Sept. 17, 2003 - Managed hosting provider RagingWire Inc. said today that its operations are now free cash flow positive, marking a major milestone for the Sacramento, Calif. company.
The announcement follows a strong first half of 2003 in which RagingWire saw its customer base grow by 70 percent while its revenue increased 50 percent.
"Achieving predictable free-cash-flow-positive is a major milestone for RagingWire," said George Macricostas, CEO of RagingWire, which began operations in April 2001.
Bring "free cash flow positive" means that company generates more cash from operations than it needs to fund its operating costs, capital spending, working capital and debt obligations.
"This means quite a bit," said RagingWire president and co-founder Yatish Mishra, who noted that its enterprise customers focus on a provider's financial stability. "It has confirmed our business model and instilled confidence with our customers. It really does open a lot of doors for us."
RagingWire is also benefiting from industry turbulence, according to marketing director Doug Adams.
We have seen a tremendous increase in our (sales) funnel and our ability to attract enterprise customers," said Adams.
RagingWire was founded in May 2000 by Constantine "Deno" Macricostas, George Macricostas and Mishra, who had worked together at Photronics Inc. From the start, the trio understood that financial stability was a key issue for enterprise prospects.
"We're 100 percent self-funded, we have no debt whatsoever, and we maintain a cash reserve to ensure future stability," said Mishra.
RagingWire's sole facility spans just over 200,000 square feet, of which 30,000 square feet is finished data center space.