense				1.4		1.5
Depreciation, amortization		9.1		5.7
Income tax expense (recovery)		0.1		(0.4)
Stock-based compensation		0.4		0.3
Foreign exchange gain (loss)		(1.7)		2.0
Acquisition and integration costs	1.0		-
Other non-operating expenses (income)	-		0.1
Normalized EBITDA			$ 10.8		$ 7.9

Conference Call

PEER 1 Hosting will hold a conference call on Thursday, November 8, 2012 at 11:00 am Eastern Time (ET), to discuss the results for the first quarter of fiscal 2013. The Company’s full Financial Statements and Management's Discussion and Analysis are available on its website at http://www.peer1.com/investors.

To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. The conference call will be archived for replay until Thursday November 15, 2012, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 39225223 followed by the number sign.

A live audio webcast of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/1048355/1139295

Please connect at least 10 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.

Non-IFRS Measures

PEER 1 Hosting reports normalized EBITDA because it is a key measure used by management to evaluate the Company's performance. PEER 1 Hosting believes that normalized EBITDA is useful supplemental information, as it provides an indication of the results generated by PEER 1 Hosting's main business activities. Normalized EBITDA is not a recognized measure under IFRS, and accordingly investors are cautioned that normalized EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of financial performance of PEER 1 Hosting, or as a measure of the company's liquidity and cash flows. PEER 1 Hosting's method of calculating normalized EBITDA may differ from other issuers and, accordingly, normalized EBITDA may not be comparable to similar measures presented by other issuers. The schedule above sets out PEER 1 Hosting's normalized EBITDA calculations.

About PEER 1 Hosting

PEER 1 Hosting is one of the world's leading IT hosting providers. The company is built on two obsessions: Ping & People. Ping, represents its commitment to best-in-breed technology, founded on a high performance 10Gbps FastFiber Network™ connected by 19 state-of-the-art datacenters and 21 points-of-presence throughout North America and Europe. People, represents its commitment to delivering outstanding customer service to its more than 10,000 customers worldwide, backed by a 100 percent uptime guarantee and 24x7x365 FirstCall Support™. Info-Tech Research Group recently named PEER 1 Hosting as a "Champion" in its Canadian colocation and managed services Vendor Landscape report, recognizing the company's strength in product offerings and enterprise strategy in the global IT marketplace. PEER 1 Hosting's portfolio includes Managed Hosting, Dedicated Servers under the ServerBeach brand, Colocation and Cloud Services under the Zunicore brand. Founded in 1999, the company is headquartered in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or www.peer1hosting.co.uk.

Forward Looking Statements

Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in PEER 1 Hosting's public filings with securities regulatory authorities.

For investor inquiries please contact:

Nick Hurst
The Equicom Group
+1 (403) 218-2835
nhurst@tmxequicom.com

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PEER 1 Hosting to Hold First Quarter Results Conference Call on Thursday, November 8, 2012

admin — Wed, 31 Oct 2012 22:09:58 +0000

VANCOUVER, BC – October 31, 2012 – PEER 1 Network Enterprises, Inc. (TSX: PIX), doing business as PEER 1 Hosting, a leading provider of online IT hosting, announced today that it will host its first quarter fiscal 2013 results conference call on Thursday, November 8 at 11:00 a.m. Eastern Time (ET). PEER 1 intends to release its financial results after markets close on Wednesday, November 7, 2012, at which time the Financial Statements and Management’s Discussion and Analysis will also be posted to www.peer1.com/investors.

President and CEO Fabio Banducci and Executive Vice President and CFO Gary Sherlock will discuss PEER 1’s financial results for the quarter and then take questions from securities analysts.

To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191.The conference call will be archived for replay until Thursday, November 15, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number: 39225223 followed by the number sign.

A live audio webcast of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/1048355/1139295

About PEER 1 Hosting
PEER 1 Hosting believes in the limitless opportunity of the Internet, and the business growth potential it provides for its more than 10,000 customers. As a global online IT hosting provider, PEER 1 Hosting offers a reliable high performance Internet network supporting scalable managed hosting, dedicated hosting through the ServerBeach brand, and colocation solutions. Backed by its 100 percent uptime guarantee and 24x7x365 FirstCall Support™, PEER 1 Hosting ensures customers’ online presence is always fast, always available. Since 1999, PEER 1 Hosting has grown to include 18 state-of-the-art data centres and points-of-presence throughout North America and Europe. The company’s headquarters are in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or www.peer1hosting.co.uk.

For further information:

For investor inquiries please contact David Feick, Equicom Group, (403) 218-2839, dfeick@equicomgroup.com.

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PEER 1 Hosting Reports Fiscal 2012 Fourth Quarter and Year End Results

admin — Mon, 24 Sep 2012 20:13:21 +0000

VANCOUVER, Sept. 24, 2012 /CNW/ - PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting (PEER 1 or the "Company"), a leading provider of online IT infrastructure, today announced its results for the three and 12 months ended June 30, 2012. All amounts are stated in US dollars unless otherwise noted.

Selected Financial Highlights for the Fiscal Years Ended June 30, 2012 and 2011

Revenue increased 18% to $133.6 million from $112.8 million;
Gross profit increased 20% to $51.4 million from $42.9 million;
Operating profit decreased 22% to $1.9 million from $2.5 million; and
Normalized EBITDA increased 33% to $34.3 million from $25.7 million.

Selected Highlights for Fiscal 2012

Completion of an acquisition of all the outstanding shares in the capital of NetBenefit (UK) Limited ("NetBenefit"), a division of London-based Group NBT Limited, and a leading UK-based managed hosting company, effective July 1, 2012. The fully funded, all cash £25.2 million (US$39.6 million) transaction, is the largest acquisition transaction for PEER 1 to date, and clearly establishes PEER 1 as a leader in the UK managed hosting market. The transaction is expected to deliver substantial financial and strategic benefits and other synergies including the integration and migration of NetBenefit's business and servers into PEER1's new flagship datacenter in the UK;
Entry into a new credit agreement, replacing its previous facility, with a syndicate of lenders led by National Bank of Canada ("NBC"), and including HSBC Bank Canada, HSBC Bank PLC, GE Canada, Business Development Bank, Bank of America, Laurentian Bank of Canada and Canadian Western Bank. The new facilities are comprised of a US$100.0 million non-revolving term facility and a US$40.0 million and £7.0 million revolving credit facility. In addition, an accordion feature allows PEER 1 to request an increase in the amount available under the revolving facility by a further US$25.0 million, bringing the total potential credit available under the facilities to US$175.0 million;
Completion and opening of a new 57,800 square foot green data centre in Portsmouth, UK. The facility offers businesses across London and the South East scalable managed hosting, dedicated hosting and colocation services in one of the greenest data centres in the country. The location is also optimal for businesses of all sizes operating in Europe. This state-of-the art facility leads the way in reducing the carbon footprint for the Company's customers, delivers 24/7 service and provides customers with the capacity to grow;
Signature of a lease for additional data centre space in its existing Los Angeles facility. The additional space will allow the Company to offer up to approximately 3,000 servers of additional capacity to its high end managed and dedicated hosting customers who demand a West Coast presence;
Successful achievement of the Level 1 Payment Card Industry Data Security Standard (PCI DSS) certification for several managed hosting and co-location data centres worldwide. PEER 1 Hosting's clients, who handle and process customer card details and transactions, can now be confident that their applications can be supported in a PCI compliant environment, enabling them to focus on their business rather than securing their hosted environments; and
Entry into a partnership with Magento Inc. to offer a new optimized Managed Hosting solution to online retailers. The offering is a turn-key infrastructure solution designed to improve the performance and reliability of Magento-based e-commerce websites, delivered over PEER 1 Hosting's 10Gb FastFiber™ Network and supported by PEER 1 Hosting's unlimited FirstCall™ Support.

