Toronto, Ontario (FSCwire) - Toronto, Ontario –Wi2Wi Corporation ("Wi2Wi" or the "Company") is pleased to announce its unaudited condensed consolidated interim financial results for the three and nine month periods ending September 30, 2014.
Statement of results | Three months to | Nine months to |
(in thousands of US dollars) | September 30 | September 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) |
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
Revenue for the quarters ended September 30, 2014 and 2013 were $2,061 and $860, respectively. Revenue increased by 139% for the quarter ended September 30, 2014, compared to 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 month ended September 30, 2014 and 2013 were $4,699 and $3,438, respectively. Revenue increased by 36% for the nine month period ended September 30, 2014, compared to the same period in 2013.
The company has 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 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 third quarter ended September 30, 2014 and 2013 were $1,063 (gross margin 51.5%) and $316 (gross margin-36.7%), respectively, an increase in gross profit of 236%. Company’s control over costs continue to improve the gross margin yield.
Gross profits for the nine month period ended September 30, 2014 and 2013 were $2,372 (gross margin 50.4%) and $1,361 (gross margin-39.6%), respectively, an increase in gross profit of 74%.
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.
| | September 30, 2014 | December 31, 2013 |
Assets | | | | | |
Current Assets | | | | |
Cash | $ | 387 | $ | 15 |
Trade accounts receivable net | | 2,284 | | 79 |
Inventories | | 808 | | 305 |
Deferred inventory costs | | 214 | | 42 |
Escrow funds receivable | | - | | 500 |
Investment in Legend Oil and Gas | | 128 | | 820 |
Funds held on sale of Legend Oil and Gas shares | | 162 | | 147 |
Prepaid expenses and other current assets | | 180 | | 197 |
Total current assets | | 4,163 | | 2,105 |
Property and Equipment, Net | | 46 | | 82 |
Total Assets | $ | 4,209 | $ | 2,187 |
Liabilities | | | | |
Current Liabilities | | | | |
Accounts payable | $ | 1,875 | $ | 937 |
Senior bridge loans | | 150 | | 150 |
Note payable | | 500 | | 500 |
Promissory notes | | 510 | | 510 |
Note payable escrow | | - | | 500 |
Payable to preferred shareholders | | 291 | | 967 |
Accounts payable to related parties | | - | | 125 |
Accrued liabilities | | 1,512 | | 1,595 |
Deferred revenue | | 389 | | 67 |
Total current liabilities | | 5,227 | | 5,351 |
| | | | | |
Total liabilities | | 5,227 | | 5,351 |
Equity (Deficit) | | | | |
Common shares – no par value | | 24,194 | | 23,711 |
Contributed surplus | | 3,431 | | 3,224 |
Accumulated deficit | | (28,643) | | (30,099) |
Total shareholders’ deficit | | (1,018) | | (3,164) |
Total Liabilities and Shareholders’ Deficit | $ | 4,209 | $ | 2,187 |
“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 and IoT markets”, stated Zachariah Mathews, Chief Executive Officer of the Company.
“The strategic decision to re-organize 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”, Dr. Hans Black, the Chairman of the Board commented.
For further information, please contact:
Zach Mathews
Chief Executive Officer
408 416 4202
zach@wi2wi.com
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 Com0pany`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.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/wi2wi11282014.pdfSource: Wi2Wi Corporation (TSX Venture:YTY) http://www.wi2wi.com/
Maximum News Dissemination by FSCwire. http://www.fscwire.com
Copyright © 2014 Filing Services Canada Inc.