Mr. Randy Dewey reports

BAYLIN ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2018

Baylin Technologies Inc. has released its financial results for the three months ended Sept. 30, 2018.

Quarterly highlights

Key highlights for the three months ended Sept. 30, 2018, include the following:

• The company recorded revenue of $38.2-million in the third quarter of 2018, an increase of $11-million, or 40.7 per cent, over the third quarter of 2017.
• Gross profit of $16.2-million in the third quarter of 2018, an increase of $7.7-million over the third quarter of 2017. The gross margin for the third quarter of 2018 was 42.3 per cent, an improvement of 11 percentage points, compared with the same period last year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $7.1-million in the third quarter of 2018, compared with $3.1-million in the third quarter of 2017. Adjusted EBITDA for the third quarter of 2018 excludes certain non-recurring and one-time expenses of $2.3-million, which were primarily expenses related to the acquisition of Alga Microwave.
• Cash on hand at Sept. 30, 2018, was $19.1-million, a reduction of $16.1-million from Dec. 31, 2017. The decrease was primarily due to cash utilized for payment of a portion of the purchase price for Advantech Wireless and Alga Microwave, and an increase in non-cash working capital, offset by an increase in cash from a term loan and a bought deal public offering of subscription receipts and convertible debentures.
• Revenue in the embedded antennas and wireless infrastructure groups have continued to increase further, diversifying the company's revenue base.

"We are very pleased with the company's higher gross margins in the third quarter of 2018 due to a higher percentage of revenue from our wireless infrastructure products as well as the two acquisitions that we completed this year," commented Randy Dewey, Baylin Technologies' president and chief executive officer.

"Since completing the acquisition of Alga Microwave on July 11, 2018, we have been focused on moving Advantech Wireless's operations into Alga Microwave's facility, which we expect will result in cost reductions and improved manufacturing efficiencies," concluded Mr. Dewey.

Selected financial information of the company for the periods indicated is summarized in the attached table.

                                    SELECTED FINANCIAL INFORMATION
                               (in thousands, except per-share amounts)  
                                                                     
                                              Three months ended Sept. 30,   Nine months ended Sept. 30,
                                                    2018             2017         2018             2017 
                   
Revenue                                         $ 38,189         $ 27,140     $100,205         $ 67,290       
Gross profit                                      16,168            8,424       39,778           21,167       
Income (loss) before income taxes                 (1,104)             911       (4,931)          (3,518)      
Income tax expense                                   695               15        1,183              435          
Net income (loss)                                 (1,799)             896       (6,114)          (3,953)      
Basic and diluted income (loss) per share          (0.05)            0.04        (0.16)           (0.18)      
EBITDA                                             4,774            2,652        5,255            1,327        
Adjusted EBITDA                                    7,100            3,076       11,435            3,633             

A copy of the company's unaudited interim condensed consolidated financial statements for the three months ended Sept. 30, 2018, and corresponding management's discussion and analysis are available under the company's SEDAR profile.

Outlook

Management believes that the company has gained access to technology through the strategic acquisitions of Advantech Wireless and Alga Microwave, which will accelerate growth by broadening the company's product offering and better positioning the company for development of products for 5G (the fifth generation of cellular mobile communications).

Investor conference call

Baylin Technologies will hold a conference call on Nov. 1, 2018, at 8 a.m. ET to discuss its financial results for the three months ended Sept. 30, 2018. The call will be hosted by Mr. Dewey, Michael Wolfe, chief financial officer, and Daniel Kim, executive vice-president of corporate development. All interested parties are invited to participate using the dial-in details provided herein.

Date:  Nov. 1, 2018

Time:  8 a.m. ET

Dial-in numbers:  888-231-8192 or 647-427-7451

Conference ID:  6781418

About Baylin Technologies Inc.

Baylin Technologies is a diversified leading global wireless technology management company. Baylin Technologies focuses on research, design, development, manufacturing, and sales of passive and active radio frequency products and services. Baylin Technologies aspires to meet its customers' needs and anticipate the direction of the market.

We seek Safe Harbor.