Mr. Maxime Dumas reports
NURAN WIRELESS REPORTS SECOND QUARTER 2020 FINANCIAL RESULTS
Nuran Wireless Inc. has released its financial results for the three months ended April 30, 2020. All dollar amounts are expressed in Canadian currency.
Highlights of the Company's financial results for the six months ended April 30
, 2020 include the following:
- Revenue of $3,478,053 compared to $1,959,040 for the six months ended April 30, 2019;
- Gross profit of $1,025,383 compared to $764,652 for the six months ended April 30, 2019;
- Total expenses of $2,109,752 compared to $2,440,564 for the six months ended April 30, 2019;
- Net loss of $1,282,517 compared to $1,842,705 for the six months ended April 30, 2019;
Highlights of the Company's financial results for the three months ended April 30
, 2020 include the following:
- Revenue of $1,432,841 compared to $717,283 for the three months ended April 30, 2019;
- Gross profit of $263,805 compared to $262,705 for the three months ended April 30, 2019;
- Total expenses of $1,154,812 compared to $1,257,057 for the three months ended April 30, 2019;
- Net Loss of $1,089,155 compared to $922,158 for the three months ended April 30, 2019;
Highlights from the Quarter and Recent Highlights Include:
- On April 14, 2020, NuRAN announced it had signed a preliminary agreement with an undisclosed tier-one mobile operator for the deployment of rural sites under a network-as-a-service model, also referred to by the Company as "Mobile Network Enabler", or "MNE".
- On April 27, 2020, NuRAN announced it had signed a preliminary agreement with another undisclosed tier-one mobile operator for the deployment of rural sites under a network-as-a-service model, also referred to by NuRAN as "Mobile Network Enabler", or "MNE" model. This second agreement is with a different entity in a different, though nearby geographical area.
- NuRAN expects to have definitive agreements for both of the recently announced deployment projects under network-as-a-service model signed shortly and will make corresponding announcements in due time.
"While the pipeline of opportunities related to the sale of wireless infrastructure solutions continues to progress and is expected to yield to further contract announcements, NuRAN's sustained efforts towards securing long-term, recurring as-a-service revenues through its MNE model is starting to bear its fruits. Management expects more of these types of projects to materialize in the future, and become the predominant business model through which the Company will scale", states Maxime Dumas, President & CEO of NuRAN Wireless.
Assessment of COVID-19 Impact on Business:
In March 2020 the World Health Organization declared COVID-19 a global pandemic. To this date, the contagious disease outbreak has spread to every part of the world, has forced the authorities of virtually every country to impose severe containment measure effectively creating a widespread shutdown, and adversely affected the global economy.
On April 7, 2020, NuRAN announced that, as a provider of telecommunications infrastructure, the Company operates commercial activities considered essential to the population and the economy, and therefore has been able to maintain most of its operations throughout the period. In order to protect its employees from the risk of being exposed to the virus and to slow its propagation, following the guidelines of public health, all except a few
employees have been working from home since March 16, and will continue to do so for as long as social distancing measures imposed by the government remain in place. During this time, the Company continues to support the operation of mobile operators and to develop its set of infrastructure solutions. Since a large portion of the development is based on software, no major disruption has occurred. NuRAN has experienced supply chain challenges due to exceptional merchandise import and export measures taken by governments in reaction to the pandemic. Those measures have since been lifted or relaxed, allowing the Company to resume business which had been temporarily hindered. This situation has affected the delivery of certain milestones associated to the Marshall Islands contract, which created execution delays of approximately three months. The global situation may cause other disruptions which could affect the Company's ability to deliver its backlog. NuRAN has taken measures to mitigate the risk of such occurrences and minimize the impacts.
While it is impossible at this stage to accurately predict all impact that COVID-19 may have on NuRAN's business in the future, based on its own assessment and its customers assessments, none of the expected business and plans which are material to the Company are currently foreseen to be adversely affected.
The pandemic and its consequential shutdown have highlighted the importance of connectivity throughout the entire society, but especially for the underserved. The risen awareness may play favorably for the Company given it may stimulate connectivity projects through government actions as an example.
About NuRAN Wireless
NuRAN Wireless is a leading supplier of mobile and broadband wireless infrastructure solutions. Its innovative radio access network (RAN), core network, and backhaul products dramatically drop the total cost of ownership, thereby creating new opportunities for established, as well as emerging mobile network operators. Indoor coverage, isolated rural communities, offshore platforms and ships, NuRAN Wireless helps its customers reach everyone, everywhere.
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