RAMTelecom's Ralph Misener. (Photo by Darren Brown, OBJ)

RAMTelecom posted stronger revenues and tighter losses in its first quarter as it successfully completed federal government deals and began generating sales through its global Internet protocol solutions segment.

The Ottawa-based satellite services company said revenues rose by 5.7 per cent to $1.2 million, while net losses narrowed to $146,658 or 0.9 cents per share from $241,072 or 1.7 cents per share.

The company also managed to become cash flow positive with $669, compared to negative cash flow of $62,954 a year earlier.

"This is a major milestone for the corporation and we will work hard to continue adding to the recurring revenue base," said RAMTelecom CEO Ralph Misener in a statement.

"We are confident that RAMTelecom will continue to increase its revenue base in its drive towards profitability."

The company's revenue growth was driven by a 45.6-per-cent increase in sales of satellite services, to $815,692, but the gain was offset by a 30.2-per-cent decline in product sales, to $433,741. RAMTelecom noted that the shift in revenue mix was due to its moving away from selling satellite products and towards providing broadband and voice communications services.

The company added that its new global IP business, which currently provides satellite services and product sales in northern Quebec mining regions, has started to generate revenues, and that several large mining companies are looking at starting this service during the summer mining season.

As well, RAMTelecom said, "The increase in Q1 sales is a result of being able to meet federal government requirements for product and satellite services within the time limits of their end-of-fiscal-year budgetary spending, as well as increased penetration in the oil and gas business opportunities."

The company noted that its second-quarter financials are expected to be softer than in the first quarter due to seasonal changes, but it was positive on its prospects for new deals with the federal government and several major Canadian telecom providers.