"In fiscal 2012 we continued to invest heavily in growth, particularly in the EMEA region as we opened our new flagship UK data centre and completed an acquisition that established us as a clear leader and will offer numerous synergies in this market," said Fabio Banducci, President and CEO of PEER 1 Hosting. "In parallel with the NetBenefit acquisition we also secured syndicated credit facilities that will provide us with considerable flexibility in funding growth."

Financial Review for the Three and Twelve Months Ended June 30, 2012 and 2011
Revenue increased to $34.3 million for the three months ended June 30, 2012 from $29.9 million for the three months ended June 30, 2011. When adjusted for the exchange rates in effect in the prior year period, revenue for the three months ended June 30, 2012 was $34.6 million. Taking into account the effect of the differing exchange rates between the Canadian and US dollars for the comparative period, revenue increased by 16% for the three months ended June 30, 2012. Revenue increased to $133.6 million for the twelve months ended June 30, 2012 from $112.8 million for the twelve-month period ended June 30, 2011. When adjusted for the exchange rates in effect during the period, revenue for the twelve months ended June 30, 2012 increased to $133.8 million. The increase in revenue for both periods is attributable to organic growth. Colocation revenues increased to $4.5 million for the three months ended June 30, 2012 from $4.3 million for the three months ended June 30, 2011, and increased to $17.8 million for the twelve months ended June 30, 2012, compared with $15.5 million for the twelve months ended June 30, 2011. The increase in colocation revenue for both periods is attributable to organic growth, offset partly by the decreased value of the Canadian dollar against the US dollar for the three month period ended June 30, 2012. Bandwidth revenues increased to $2.3 million for the three months ended June 30, 2012 compared with $2.2 million for the three months ended June 30, 2011, and increased to $9.4 million for the twelve months ended June 30, 2012, compared with $8.9 million for the twelve months ended June 30, 2011. The increase in bandwidth revenue for the three months and the twelve months ended June 30, 2012 is attributable to organic growth. Hosting Services revenues increased to $25.6 million for the three months ended June 30, 2012 from $21.7 million for the three months ended June 30, 2011, and increased to $99.5 million for the year ended June 30, 2012 from $82.1 million for the year ended June 30, 2011. The increase for both periods is attributable to organic growth. Hosting Services revenues were not materially impacted by foreign exchange effects as the majority of the Hosting Services sales are currently denominated in US dollars. Consolidated cost of sales increased to $22.2 million for the three months ended June 30, 2012 from $18.6 million for the three months ended June 30, 2011, $2.5 million of which related to UK operations. Cost of sales as a percentage of revenue increased to 65% for the three months ended June 30, 2012 from 62% for the three months ended June 30, 2011. The increase in cost of sales compared to the same period in the prior year is primarily due to increased depreciation costs of $2.3 million, increased staff cost of $0.6 million, increased bandwidth costs of $0.3 million, and an increase of $0.7 million in other expenses. The increase in cost of sales as a percentage of revenue relative to the prior year is primarily due to the increase in capacity in anticipation of future growth. Cost of sales increased by $12.3 million for the year ended June 30, 2012 from $69.9 million for the year ended June 30, 2011. During the year, the Company incurred costs $7.7 million ($4.4 million in prior year) related to its operations in the United Kingdom, which are included in cost of sales. Total cost of sales included $0.2 million of one-time property tax assessments in the UK. Cost of sales as a percentage of revenue remained unchanged at 62% for the year ended June 30, 2012 compared with the year ended June 30, 2011. The increase in cost of sales for the year ended June 30, 2012 compared with the same period in the prior year is primarily due to increases in depreciation costs of $6.5 million, staff costs of $1.5 million, software license costs of $1.4 million, bandwidth costs of $0.8 million, power costs of $0.7 million, and $1.0 million in other cost of sales expenses. The increases in these expenses can primarily be attributed to higher revenues. Total operating expenses increased to $13.6 million for the three months ended June 30, 2012 from $10.1 million for the three months ended June 30, 2011. Operating expenses as a percentage of revenue were 40% for the three months ended June 30, 2012 and 34% for the three months ended June 30, 2011. For the year ended June 30, 2012 total operating expenses increased by $9 million to $49.5 million. Operating expenses as a percentage of revenue increased to 37%, from 36% for the year ended June 30, 2011. The increase in total operating expenses for the three months ended June 30, 2012, are primarily due to an increases in staff and training costs of $1.3 million, professional services of $0.7 million, advertising of $0.3 million, amortization expense of $0.2 million, and other expenses of $0.6 million. For the year ended June 30, 2012 the increase in operating expenses is largely attributable to $4.7 million in staff and training cost, higher commission expenses of $0.8 million, and an increase of $3.2 million in other operating expenses. Of the total increase of $3.5 million in operating expenses relative to the prior year for the period ended June 30, 2012, $1.5 million was directly related to acquisition costs, $0.5 million related to one-time severance expenses, and $0.3 million for commission expenses for which revenues will be earned in fiscal 2013. Adjusting for these one-time items, operating expenses for the quarter ended June 30, 2012, would have been $11.3 million (33% of revenue). For the year ended June 30, 2012, operating expenses of $49.5 million included $1.5 million of NetBenefit acquisition related costs, $0.5 million of one-time severance expenses, and $0.3 million in commission expenses relating to bookings for which revenues will not be generated until the next fiscal year. Normalizing for these items, operating expenses for the year ended June 30, 2012 would have been $47.2 million (35% of revenues). In addition, total operating expenses for the quarter ended June 30, 2012, are comprised of $5.7 million ($4.5 million in prior year) sales and marketing expenses, $6.5 million ($4.4 million in prior year) general and administrative expenses, and $1.4 million ($1.2 million in prior year) expenses in technology and customer relations. During the three months ended June 30, 2012, the company incurred $2.0 million related to its UK operations ($1.0 million in prior year), $0.7 million ($0.3 million in prior year) of which are categorized as general and administrative expenses, and $1.2 million ($0.8 million in prior year) of which are categorized as selling and advertising expenses. For the year ended June 30, 2012, operating expenses are comprised of $21.1 million ($17.2 million in prior year) of sales and marketing expenses, $23.2 million ($18.4 million in prior year) of general and administrative expenses, and $5.2 million ($4.9 million in prior year) in expenses for technology and customer relations. During the year ended June 30, 2012, the company incurred $6.1 million related to its operations in the United Kingdom ($3.6 million in prior year) which are included in operating expenses, $1.9 million of which are categorized as general and administrative expenses, $4.0 million of which are categorized as selling and marketing expenses, and $0.2 million of which are categorized as technology and customer relations expenses. Normalized EBITDA was $8.9 million for the three months ended June 30, 2012 and $34.3 million for the twelve months ended June 30, 2012, compared with $7.1 million and $25.7 million in the respective prior year periods. Interest expense increased to $2.9 million for the three months ended June 30, 2012, compared with $1.0 million for the three months ended June 30, 2011, primarily due to a $1.4 million loss on interest rate swaps ($0.4 million in prior year) and a $0.7 million write-off of loan origination fees (nil in prior year) related to the debt refinancing. During the fiscal year ended 2012, interest expense increased to $5.8 million for the year ended June 30, 2012, compared with $3.0 million for the year ended June 30, 2011. The increase in interest expense for the year ended June 30, 2012 was primarily due to $2.0 million loss on the Company's interest rate swap ($0.7 million loss in prior year) resulting from market fluctuations in interest rates, a $0.7 million write-off of loan origination fees as a result of debt refinancing related to the acquisition of NetBenefit, and higher interest expenses due to higher debt level. For the year ended June 30, 2012, PEER 1 Hosting recorded total income tax expense of $0.5 million compared with total income tax expenses of $1.4 million for the year ended June 30, 2011. The foreign exchange loss was at $1.2 million for the year ended June 30, 2012, compared to a gain of $3.1 million for the prior fiscal period. The Company also recorded an impairment expense in the amount of $0.3 million related to the write-off of certain intangible assets (nil in prior year). Net loss for the three-month period ended June 30, 2012 was $5.2 million and for year ended June 30, 2012 was $5.7 million, compared with a net loss of $0.3 million and net income of $1.2 million for the respective periods in 2011. The Company had working capital of $28.4 million at June 30, 2012, compared with working capital of $0.4 million as at June 30, 2011. The increase in working capital is primarily due to an additional drawdown on the credit facilities in relation to the acquisition of NetBenefit, which took place subsequent to the balance sheet date on July 1, 2012. The increase is partly offset by investments in property, plant and equipment. The Company anticipates current liquidity and cash generated from operations to be sufficient to fund operations for the foreseeable future. As at June 30, 2012, the Company had available $45.5 million under its $151.0 million credit facilities and an additional $25.0 million available under the accordion feature of its credit agreement. PEER 1 Hosting had 126,021,055 common shares issued and outstanding as at June 30, 2012.

