SAN FRANCISCO, CALIFORNIA — August 11, 2005 — Yipes Enterprise Services, Inc. (www.yipes.com), the pioneer in managed, end-to-end Ethernet solutions, today reported outstanding financial results for the six months ended June 30, 2005.

 

The privately held company stated its recurring revenue from enterprise customers, representing 90% of its total revenues, increased 26% compared to the same period in 2004, and 9% sequentially compared to the first quarter of 2005.

 

Yipes noted that it added 92 net new customers during the first half of 2005 bringing the company's total number of customers under long-term service contracts to 642. Yipes' blue-chip, multi-location customers now include 25% of the largest U.S. law firms and more than 40 of the largest financial exchanges and trading platforms. The average number of services per customer increased during the period to 3.3. Consistent with the quality of its customer base, Yipes' days sales outstanding are 37 and churn is less than 1.5% for the period.

 

"Our exceptional performance and top-line growth are consistent with our expectations,"said John Scanlon, chief executive officer of Yipes. "We continue to benefit from the prominent position that Ethernet services has taken in the communications industry, the quality of our customer base, the introduction of new services and our global reach."

 

Scanlon indicated that Yipes' customer-driven expansion into Europe, Asia and additional domestic markets, along with new product platform development such as FinancialConnect! and ExpressReach, effectively positions the company to continue its strong performance. In June 2005, Yipes was awarded the Ethernet Service Provider of the Year award for Outstanding Innovation.

 

"Yipes' unique service delivery platform continues to be adopted by leading enterprises and government agencies that require cost-effective, scalable and secure access to applications,"continued Scanlon. "We believe our growth will continue to be driven by application and network demand in the areas of electronic trading, medical imaging, synchronous replication, media delivery, e-delivery, document management for the legal industry, and network consolidation in the public sector. Increasingly, access to the major financial exchanges and hosted services for key vertical applications is a driver for customers selecting Yipes."

 

About Yipes:
Winner of the Metro Ethernet Forum 2005 Service Provider of the Year Award for Outstanding Innovation, Yipes Enterprise Services, Inc. is the leading global provider of managed, end-to-end Ethernet solutions for enterprise customers. Yipes offers a uniquely scalable suite of networking services that combine the speed, simplicity and cost effectiveness of native Ethernet with Yipes proprietary bandwidth-on-demand functionality. Yipes provides services in and between major metropolitan markets including: Boston, Chicago, Dallas, Denver, Hong Kong, Houston, Los Angeles, London, Miami, New York, Philadelphia, San Diego, San Francisco, San Jose, Seattle, and Washington DC. For more information, visit www.yipes.com.

 

Contact:
Keao Caindec
Yipes Vice President of Marketing
415 901 2203 phone
kcaindec@yipes.com