Wi2Wi Corporation ("Wi2Wi" or the "Company") (TSX-V: YTY) (Common Shares: 81,804,306) is pleased to announce its unaudited consolidated interim financial results for the three months and nine months ended September 30, 2013
Three Months to
Three Months to
Nine Months to
Nine Months to
|(in thousands of US dollars)|
|Statement of results|
|Research and Development||225||286||740||856|
|Selling, general and administrative||713||951||3,208||3,106|
|Share Listing expenses and interest paid||29||42||3,073||77|
|Net Loss and Total Comprehensive Loss||$(651)||$(998)||$(5,660)||$(3,176)|
|Net loss per share, basic and diluted||$(0.01)||$(0.02)||$(0.07)||$(0.05)|
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.
The results of the quarter follow the completion of the amalgamation of Wi2Wi Corporation and International Sovereign Energy Corp. The additional capital introduced, following the completion of the RTO transaction, was utilized to discharge certain liabilities and other obligations, as well as to generate working capital to allow the Company to satisfy the backlog demand from customers that had accumulated.
The growth in revenue in the third quarter of 2013 has slowed somewhat due to the reduced ability of the Company to source components and to ship to its customers. The Company had additional shippable backlog of approximately $1.4 million for the third quarter of 2013, which would have been shipped under different circumstances. In addition, logistics delays affected total revenue billings for the quarter.
The Company is experiencing strong demand for its products across multiple business segments and as of the date of this release has record backlogs.
Gross margin also declined slightly in the current quarter due to some product revaluation and revenue mix.
Subsequent to the end of the quarter, the Company announced a private placement, which is expected to significantly address the working capital and growth capital needs of the Company and its large number of design win’s that are expected to go into production in 2014. This private placement is spearheaded by Paradigm Capital as lead agent, with Byron Capital and M-Partners as part of the syndicate to raise $4 million with an anticipated close of early December 2013.
Dr. Hans Black, Chairman of Wi2Wi, stated, “We are extremely pleased that our fund raising efforts have resulted in support from the investment community, resulting in the recently announced private placement to raise substantial new equity. The flow of new funds will allow us to build on the solid base we have established in 2013 to date. We have set a strategic direction for Wi2Wi building on our well received product range, supported by a highly qualified engineering group, a strong operational structure and supported by dedicated sales and administrative staff.”
Dr. Reza Ahy, Chief Executive Officer, stated, “We have been systematically building up a pipeline of quality customers and industry leaders. Wi2Wi currently has 55 design win’s or design in's for its third generation WiFi and WiFi Bluetooth and GPS products. The increase in demand for our third generation GPS and Wi-Fi Bluetooth products is exceedingly strong, and the large number of customers that have advanced to the design wins and design in's bodes well for Wi2Wi’s future. This gives a clear indication of the high acceptance levels we have been able to achieve through our high quality products, allowing customers faster time to market with feature rich software functionalities."
For further information, please contact:
John Lokker, CPA, CFE
Chief Financial 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.
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