EBTITDA Reconciliation

  	  
 					3 months ended		Years ended 
  					30-Jun	30-Jun		30-Jun	30-Jun
(in $ millions)				2012(1) 2011(1)		2012(1)	2011(1) 
Net profit (loss)			$ (5.2) $ (0.3)		$ (5.7)	$ 1.2 
Finance expense				2.9	1.0		5.8	3.0 
Depreciation and amortization		8.1	5.5		27.2	19.9 
Income tax expense			0.1	0.6		0.5	1.3 
Stock-based compensation		0.4	0.4		3.1	3.3 
Foreign exchange loss (gain)		0.5	(0.1)		1.3	(3.0) 
Acquisition costs			1.5	-		1.5	- 
Other non-operating expenses(2) 	0.6	-		0.6	- 
Normalized EBITDA			$ 8.9	$ 7.1		$ 34.3	$ 25.7

(1) Amounts have been prepared and restated to IFRS
(2) Other non-operating expenses for the year ended June 30, 2012 consist of one-time severance costs of $0.5 million, the write-off of intangible assets of $0.2 million, and an offsetting gain on disposal of assets of $0.1 million.

Conference Call
PEER 1 Hosting will hold a conference call on Monday, September 24, 2012 at 5:30pm Eastern Time (ET), to discuss the results for the fourth quarter and full year fiscal 2012. The Company's full Financial Statements and Management's Discussion and Analysis are available on its website at http://www.peer1.com/investors. To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. The conference call will be archived for replay until Monday October 1, 2012, at midnight. To access the archived conference call, dial (416) 849-0833 or 1.855.859.2056 and enter the reservation number 31897653 followed by the number sign. A live audio webcast of the conference call will be available at: http://www.newswire.ca/en/webcast/detail/1037423/1126143 Please connect at least 10 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.

Non-IFRS Measures
PEER 1 Hosting reports normalized EBITDA because it is a key measure used by management to evaluate the Company's performance. PEER 1 Hosting believes that normalized EBITDA is useful supplemental information, as it provides an indication of the results generated by PEER 1 Hosting's main business activities. Normalized EBITDA is not a recognized measure under IFRS, and accordingly investors are cautioned that normalized EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of financial performance of PEER 1 Hosting, or as a measure of the company's liquidity and cash flows. PEER 1 Hosting's method of calculating normalized EBITDA may differ from other issuers and, accordingly, normalized EBITDA may not be comparable to similar measures presented by other issuers. The schedule above sets out PEER 1 Hosting's normalized EBITDA calculations.

About PEER 1 Hosting
PEER 1 Hosting is one of the world's leading IT hosting providers. The company is built on two obsessions: Ping & People. Ping, represents its commitment to best-in-breed technology, founded on a high performance 10Gbps FastFiber Network™ connected by 17 state-of-the-art datacenters, 17 points-of-presence and 10 colocation facilities throughout North America and Europe. People, represents its commitment to delivering outstanding customer service to its more than 10,000 customers worldwide, backed by a 100 percent uptime guarantee and 24x7x365 FirstCall Support™. Info-Tech Research Group recently named PEER 1 Hosting as a "Champion" in its Canadian colocation and managed services Vendor Landscape report, recognizing the company's strength in product offerings and enterprise strategy in the global IT marketplace. PEER 1 Hosting's portfolio includes Managed Hosting, Dedicated Servers under the ServerBeach brand, Colocation and Cloud Services under the Zunicore brand.Founded in 1999, the company is headquartered in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit:www.peer1.com or www.peer1hosting.co.uk.

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PEER 1 Hosting to Hold Fiscal 2012 Year End Results Conference Call on Monday, September 24, 2012

admin — Mon, 17 Sep 2012 21:59:44 +0000

VANCOUVER, BC – September 17, 2012 – PEER 1 Network Enterprises, Inc. (TSX: PIX), doing business as PEER 1 Hosting, a leading provider of online IT hosting, announced today that it will host its fiscal 2012 year end results conference call on Monday, September 24 at 5:30 p.m. Eastern Time (ET). Prior to the conference call, PEER 1 will release its financial results over the newswire at approximately 4:00 p.m. ET, at which time the Financial Statements and Management’s Discussion and Analysis will also be posted to www.peer1.com/investors.

President and CEO Fabio Banducci and Executive Vice President and CFO Gary Sherlock will discuss PEER 1’s financial results for the quarter and then take questions from securities analysts.

To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191.The conference call will be archived for replay until Monday, October 1, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number: 31897653 followed by the number sign.

A live audio webcast of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/1037423/1126143

For further information:
For investor inquiries please contact David Feick, Equicom Group, (403) 218-2839, dfeick@equicomgroup.com.

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PEER 1 Hosting Announces Closing of NetBenefit Acquisition; Secures $150 Million in New Credit Facilities

admin — Tue, 03 Jul 2012 11:00:39 +0000

VANCOUVER, BC – July 3, 2012 – PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting ("PEER 1" or the "Company"), a leading provider of IT infrastructure, today announced that it has completed the acquisition of all outstanding shares in the capital of NetBenefit (UK) Limited ("NetBenefit"). The Company has also entered into a credit agreement with a syndicate of lenders led by National Bank of Canada ("NBC"), and including HSBC Bank Canada, HSBC Bank PLC, GE Canada, Business Development Bank, Bank of America, Laurentian Bank of Canada and Canadian Western Bank, for a US$100 million non-revolving term facility and a US$50 million revolving credit facility. In addition, an accordion feature allows PEER 1 Hosting to request an increase in the amount available under the revolving facility by a further US$25 million, bringing the total potential credit available under the facilities to US$175 million. The credit facilities are subject to customary conditions, the adherence to certain financial covenants, and are secured by the assets of the Company and its subsidiaries.

