Mr. Zachariah Mathews reports

WI2WI CORPORATION REPORTS THIRD QUARTER RESULTS

Wi2Wi Corp. has released its unaudited condensed consolidated interim financial results for the three- and nine-month periods ended Sept. 30, 2014.

     
                                      STATEMENT OF RESULTS
                                (in thousands of U.S. dollars)

                                                       Three months to          Nine months to
                                                              Sept. 30,               Sept. 30,  
                                                       2014       2013        2014        2013

Revenue                                            $  2,061   $    860    $  4,699    $  3,488
Gross profit                                          1,063        316       2,372       1,361
Operating expenses
Research and development                                202        225         664         740
Selling, general and administrative                     661        713       1,858       3,208
Share listing expense                                     -          -           -       2,987
Net income/(loss)  from operations                      200       (622)       (150)     (5,574)
Income from transfer of technology                    1,688          -       1,688           -
Net income/(loss) and total comprehensive loss        1,860       (651)      1,426      (5,660)
Net income/(loss) per share, basic                 $   0.02   $  (0.01)   $   0.02    $  (0.07)
Net income/(loss) per share, diluted               $   0.00   $  (0.01)   $   0.00    $  (0.07)

Revenue

Revenue for the quarters ended Sept. 30, 2014, and 2013 was $2,061 and $860, respectively. Revenue increased by 139 per cent for the quarter ended Sept. 30, 2014, compared with the same period in 2013. The company was able to work with its suppliers and customers to fulfill backorders built up over the past six months.

Revenue for the nine months ended Sept. 30, 2014, and 2013 was $4,699 and $3,438, respectively. Revenue increased by 36 per cent for the nine-month period ended Sept. 30, 2014, compared with the same period in 2013. The company successfully resumed product builds and shipments in the third quarter of 2014.

The company had shippable backlog of approximately $2.1-million for the third quarter of 2014, a significant demand for its product. The company relies on its distribution network to sell its products, supported by Wi2Wi sales managers and the sales representative network that has been established in North America, the European Union and Asia.

Gross profit

Cost of revenues consists of the costs of parts; costs incurred with contract manufacturers to assemble and test the company's products; and the direct and indirect costs incurred to control and test the outsourced manufacturing and supply chain.

Gross profits for the third quarter ended Sept. 30, 2014, and 2013 were $1,063 (gross margin -- 51.5 per cent) and $316 (gross margin -- 36.7 per cent), respectively, an increase in gross profit of 236 per cent. The company's control over costs continues to improve the gross margin yield.

Gross profits for the nine-month period ended Sept. 30, 2014, and 2013 were $2,372 (gross margin -- 50.4 per cent) and $1,361 (gross margin -- 39.6 per cent), respectively, an increase in gross profit of 74 per cent.

The increase in margin is due to the continued efforts on manufacturing yield improvements, optimizing manufacturing batch sizes, successful efforts in manufacturing cost reductions and retaining the ASP of the products.

"We are excited about the third quarter results; Wi2Wi continues to show improvement from operations, form its current business. We are also excited about the conclusion of the acquisition of Precision Devices and are currently focusing on the integration of both operations. Results of combined operations will be reflected in our fourth quarter of 2014 results. The acquisition of Precision Devices strategically positions the company as a wireless integration solutions provider to the growing M2M [machine to machine] and IoT [Internet of Things] markets," stated Zachariah Mathews, chief executive officer of the company.

"The strategic decision to reorganize the company in early 2014 resulted in the exciting third quarter results. The company continue to invest in R&D to introduce new products and services to support the corporate vision of the company," commented Dr. Hans Black, the chairman of the board.

We seek Safe Harbor.