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Wireless Age Releases Fiscal 2004 ResultsTORONTO --(Business Wire)-- April 1, 2005 -- Wireless Age Communications, Inc. (OTCBB:WLSA) announced today that it attained revenues of $15,209,161 consisting of $12,600,017 in product sales revenue and $2,609,134 in activation commissions and residual revenues during fiscal 2004, compared to $7,111,822 and $2,156,747, respectively, during fiscal 2003. The Company achieved a growth rate of over 77% in product sales revenue and 21% in activation commissions and residual revenues. The overall growth rate of revenues was 64% which included organic growth of the retail and wholesale/distribution segments of 12% and 23%, respectively, and 29% from acquisitions. The Company posted a loss of $2,043,372, ($0.09 per share) in fiscal 2004 compared to a loss of $137,307 ($0.01 per share) in the previous fiscal year. The 2004 loss resulting from several non-recurring costs totalling approximately $1.6 million including; a write down of goodwill and intangible assets, expensing all costs associated with the terminated proposed acquisition of Westcan/Allcan/Bluewave, investment losses, non-operating interest expense, offset by foreign exchange gains. "We've opted to take this opportunity, just prior to the mmwave acquisition, to clean up and strengthen our balance sheet to position the Company for the future." said Gary Hokkanen, Wireless Age's CFO. "Virtually all of the unusual items in our income statement are one time non-recurring items. Going forward our balance sheet is much stronger; we've got $800,000 in cash, we've swung a working capital deficit to a surplus of approximately $286,000, we've reduced debt from over $2.5 million to less than $250,000. The $288,000 in interest expense we recorded in 2004 will be reduced to less than $20,000 going forward. Although the operating income before taxes and non-recurring items was negative ($56,984) the Company has eliminated annualized salaries totalling over $400,000, along with the reduction in interest costs. In addition, the mmwave acquisition adds over $9 million in revenue with no additional corporate overheads. In short we have become more efficient." Brad Poulos, Wireless Age's President commented, "In fiscal year 2005 we will focus on operational results. We have several strong business units, each of which is profitable in their own right. I'm confident that we can grow each of these businesses to the benefit of all Wireless Age shareholders." John Simmonds, CEO of Wireless Age also stated, "We tried to do a lot of different things in 2004. Some we were successful with, some we were not. I'm particularly pleased with the results of our Western Canadian retail segment led by Allen Cowie - his leadership certainly made a valuable contribution, particularly in the latter half of the year. Going forward I feel that Brad Poulos, who has demonstrated an extremely high level of energy, will also have a significant impact as we combine the mmwave and Wireless Age businesses." About Wireless Age Communication Inc. Wireless Age Communications Inc. operates three Strategic Business Units. They consist of The Wireless Age retail outlets, which sell next generation wireless products and services, Wireless Source, a distributor of prepaid phone cards, wireless accessories, land mobile radios, batteries and ancillary products, and Wireless Works, the company's networks and engineering division. The Wireless Age retail operations are conducted through subsidiary Wireless Age Communications Ltd. Wireless Source wholesale/distribution operations are conducted through subsidiaries mmwave Technologies, Inc., Wireless Source Distribution Ltd., Marlon Distributors Ltd., and Prime Wireless Corporation. Wireless Works operates broadband public access and private networks and develops and deploys consumer and commercial products for use on those networks. These operations are conducted through agreements with Knowlton Pass Electronics Inc. and Maxtel Wireless Inc. mmwave Technologies also provides some engineering and integration services. Wireless Age has an investment in Azonic Corporation (OTCBB:AZOI - News), which plans to market low cost, wireless devices including cellular phones. One such phone is designed to be used for emergency purposes and can be added to first aid kits, emergency supply kits and car glove compartments. Another is a prepaid wireless phone designed to be used in the low cost and short-term markets. Collectively the subsidiaries of Wireless Age provide a comprehensive array of offerings to virtually every segment of the wireless industry and across the entire spectrum of the wireless business from mobile radio to microwave radio. Wireless Age is represented on the board of the Canadian Wireless Telecommunications Association and is an active member of the WiMAX forum and the Canadian Advanced Technology Alliance. For additional information about Wireless Age Communications Inc. or its subsidiaries, please visit the company's website at www.thewirelessage.com or review the company's periodic filings with the U.S. Securities & Exchange Commission at http://www.sec.gov. We have included statements that constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act and Section 27A of the Securities Act. The words "expect," "estimate," "anticipate," "predict," "believe" and similar expressions and variations thereof are intended to identify forward-looking statements. Such statements appear in a number of places in this release and include statements regarding the intent, belief or current expectations of our Company, its directors or officers with respect to, among other things (a) trends affecting the financial condition or results of operations of the Company, (b) the business and growth strategies of the Company, and (C) the status of the Company's compliance with Section 404 of the Sarbanes Oxley Act of 2002. The shareholders of the Company are cautioned not to put undue reliance on such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in this release, for the reasons, among others, discussed in the reports and other documents the Company files from time to time with the Securities and Exchange Commission, including the risk factors contained in the Section - "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Wireless Age Communications, Inc. (OTC Bulletin Board:WLSA) |