"We are pleased to welcome NetBenefit's employees, customers and other stakeholders to the PEER 1 Hosting family," said Fabio M. Banducci, President and CEO of PEER 1. "With the transaction completed we can focus on leveraging our enhanced scale and state-of-the-art infrastructure in the EMEA region to drive growth by offering our shared high quality solutions to both new and existing customers."

The four-year non-revolving term facility has a principal amount of US$100 million, all of which has been drawn at closing and will be used to repay all indebtedness under the Company's previous credit facilities and fund the acquisition of NetBenefit. Advances under the term loan are at Prime Rate, US Base Rate, GBP Base Rate, or LIBO Rate plus a margin of between 1.00% and 3.00% with the applicable margin dependent upon the Company's ratio of funded debt to EBITDA at the time the funds are drawn.

The four-year revolving credit facility has a principal amount of US$50 million, none of which has been drawn at closing, and will be available for general corporate purposes, and permitted acquisitions and distributions. Advances under the revolving facility will be at Prime Rate, US Base Rate, GBP Base Rate, or LIBO Rate plus a margin of between 1.00% and 3.00%, with the applicable margin dependent upon the Company's ratio of funded debt to EBITDA at the time the funds are drawn.

About PEER 1 Hosting
PEER 1 Hosting is one of the world's leading IT hosting providers. The company is built on two obsessions: Ping & People. Ping, represents its commitment to best-in-breed technology, founded on a high performance 10Gbps FastFiber Network™ connected by 18 state-of-the-art datacenters, 22 points-of-presence and 10 colocation facilities throughout North America and Europe. People, represents its commitment to delivering outstanding customer service to its more than 12,000 customers worldwide, backed by a 100 percent uptime guarantee and 24x7x365 FirstCall Support™. Info-Tech Research Group recently named PEER 1 Hosting as a "Champion" in its Canadian colocation and managed services Vendor Landscape report, recognizing the company's strength in product offerings and enterprise strategy in the global IT marketplace. PEER 1 Hosting's portfolio includes Managed Hosting, Dedicated Servers, Colocation and Cloud Services. Founded in 1999, the company is headquartered in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or www.peer1hosting.co.uk.

For investor inquiries please contact:
Nick Hurst
The Equicom Group
+1 (403) 218-2835
nhurst@equicomgroup.com

For media inquiries please contact:
Rajan Sodhi
PEER 1 Hosting
+1 (604) 909-6407
rsodhi@peer1.com

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PEER 1 Hosting to Acquire Leading UK-based Managed Hosting Provider

admin — Wed, 06 Jun 2012 11:00:00 +0000

VANCOUVER, June 6, 2012 - PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting ("PEER 1" or the "Company"), a leading provider of IT infrastructure, today announced it has signed a definitive agreement to acquire all of the outstanding shares in the capital of NetBenefit (UK) Limited ("NetBenefit"), a division of London-based Group NBT Limited, and a leading UK-based managed hosting company, for cash consideration of GBP25 million (US$38.5 million).

Transaction highlights:

The fully funded, all cash US$38.5 million transaction establishes PEER 1 as a leader in the UK managed hosting market;
The transaction is expected to deliver substantial financial benefits through the integration and migration of NetBenefit's business and servers into PEER 1's new 57,800 square foot flagship datacenter in the UK;
The transaction is expected to be immediately accretive to PEER 1's earnings per share excluding acquisition-related and integration costs;
PEER 1 will finance the acquisition with cash on hand and availability under the Company's existing credit facilities, including a US$25 million accordion facility that National Bank Financial Inc. ("NBF") has underwritten in support of the acquisition; and
Closing of the transaction is expected to occur on or before June 30, 2012.

"This transaction vaults us into a clear leadership position in the UK managed hosting market and further underscores our commitment to the dynamic and growing EMEA region," said Fabio M. Banducci, President and CEO of PEER 1. "NetBenefit shares our passion and reputation for quality and service and we are thrilled to welcome its employees, customers and other stakeholders to the PEER 1 Hosting family. We believe our combined operating scale will allow us to market our shared leading-edge solutions to an even broader customer base across the EMEA region."

Founded in 1995, NetBenefit is a division of London-based Group NBT Limited and is one of the UK's longest-operating and most experienced providers of managed hosting services to small and medium sized businesses. NetBenefit has approximately 50 employees providing nearly 700 customers with hosting solutions and professional 24 x 7 x 365 technical support, provisioned and deployed principally from two leased datacenters located in the Greater London area. For the fiscal year ending June 30, 2012, NetBenefit is forecast to generate approximately US$12.5 million in revenue and US$3.8 million in EBITDA. Following the acquisition, NetBenefit will provide managed hosting services back to Group NBT under a three year contract valued at approximately GBP1.5 million (US$2.3 million) per year.

With PEER 1's established operating presence in the UK and the opening of its 57,800 square foot green flagship datacenter in Portsmouth last fall, the Company has identified material cost synergies that can be realized from this acquisition, principally from datacenter lease cost savings, office rent savings, reduced support costs and certain headcount rationalization. PEER 1 plans to migrate NetBenefit's server deployments from their existing leased datacenter space to PEER 1's new wholly-owned datacenter on expiration of the datacenter leases. These cost synergies are expected to amount to approximately US$2.0 million and should be fully realized within 18 months following closing of the acquisition.

The Company expects to incur approximately US$2.6 million in one-time transaction, re-financing, and transition and integration costs, with the majority of these costs being recorded in the current fiscal fourth quarter and the first quarter of fiscal year 2013.

PEER 1 also announced today it has entered into an arrangement letter with NBF to act as sole lead arranger to syndicate US$150 million in new credit facilities. The new facilities will comprise a US$100 million committed term loan facility and a $US50 million committed revolving credit facility. In addition, the credit agreement will also include an un-committed accordion feature that will provide PEER 1 with up to a further USD $25 million, bringing the total potential credit available under the new credit facilities to US$175 million. The credit facilities are subject to completion of NBF's syndication, the preparation, execution and delivery of mutually acceptable amended and restated loan documentation, and other customary conditions and closing is expected to occur on June 30, 2012. The Company intends to use the proceeds of the new credit facilities for the repayment of existing credit facilities, capital expenditures, permitted acquisitions, and for working capital and general corporate purposes. "Securing increased credit facilities on favourable terms ensures we retain access to non-dilutive capital, providing us with the financial flexibility to act on further opportunities in the wake of this transaction," said Gary N. Sherlock, Executive Vice President and Chief Financial Officer of PEER 1. "We continue to evaluate an array of initiatives to grow both organically and through acquisition in multiple geographies, domestic and international."

Conference Call and Webcast Details
PEER 1 will hold a conference call on Wednesday, June 6, 2012 at 11:00 a.m. Eastern Time, to provide further details on the transaction.

To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. The conference call will be archived for replay until Wednesday June 13, 2012, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 88591106 followed by the number sign.

A live audio webcast of the conference call and slide presentation will be available at: http://event.on24.com/r.htm?e=471933&s=1&k=BD609A5D10EF33E9240AD7AD1B640257. Please connect at least 10 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.

