[March 26, 2019] |
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Edgewater Wireless Reports Third Quarter Fiscal 2019 Financial Results
Edgewater Wireless Systems Inc. (YFI:TSX.V)
(OTCQB:KPIFF),
the industry leader in innovative WiFi (News - Alert) Multi-Channel Single Radio
(MCSR™) technology for residential and commercial markets, today
announced the financial and operating results for its quarter ended
January 31, 2019.
Third Quarter Financial Highlights
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Q3 2019 revenues of $188,871, which marked a sequential
quarter-on-quarter growth of 47.7% and 802% increase over the same
quarter a year earlier:
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For the reporting period, we continued to regularly supply our
major customer and continue to ramp production capabilities;
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Revenue and backlog represent an increase in customer diversity
over the previous quarter as we deepened relationships in the
Cable Broadband Industry with repeat business received late in the
period from existing customers.
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Gross Margin of 24.7%, tracking tightly with the 25.9% and 25.5%
achieved in the past two quarters confirming our strong focus on
cost management. Upon reaching volume production, our target is to
achieve 45-50% Gross Margin.
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Order backlog of $888,480 which represented increased customer
diversity and includes orders received late in the period and in the
current period. This illustrates progress in fulfilling orders as well
as additions to our order book.
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Net loss totaled $813,100 for the quarter compared to $925,896 in the
same quarter a year earlier. Adjusting for non-cash charges which were
largely represented by compensation expense of $311,749 directly
related to our first grant of options to employees, officers and
directors since early 2017, this resulted in a cash burn rate in the
quarter of $164,450 per month on average compared to $255,870 per
month in the same quarter a year earlier.
Q3 Accomplishments
For the reporting period, we worked alongside industry giants and
disruptors, developing and implementing software applications designed
to drive adoption of our silicon solutions in the global residential and
enterprise markets.
Key highlights include:
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The resounding success of the Wireless Broadband Alliance (WBA) demonstration
featuring Edgewater Wireless technology at the WBA's Wireless Global
Congress: Edgewater Wireless was part of a WBA working group that
included Comcast (NASDAQ: CMCSA), Nokia (News - Alert) (HEL: NOKIA), Global Reach and
BSG Wireless that demonstrated a world's first of its type handoff
from a mobile network to a WiFi network seamlessly and securely
without user intervention.
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The latest enhancements to our aera™ Fluid MX controller: Deployed
at Wagener Stadium and outside the reporting period, at a major MSO,
these enhancements 1) enabe the management and control of hundreds or
thousands of MCSR™ powered access points, helping to drive adoption of
our chipsets in access points for the home and business markets; and
2) enhance our aera™ product line by delivering industry-leading
features and functionality.
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Initiated the first phase of design improvements to our silicon
solutions with a major European vendor: During the
reporting period, we completed the first phase of design improvements
geared to establishing a platform for scale and creating the
foundation for growth in the higher volume residential market.
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Increased our focus on industry and corporate communications: Strategically
positioned to capture industry momentum post-Consumer Electronics Show
(CES (News - Alert)) and pre-Mobile World Congress (MWC), we kicked off an ongoing
series of webinars and marketing activities designed to raise
our profile on the global stage. These efforts create a platform that
positions Edgewater Wireless as an industry thought leader in high
density WiFi. The first two webinars can be found here.
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Strengthening our IP portfolio: Outside the reporting period,
we were granted a patent by the United States Patent Office (USPTO)
for Automatic Gain Control (AGC) for a multi-channel /
wideband communication system. Protecting our unique approach by
building a strong family of patents is a key element of our strategy
to create a strong foundation for shareholder value.
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Selected by Global Invacom (News - Alert): Outside the reporting period,
Global Invacom, a worldwide leader in satellite broadcast solutions
equipment, contracted Edgewater to further develop of its Broadcast
WiFi (Bx-WiFi) technology. First unveiled and successfully live-tested
by the BBC and Global Invacom at the Edinburgh Fringe Festival,
Bx-WiFi, when run on Edgewater's MCSR™ technology, will provide a
powerful platform for high-quality, large-scale video streaming where
traditional, single channel WiFi struggles to perform such as in
venues or at festivals.
"This has been a pivotal quarter for our company," said Andrew Skafel,
President and CEO of Edgewater Wireless. "We not only increased revenues
and continued our growth trajectory upward, but our activities with
customers and industry partners diversified and generated repeat and
recurring orders, indicating a heightened level of operational maturity.
Our team has done a phenomenal job enhancing our technology, promoting
our thought leadership and developing our business to include moving
into the residential WiFi sector. We are all eager to keep the momentum
going."
The Financial Statements and Management Discussion & Analysis have been
posted on SEDAR.
About Edgewater Wireless
We make WiFi. Better.
Edgewater Wireless (www.edgewaterwireless.com)
is the industry leader in innovative WiFi technology for residential and
commercial markets. We deliver advanced silicon solutions designed to
meet the high-density and high quality-of-service needs of service
providers and their customers. With 24+ patents, Edgewater's
Multi-Channel, Single Radio (MCSR) technology revolutionizes WiFi with
its aera™ access point product line, delivering next-generation WiFi
today.
The best solution for High-Density WiFi networks, Edgewater provides
reference designs for easy OEM integration, enabling service providers
to plan, build and deploy reliable, high-capacity services to meet data
demand in any environment, while fewer access points means lower
deployment costs.
For more information, visit: www.edgewaterwireless.com
or www.aera.io
Forward-Looking Statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. The use of any of the words "expect," "anticipate," "continue,"
"estimate," "objective," "ongoing," "may," "will," "project," "should,"
"believe," "plans," "intends" and similar expressions are intended to
identify forward-looking information or statements. Although Edgewater
Wireless believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable,
undue reliance should not be placed on the forward looking statements
and information because Edgewater Wireless can give no assurance that
they will prove to be correct. By its nature, such forward-looking
information is subject to various risks and uncertainties, which could
cause Edgewater Wireless' actual results and experience to differ
materially from the anticipated results or expectations expressed. These
risks and uncertainties, include, but are not limited to access to
capital markets, market forces, competition from new and existing
companies and regulatory conditions. Readers are cautioned not to place
undue reliance on this forward-looking information, which is given as of
the date it is expressed in this news release or otherwise, and to not
use future-oriented information or financial outlooks for anything other
than their intended purpose. Edgewater Wireless undertakes no obligation
to update publicly or revise any forward looking information, whether as
a result of new information, future events or otherwise, except as
required by law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190326005569/en/
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