Hostopia CEO Resigns and 4Q

Phone+ (where I am now a blogger) is reporting that "John Nemanic has resigned as chairman and director of Hostopia Inc. Nemanic, who has been Hostopia's chairman since 1999, said he wanted to devote more time to other opportunities. The resignation was effective Feb. 9. "It has been my great pleasure to have worked with Hostopia since the company's inception," Nemanic." Colin Campbell is Hostopia's CEO now.

Colin reported 4Q financials:

• Quarterly revenue increased 25% year over year -- to $5.6 million in the three months ended December 31, 2006.
• This growth in revenues was due to a 30% or 57,500 increase in the number of end-users hosted and serviced since December 31, 2005.
• At 12/31/2006, approximately 248,000 end-users were utilizing its services.
• Received $22M of net proceeds from our initial public offering (IPO) to invest in accelerating business growth.
• Cash flows from operations for the nine months ended December 31, 2006 totaled $2.8 million.
• Hostopia invested $2.1 million in capital assets and intellectual property during the same period.
• This resulted in net free cash flow of $0.7 million and when combined with the opening cash position as well as the $22 million in net IPO proceeds,
• Hostopia had $25.7 million in cash and cash equivalents available at December 31, 2006 to invest in its future business growth.