About NetBenefit
Established in 1995, NetBenefit is one of the UK's most experienced managed hosting companies. NetBenefit specialises in providing tailored managed hosting solutions that deliver security, resilience and online performance for business critical websites, applications and online advertising campaigns. NetBenefit has evolved with the internet to its current position today as a leading provider of bespoke, flexible managed hosting solutions to well known brands, while remaining small enough to be committed to the success of all its customers. Net Benefit's team consists of experienced consultants, pre-sales, project managers, technical architects and engineers, dedicated to helping guarantee the online success of customer businesses. They are focused on delivering hosting peace of mind so that customers can focus on what they do best.

About PEER 1 Hosting
PEER 1 Hosting is one of the world's leading IT hosting providers. The company is built on two obsessions: Ping & People. Ping, represents its commitment to best-in-breed technology, founded on a high performance 10Gbps FastFiber Network™ connected by 18 state-of-the-art datacenters, 22 points-of-presence and 10 colocation facilities throughout North America and Europe. People, represents its commitment to delivering outstanding customer service to its more than 10,000 customers worldwide, backed by a 100 percent uptime guarantee and 24x7x365 FirstCall Support™. Info-Tech Research Group recently named PEER 1 Hosting as a "Champion" in its Canadian colocation and managed services Vendor Landscape report, recognizing the company's strength in product offerings and enterprise strategy in the global IT marketplace. PEER 1 Hosting's portfolio includes Managed Hosting, Dedicated Servers under the ServerBeach brand, Colocation and Cloud Services under the Zunicore brand. Founded in 1999, the company is headquartered in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or www.peer1hosting.co.uk.

Forward Looking Statements
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, the transaction might not close, the potential impact on the business of NetBenefit due to the uncertainty about the acquisition, the retention of key employees of NetBenefit, the ability of PEER 1 to successfully integrate NetBenefit and to achieve the anticipated synergies, general economic conditions, changes in technology, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in PEER 1's public filings with securities regulatory authorities. Any forward looking statements in this release are based on the information about NetBenefit currently available to PEER 1, which is subject to change, and PEER 1 will not necessarily update the information, except as required by law.

For further information:

For investor inquiries please contact:

Nick Hurst
The Equicom Group
+1 (403) 218-2835
nhurst@equicomgroup.com

For media inquiries please contact:

Rajan Sodhi
PEER 1 Hosting
+1 (604) 909-6407
rsodhi@peer1.com

By-Line:

-- COMPANY SECURES US$150 MILLION IN NEW CREDIT FACILITIES --

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PEER 1 Hosting Reports Record Fiscal 2012 Third Quarter Results

admin — Wed, 09 May 2012 19:01:32 +0000

PEER 1 Hosting Reports Record Fiscal 2012 Third Quarter Results

VANCOUVER, BC – May 9, 2012 – PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting (PEER 1 or the "Company"), a leading provider of online IT infrastructure, today announced its results for the three and nine months ended March 31, 2012. All amounts are stated in US dollars unless otherwise noted.

Selected Financial Highlights Comparing the Quarters Ended March 31, 2012 and 2011

Revenue increased 19% to $34.21 million from $28.73 million;
Gross profit increased 23% to $13.24 million from $10.73 million;
Operating profit increased 395% to $1.13 million from $0.23 million;
Normalized EBITDA increased 33% to $8.9 million from $6.7 million; and
Net income was $1.06 million compared to a net loss of $0.27 million.

Selected Highlights for the Third Quarter and Period Subsequent to Quarter-End

Successful migration of servers and clients to PEER 1's new 57,800 square foot state-of-the-art datacenter in Portsmouth, UK where PEER 1 now offers scalable managed hosting, dedicated hosting, colocation, and cloud services in one of the greenest datacenters in the country;
Entry into a lease for additional data center space in the Company's existing Los Angeles facility. This additional space will allow the Company to offer up to approximately 3,000 servers of additional capacity to its high end managed and dedicated hosting customers that demand a West coast presence; and
Naming of Magento, a leading eCommerce platform provider and division of X.commerce, Inc., an eBay Inc. (NASDAQ: EBAY) company, as the winner of the Company's 2011 Partner of the Year Award.

"During the quarter we successfully completed the migration of servers into POD A at our new flagship UK data centre and secured additional capacity on the U.S. west coast to support our continued growth," said Fabio Banducci, President and CEO of PEER 1 Hosting. "Our record financial results this quarter reflect the significant strategic investment we have made in expanding our infrastructure both in the North America and Europe over the last several quarters, which will help support additional growth in the future."

Financial Review for the Three and Nine Months Ended March 31, 2012 and 2011
Revenue increased to $34.21 million (19%) for the three months ended March 31, 2012 from $28.73 million for the three months ended March 31, 2011. The increase in revenue is attributable to organic growth and partly offset by the effect of the decrease in value of the Canadian dollar against the US dollar. When adjusted for the exchange rates in effect during the period, revenue for the three months ended March 31, 2012 increased to $34.34 million (20%). Revenue increased to $99.34 million (20%) for the nine months ended March 31, 2012 from $82.94 million for the nine months ended March 31, 2011. The increase in revenue is attributable to organic growth and the effect of the increase in value of the Canadian dollar against the US dollar. When adjusted for the exchange rates in effect during the period, revenue for the nine months ended March 31, 2012 increased to $99.17 million (20%).

Colocation revenue increased to $4.53 million and $13.36 million for the three and nine months ended March 31, 2012, respectively, compared with $4.20 million and $11.23 million for the three and nine months ended March 31, 2011, respectively. The increase in colocation revenue is attributable to organic growth as well as the changes in the value of the Canadian dollar against the US dollar. The effect on revenues from the changes in value of the Canadian dollar against the US dollar were ($0.07) million and $0.10 million for the three and nine months ended March 31, 2012, respectively.
Bandwidth revenue increased to $2.46 million and $7.11 million for the three and nine months ended March 31, 2012, respectively, compared with $2.21 million and $6.69 million for the three and nine months ended March 31, 2011, respectively. The increase in bandwidth revenue for the three and nine months ended March 31, 2012 is attributable to organic growth and the changes in value of the Canadian dollars against the US dollar partly offset by pricing pressures in the market. The effect on revenue from the changes in value of the Canadian dollar against the US dollar were ($0.03) million and $0.05 million for the three and nine months ended March 31, 2012, respectively.

Hosting services revenues increased to $25.49 million and $73.91 million for the three and nine months ended March 31, 2012, respectively, from $20.66 million and $60.44 million for the three and nine months ended March 31, 2011, respectively. The increase for the three and nine months ended March 31, 2012 is attributable to organic growth. Hosting services revenues have not been materially impacted by foreign exchange effects as virtually all Hosting services sales are currently denominated in US dollars.
PEER 1 Hosting's Canadian operations accounted for $9.39 million and $26.16 million of revenue for the three and nine months ended March 31, 2012, respectively, compared with $6.97 million and $18.51 million of revenue for the three and nine months ended March 31, 2011, respectively. These changes are related to organic growth, unfavorable foreign exchanges effects of $0.10 million for the three months ended March 31, 2012, and favourable foreign exchange effects of $0.16 million for the nine months ended March 31, 2012.
Cost of sales increased by $2.98 million for the three months ended March 31, 2012 from $18.00 million for the three months ended March 31, 2011. During the three months ended March 31, 2012 and March 31, 2011, respectively, the Company incurred costs $1.96 million and $1.25 million related to its operations in the United Kingdom, which are included in cost of sales. Cost of sales as a percentage of revenue decreased to 61% for the three months ended March 31, 2012, from 63% for the three months ended March 31, 2011. Cost of sales increased by $8.66 million for the nine months ended March 31, 2012 from $51.27 million for the nine months ended March 31, 2011. During the nine months ended March 31, 2012 and March 31, 2011, respectively, the Company incurred costs of $5.26 million and $3.13 million related to its operations in the United Kingdom. Cost of sales as a percentage of revenue decreased to 60% for the nine months ended March 31, 2012 from 62% for the nine months ended March 31, 2011.

