TORONTO -- (Business Wire)
Wi2Wi Corporation ("Wi2Wi" or the "Company") is pleased to announce its
unaudited condensed consolidated interim financial results for the three
and six month periods ending June 30, 2014.
Statement of results |
|
|
| Three months to |
|
|
| Six months to |
(in thousands of US dollars) |
|
|
| June 30, 2014 |
|
| June 30, 2013 |
|
|
| June 30, 2014 |
|
| June 30, 2013 |
| | | |
$
| |
$
| |
$
| |
$
|
| | | | | | | | | | | | | |
|
Revenue
|
|
|
|
1,403
|
|
|
1,324
|
|
|
|
2,638
|
|
| 2,577 |
Gross Profit
|
|
|
|
723
|
|
|
551
|
|
|
|
1,309
|
|
|
1,045
|
Operating expenses
| | | | | | | | | | | | | | |
Research and Development
| | | |
208
| | |
262
| | | |
462
| | |
515
|
Selling, general and administrative
|
|
460
|
|
|
958
|
|
|
|
1,197
|
|
|
2,495
|
Net income/(loss) before interest, income taxes and Share Listing
Expense
|
|
|
|
49
|
|
|
(669)
|
|
|
|
(350)
|
|
|
(4,952)
|
Net income/(loss) and Total Comprehensive Loss
|
|
|
|
12
|
|
|
(699)
|
|
|
|
(404)
|
|
|
(5,009)
|
Net income/(loss) per share, basic and diluted
|
|
|
|
$0.00
|
|
|
$(0.01)
|
|
|
|
$(0.00)
|
|
|
$(0.06)
|
Wi2Wi designs, manufactures and markets miniaturized embedded wireless
connectivity solutions (incorporating both hardware and software) for
premium industrial/medical, smart-home/smart building and government
markets worldwide. These products and value added services provide
highly integrated, multifunctional wireless sub systems for mobile
applications of all forms for mobile devices.
Revenue
Revenues for the
quarters ended June 30, 2014 and 2013 were $1,463 and $1,324,
respectively. Revenues increased by 10% for the quarter ended June 30,
2014, compared to the same period in 2013.
Revenue for the six month ended June 30, 2014 and 2013 were $2,638 and
$2,577, respectively. Revenues increased by 2.3% for the six month
period ended June 30, 2014, compared to the same period in 2013.
The company has resumed product builds and shipments in the second
quarter of 2014. The Company had shippable backlog of approximately $2.9
million for the second quarter of 2014 a significant demand for its
product. The Company relies on its distribution network to sell its
products, supported by the Wi2Wi Sales Managers and the sales
representative network that has been established in North America,
European Union and in 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, as well as
the direct and indirect costs incurred to control and test the
outsourced manufacturing and supply chain.
Gross profits for the second quarter ended June 30, 2014 and 2013 were
$746 (gross margin 51%) and $551 (gross margin-41.6%), respectively, an
increase in gross profit of 34%. Gross margins for the second quarter
continue to improve.
Gross profits for the six month period ended June 30, 2014 and 2013 were
$1,332 (gross margin 50.4%) and $1,045 (gross margin-40.55%),
respectively, an increase in gross profit of 27%.
The increase in margin is due to the continued efforts on manufacturing
yield improvements, Optimising manufacturing batch sizes, successful
efforts in manufacturing cost reductions and retaining the ASP of the
products
“In the second quarter, the Company went through a restructuring of its
operation and reduced its overheads, the full impact of which will be
evident in the last six months of 2014,” stated Zach Mathews, Chief
Operating Officer of the Company. “With the licensing of one the
products to our customer announced earlier this month, the Company has
additional working capital available for operations, and research and
development program. The Company will be introducing 1 to 2 new products
in late fourth quarter of 2014 and 4 to 5 new products in 2015.”
Wi2Wi also announces that it has entered into an agreement to issue
shares to settle an amount of CDN$79,950 owed to Red Cloud Mining
Capital Inc. Wi2Wi will be issuing 444,171 common shares at a deemed
price of CDN$0.18/share in settlement of the above-noted amount. The
issuance of these common shares is subject to TSXV approval.
For further information, please contact:
Prakash Hariharan
Interim
Chief Executive Officer
(408) - 416-4221
Forward-Looking Statements:This news release contains certain
forward-looking statements, including management's assessment of future
plans and operations, and the timing thereof, that involve substantial
known and unknown risks and uncertainties, certain of which are beyond
the Company's control. Such risks and uncertainties include, without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other
producers, inability to retain drilling rigs and other services, delays
resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources,
the impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations
(including the adoption of new environmental laws and regulations) and
changes in how they are interpreted and enforced, increased competition,
the lack of availability of qualified personnel or management,
fluctuations in foreign exchange or interest rates, stock market
volatility and market valuations of companies with respect to announced
transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. The Company's actual results,
performance or achievements could differ materially from those expressed
in, or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do
so, what benefits, including the amount of proceeds, that the Company
will derive there from. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and other
factors that could affect the Company’s operations and financial results
are included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com).
This news release contains “forward-looking statements” within the
meaning of applicable securities laws relating to, among other things,
the Proposed Transaction. Readers are cautioned not to place undue
reliance on forward-looking statements. Actual results and developments
may differ materially from those contemplated by these statements.
Completion of the Proposed Transaction described herein is dependent on
a number of factors and is subject to a number of risks and
uncertainties, and it is not certain that the Proposed Transaction will
be completed. Factors that could cause actual results to differ
materially include, but are not limited to, changes in the Company's or
Wi2Wi’s business, general business, economic and competitive
uncertainties and delay or failure to receive board, shareholder or
regulatory approvals.
Forward-looking statements are made based on management’s beliefs,
estimates and opinions on the date the statements are made and the
Corporation undertakes no obligation to update forward-looking
statements and if these beliefs, estimates and opinions or other
circumstances should change, except as required by applicable law.All
subsequent forward-looking statements, whether written or oral,
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements.
Furthermore, the forward-looking statements contained in this news
release are made as at the date of this news release and the Company
does not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contacts:
Wi2Wi Corporation
Prakash Hariharan, 408-416-4221
Interim
Chief Executive Officer
Source: Wi2Wi Corporation
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