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)||
|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
|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.
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.
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:
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.