The increase in cost of sales for the three months ended March 31, 2012 compared with the same period in the prior year is primarily due to increased depreciation costs of $1.86 million, increased labor cost of $0.38 million, increased power costs of $0.20 million, increased software license costs of $0.27 million, increased bandwidth costs of $0.29 million, and increased repair and maintenance of $0.02 million.
The increase in cost of sales for the nine months ended March 31, 2012 compared with the same period in the prior year is primarily due to increased depreciation costs of $4.25 million, increased rent costs of $0.62 million, increased labor costs of $0.99 million, increased power costs of $0.55 million, increased software license costs of $1.33 million, increased bandwidth costs of $0.45 million, and increased repair and maintenance of $0.32 million.

Operating expenses increased to $12.11 million for the three months ended March 31, 2012 from $10.50 million for the three months ended March 31, 2011. Operating expenses as a percentage of revenue decreased to 35% for the three months ended March 31, 2012 from 37% for the three months ended March 31, 2011. The increase in operating expenses for the three months ended March 31, 2012 is largely attributable to $0.94 million higher staff and training cost, and increased bonus expenses of $0.32 million. Total operating expenses for the three months ended March 31, 2012 is comprised of $5.60 million (2011: $4.74 million) sales and marketing expenses, $5.13 million (2011: $4.49 million) general and administrative expenses, and $1.37 million (2011: $1.27 million) in other operating expenses for technology and customer relations. During the three months ended March 31, 2012 and March 31, 2011, respectively, the Company incurred expenses of $1.60 million and $0.97 million related to its United Kingdom operations which are included in operating expenses, $0.44 million and $0.33 million of which are categorized as general and administrative expenses, and $1.10 million and $0.63 million of which are categorized as selling and marketing expenses.

Operating expenses increased to $35.93 million for the nine months ended March 31, 2012 from $30.34 million for the nine months ended March 31, 2011. Operating expenses as a percentage of revenue decreased to 36% for the nine months ended March 31, 2012 compared with 37% for the nine months ended March 31, 2011. The increase in operating expenses for the nine months ended March 31, 2012 is largely attributable to $2.66 million higher staff and training cost, increased commission expenses of $0.51 million, increased amortization expense of $0.57 million, increased bonus expenses of $0.89 million, increased bad debt expense of $0.33 million, in part offset by lower stock based compensation of $0.16 million. Total operating expenses for the nine months ended March 31, 2012 are comprised of $15.41 million (2011: $12.67 million) sales and marketing expenses, $16.73 million (2011: $14 million) general and administrative expenses, and $3.79 million (2011: $3.67 million) in other operating expenses for technology and customer relations. During the nine months ended March 31, 2012 and March 31, 2011, respectively, the company incurred expenses of $4.13 and $2.57 million related to its United Kingdom operations which are included in operating expenses, $1.24 million and $0.98 million of which are categorized as general and administrative expenses, and $2.78 million and $1.57 million of which are categorized as selling and marketing expenses.
Normalized EBITDA was $8.94 million for the three months ended March 31, 2012, compared with $6.71 million in the prior year period.

Net income for the third quarter ended March 31, 2012 was $1.06 million, compared to a net loss of $0.27 million for the same period in 2011.
The Company had a working capital deficit of $10.22 million as at March 31, 2012 compared to a working capital of $0.44 million as at June 30, 2011. The increase in working capital deficit is primarily due to the use of cash to fund the UK expansion and the increase in trade payables primarily due to timing. As at March 31, 2012, the Company had $12.29 million available under its $75.00 million credit facilities. In addition, the Company also has a $25.00 million accordion feature available that is subject to syndicate approval.

PEER 1 Hosting had 124,315,167 common shares issued and outstanding as at March 31, 2012.

EBITDA Reconciliation
(unaudited - prepared by management)	

(in $ thousands)                 Three Months Ended

                                 31-Mar-12	    31-Mar-11
		
Net Profit	                     1,062		(272)
Income tax expense                     241  		 (12)
Interest expense                       643		1,090  
Amortization - licences, 
fixed assets and deferred 
network costs                        7,293		5,391  
EBITDA                               9,239		6,197  
Stock based compensation               520		  553  
Foreign exchange gain                (636)              (567)
Gain on disposal of assets            (60)                (8)
Reverse of sales tax provisions      (122)                  -   
Service Level Arrangement Credit         -                161 
Commission - One time                    -                375 
Normalized EBITDA                    8,941              6,711

Conference Call

PEER 1 Hosting will hold a conference call on Wednesday, May 9, 2012 at 5:30pm Eastern Time (ET), to discuss the results for the third quarter of fiscal 2012. The Company's full Financial Statements and Management's Discussion and Analysis are available on its website at http://www.peer1.com/investors.
To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. The conference call will be archived for replay until Wednesday May 16, 2012, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 76257835 followed by the number sign.
A live audio webcast of the conference call will be available at:
http://www.newswire.ca/en/webcast/detail/962463/1032231
Please connect at least 10 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.

Non-IFRS Measures

PEER 1 Hosting reports EBITDA because it is a key measure used by management to evaluate the Company's performance. PEER 1 Hosting believes that EBITDA is useful supplemental information, as it provides an indication of the results generated by PEER 1 Hosting's main business activities prior to taking into consideration how those activities are financed and expensed. EBITDA is not a recognized measure under IFRS, and accordingly investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of financial performance of PEER 1 Hosting, or as a measure of the company's liquidity and cash flows. PEER 1 Hosting's method of calculating EBITDA may differ from other issuers and, accordingly, EBITDA may not be comparable to similar measures presented by other issuers. The schedule above sets out PEER 1 Hosting's EBITDA calculations.

About PEER 1 Hosting

PEER 1 Hosting is one of the world's leading IT hosting providers. The company is built on two obsessions: Ping & People. Ping, represents its commitment to best-in-breed technology, founded on a high performance 10Gbps FastFiber Network™ connected by 18 state-of-the-art datacenters, 22 points-of-presence and 10 colocation facilities throughout North America and Europe. People, represents its commitment to delivering outstanding customer service to its more than 10,000 customers worldwide, backed by a 100 percent uptime guarantee and 24x7x365 FirstCall Support™. Info-Tech Research Group recently named PEER 1 Hosting as a "Champion" in its Canadian colocation and managed services Vendor Landscape report, recognizing the company's strength in product offerings and enterprise strategy in the global IT marketplace. PEER 1 Hosting's portfolio includes Managed Hosting, Dedicated Servers under the ServerBeach brand, Colocation and Cloud Services under the Zunicore brand. Founded in 1999, the company is headquartered in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit:www.peer1.com or www.peer1hosting.co.uk.

Forward Looking Statements

Nick Hurst
The Equicom Group
+1 (403) 218-2835
nhurst@equicomgroup.com

For media inquiries please contact:
Marcela Peake
PEER 1 Hosting
+1 (604) 909-6428
mpeake@peer1.com

Click here for the full release

By-Line:

PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting (PEER 1 or the "Company"), a leading provider of online IT infrastructure, today announced its results for the three and nine months ended March 31, 2012.

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PEER 1 Hosting to Hold Third Quarter Results Conference Call on Wednesday, May 9, 2012

admin — Wed, 02 May 2012 22:24:59 +0000

VANCOUVER, BC – May 2, 2012 – PEER 1 Network Enterprises, Inc. (TSX: PIX), doing business as PEER 1 Hosting, a leading provider of online IT hosting, announced today that it will host its third quarter fiscal 2012 results conference call on Wednesday, May 9 at 5:30 p.m. Eastern Time (ET). Prior to the conference call, PEER 1 will release its financial results over the newswire at approximately 4:00 p.m. ET, at which time the Financial Statements and Management’s Discussion and Analysis will also be posted to www.peer1.com/investors.

President and CEO Fabio Banducci and Executive Vice President and CFO Gary Sherlock will discuss PEER 1’s financial results for the quarter and then take questions from securities analysts.

To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191.The conference call will be archived for replay until Wednesday, May 16, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number: 76257835 followed by the number sign.

A live audio webcast of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/962463/1032231
Please connect at least 10 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.

About PEER 1 Hosting
PEER 1 Hosting believes in the limitless opportunity of the Internet, and the business growth potential it provides for its more than 10,000 customers. As a global online IT hosting provider, PEER 1 Hosting offers a reliable high performance Internet network supporting scalable managed hosting, dedicated hosting through the ServerBeach brand, and colocation solutions. Backed by its 100 percent uptime guarantee and 24x7x365 FirstCall Support™, PEER 1 Hosting ensures customers’ online presence is always fast, always available. Since 1999, PEER 1 Hosting has grown to include 18 state-of-the-art data centres and points-of-presence throughout North America and Europe. The company’s headquarters are in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or http://www.peer1hosting.co.uk.

For further information:
For media inquiries please contact Marcela Peake at PEER 1, (604) 909-6428, mpeake@peer1.com;
For investor inquiries please contact David Feick, Equicom Group, (403) 218-2839, dfeick@equicomgroup.com.

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PEER 1 Hosting Reports Fiscal 2012 Second Quarter Results

admin — Wed, 08 Feb 2012 13:00:00 +0000

Selected Financial Highlights Comparing the Quarters Ended December 31, 2011 and 2010

Revenue increased 20.56% to $33.62 million from $27.89 million;
Gross profit increased 23.37% to $13.48 million from $10.90 million;
Operating profit decreased 38.23% to $0.53 million from $0.86 million;
Normalized EBITDA was $8.6 million, up from $6.4 million; and
Net loss was $0.25 million compared to net income of $0.74 million.

Selected Highlights for Second Quarter and Period Subsequent to Quarter-End

Opened new 57,800 square foot green datacenter in Portsmouth, UK offering scalable managed hosting, dedicated hosting and colocation services in one of the greenest datacenters in the country. Within easy reach of London, the center has 11MVA of available power, room for 20,000 servers, and provides a direct connection to PEER 1 Hosting's 10Gb FastFiber Network™; and
Launched public cloud division Zunicore and Zunicore Cloud Hosting product focused on the business professional and offering users a high degree of control and flexibility through customizable resource pools, hands-free auto-scaling, and transparent pricing.

"Our key achievement in the second quarter was the commissioning of our new flagship UK data centre and we rapidly worked to migrate servers and clients to our new facility, with the goal of aligning our cost structures across international operating regions," said Fabio Banducci, President and CEO of PEER 1 Hosting. "We continue to see meaningful improvements in revenues as new facilities are completed and opened to customer deployments. Our growing portfolio of state of the art data centres will provide a strong backbone for additional growth in the quarters ahead." Financial Review for the Three and Six Months Ended December 31, 2011 and 2010

Revenue increased to $33.62 million (20.56%) for the three months ended December 31, 2011 from $27.88 million for the three months ended December 31, 2010. Revenue increased to $65.13 million (20.13%) for the six months ended December 31, 2011 from $54.21 million for the six months ended December 31, 2010. The increases in revenue are primarily attributable to organic growth and the effect of the increase in value of the Canadian dollar against the US dollar. When adjusted for the exchange rates in effect during the period, revenue for the three months ended December 31, 2011 was $33.68 million and $64.84 million for the six month period. Taking into account the effect of the differing exchange rates between the Canadian and US dollars for the comparative period, revenue increased by 20.79% and 19.59 % for the three and six-month periods ended December 31, 2011.

Colocation revenue increased to $4.31 million and $8.82 million for the three and six months ended December 31, 2011, respectively, compared with $3.55 million and $7.03 million for the three and six months ended December 31, 2010. The increase in colocation revenue is attributable to organic growth as well as the change in the value of the Canadian dollar against the US dollar. The effect on revenue from the change in value of the Canadian dollar against the US dollar was ($0.04) million and $0.16 million for the three and six months ended December 31, 2011, respectively.

Bandwidth revenue increased to $2.32 million and $4.65 million for the three and six months ended December 31, 2011, respectively, compared with $2.28 million and $4.48 million for the three and six months ended December 31, 2010. The increase in bandwidth revenue for the three and six months ended December 31, 2011 is primarily attributable to organic growth and the change in value of the Canadian dollars against the US dollar. The effect on revenue from the change in value of the Canadian dollar against the US dollar was ($0.02) million and $0.09 million for the three and six months ended December 31, 2011, respectively.

Hosting Services revenues increased to $25.29 million and $48.42 million for the three and six months ended December 31, 2011, respectively, from $20.54 million and $39.78 million for the three and six months ended December 31, 2010. The increase for the three and six months ended December 31, 2011 is attributable to organic growth. Hosting Services revenues have not been materially impacted by foreign exchange effects as virtually all Hosting Services sales are currently denominated in US dollars.

PEER 1 Hosting's Canadian operations accounted for $8.46 million and $16.77 million of revenue for the three and six months ended December 31, 2011, respectively, compared with $6.06 million and $11.54 million of revenue for the three and six months ended December 31, 2010. This change is primarily related to organic growth partly offset by unfavourable foreign exchange effects of $0.06 million for the three months ended December 31, 2011, and organic growth and favourable foreign exchange effects of $0.27 million for the three and six months ended December 31, 2011.

Cost of sales increased by $3.20 million for the three months ended December 31, 2011 from $17.0 million for the three months ended December 31, 2010. During the three months ended December 31, 2011 and December 31, 2010, respectively, the Company incurred costs of $1.96 million and $1.05 million related to its operations in the United Kingdom, which are included in cost of sales. Cost of sales as a percentage of revenue decreased to 60.0% for the three months ended December 31, 2011 from 60.91% for the three months ended December 31, 2010. Cost of sales increased by $5.68 million for the six months ended December 31, 2011 from $33.27 million for the six months ended December 31, 2010. During the six months ended December 31, 2011 and December 31, 2010, respectively, the Company incurred costs of $3.30 million and $1.88 million related to its operations in the United Kingdom, which are included in cost of sales. Cost of sales as a percentage of revenue decreased to 59.81% for the three months ended December 31, 2011 from 61.37% for the three months ended December 31, 2010.

The increase in cost of sales for the three months ended December 31, 2011 compared to the same period in the prior year is primarily due to increased depreciation costs of $1.33 million, increased labor cost of $0.49 million, increased rent costs of $0.34 million, increased power costs of $0.06 million, increased software license costs of $0.56 million, increased bandwidth costs of $0.15 million, and increased repair and maintenance of $0.14 million.

The increase in cost of sales for the six months ended December 31, 2011 compared to the same period in the prior year is primarily due to increased depreciation costs of $2.38 million, increased rent costs of $0.66 million, increased labor costs of $0.60 million, increased power costs of $0.35 million, increased software license costs of $1.06 million, increased bandwidth costs of $0.16 million, and increased repair and maintenance of $0.30 million.

Operating expenses increased to $12.92 million for the three months ended December 31, 2011 from $10.04 million for the three months ended December 31, 2010. Operating expenses as a percentage of revenue increased to 38.42% for the three months ended December 31, 2011 from 36.0% for the three months ended December 31, 2010. The increase in operating expenses for the three months ended December 31, 2011 is largely attributable to $0.85 million higher staff and training cost, increased commission expenses of $0.38 million, increased amortization expense of $0.27 million, increased bad debt expense of $0.11 million, increased stock based compensation of $0.89 million. Total operating expenses for the three months ended December 31, 2011 are comprised of $5.05 million (2010: $3.98 million) sales and marketing expenses, $6.65 million (2010: $4.85 million) general and administrative expenses, and $1.2 million (2010: $1.21 million) in other operating expenses for technology and customer relations. During the three months ended December 31, 2011 and December 31, 2010, respectively, the company incurred expenses of $1.32 and $0.84 million related to its United Kingdom operations which are included in operating expenses, $0.40 million and $0.40 million of which are categorized as general and administrative expenses and $0.88 million and $0.47 million of which are categorized as selling and marketing expenses.

Operating expenses increased to $23.82 million for the six months ended December 31, 2011 from $19.84 million for the six months ended December 31, 2010. Operating expenses as a percentage of revenue were flat at 36.58% for the six months ended December 31, 2011 compared to 36.59% for the six months ended December 31, 2010. The increase in operating expenses for the six months ended December 31, 2011 is largely attributable to $1.73 million higher staff and training cost, increased commission expenses of $0.57 million, increased amortization expense of $0.53 million, increased bad debt expense of $0.30 million, in part offset by lower stock based compensation of $0.13 million. Total operating expenses for the six months ended December 31, 2011 are comprised of $9.80 million (2010: $7.93 million) sales and marketing expenses, $11.60 million (2010: $9.51 million) general and administrative expenses, and $2.42 million (2010: $2.40 million) in other operating expenses for technology and customer relations. During the six months ended December 31, 2011 and December 31, 2010, respectively, the company incurred expenses of $2.52 million and $1.60 million related to its United Kingdom operations which are included in operating expenses, $0.80 million and $0.65 million of which are categorized as general and administrative expenses and $1.68 million and $0.94 million of which are categorized as selling and marketing expenses.

Normalized EBITDA was $8.6 million for the three months ended December 31, 2011, compared with $6.40 million in the prior year period.

Net loss for the second quarter ended December 31, 2011 was $0.25 million, compared with net income of $0.74 million for the same period in 2010.

The Company had working capital deficit of $7.3 million at December 31, 2011 compared to working capital of $0.44 million as at June 30, 2011. The increased in working capital deficit is primarily due to expenditure related to the UK expansion. As at December 31, 2011, the Company had available $12.34 million under its $75 million credit facilities.

PEER 1 Hosting had 123,879,665 common shares issued and outstanding as at December 31, 2011.

EBITDA Reconcilation
(unaudited - prepared by management)		
(in $ thousands)			Three Months Ended
				31-Dec-11		31-Dec-10
		
Net Profit (loss)		(249)			736
Income tax expense		623			226
Interest expense		745			474
Amortization - licences, 
fixed assets and deferred 
network costs			6,166			4,564
Stock based compensation	1,875			982
Loss (gain) on disposal of 
assets				(10)			(12)
Foreign exchange loss		(578)			(590)
EBITDA				8,572			6,380
Settlement of legal claim	-			24
Normalized EBITDA		8,572			6,404

Conference Call

PEER 1 Hosting will hold a conference call on Wednesday, February 8, 2012 at 5:30pm Eastern Time (ET), to discuss the results for the second quarter of fiscal 2012. The Company's full Financial Statements and Management's Discussion and Analysis are available on its website at http://www.peer1.com/investors.

To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. The conference call will be archived for replay until February 15, 2012, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 48533328 followed by the number sign.

A live audio webcast of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/912953/974405

Non-IFRS Measures

About PEER 1 Hosting

PEER 1 Hosting believes in the limitless opportunity of the Internet, and the business growth potential it provides for its more than 10,000 customers. As a global online IT hosting provider, PEER 1 Hosting offers a reliable high performance Internet network supporting scalable managed hosting, dedicated hosting through the ServerBeach brand, and colocation solutions. Backed by its 100 percent uptime guarantee and 24x7x365 FirstCall Support™, PEER 1 Hosting ensures customers' online presence is always fast, always available. Since 1999, PEER 1 Hosting has grown to include 18 state-of-the-art data centers and points-of-presence throughout North America and Europe. The company's headquarters are in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or www.peer1hosting.co.uk.

Forward Looking Statements

For investor inquiries please contact:

Nick Hurst
The Equicom Group
+1 (403) 218-2835
nhurst@equicomgroup.com

For media inquiries please contact:

Marcela Peake
PEER 1 Hosting
+1 (604) 909-6428
mpeake@peer1.com

Click here for the full release

By-Line:

PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting, a leading provider of online IT infrastructure, today announced its results for the three and six months ended December 31, 2011. All amounts are stated in US dollars unless otherwise noted.

Use as Press Release:

PEER 1 Hosting to Hold Second Quarter Results Conference Call on February 8, 2012

mserres — Wed, 01 Feb 2012 12:22:48 +0000

VANCOUVER, Feb. 1, 2012 /CNW/ – PEER 1 Network Enterprises, Inc. (TSX: PIX), doing business as PEER 1 Hosting, a leading provider of online IT hosting, announced today that it will host its second quarter fiscal 2012 results conference call on Wednesday, February 8 at 5:30 p.m. Eastern Time (ET). Prior to the conference call, PEER 1 will release its financial results over the newswire at approximately 4:00 p.m. ET, at which time the Financial Statements and Management's Discussion and Analysis will also be posted to www.peer1.com/investors.

President and CEO Fabio Banducci and Executive Vice President and CFO Gary Sherlock will discuss PEER 1's financial results for the quarter and then take questions from securities analysts.

To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191.The conference call will be archived for replay until Wednesday, February 15, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number: 48533328 followed by the number sign.

A live audio webcast of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/912953/974405

About PEER 1 Hosting

PEER 1 Hosting believes in the limitless opportunity of the Internet, and the business growth potential it provides for its more than 10,000 customers. As a global online IT hosting provider, PEER 1 Hosting offers a reliable high performance Internet network supporting scalable managed hosting, dedicated hosting through the ServerBeach brand, and colocation solutions. Backed by its 100 percent uptime guarantee and 24x7x365 FirstCall Support™, PEER 1 Hosting ensures customers' online presence is always fast, always available. Since 1999, PEER 1 Hosting has grown to include 18 state-of-the-art data centres and points-of-presence throughout North America and Europe. The company's headquarters are in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or www.peer1hosting.co.uk.

For further information:

For media inquiries please contact Marcela Peake at PEER 1, (604) 909-6428, mpeake@peer1.com;

For investor inquiries please contact Nick Hurst, Equicom Group, (403) 218-2835, nhurst@equicomgroup.com

Use as Press Release: