Edgewater Wireless Reports First Quarter 2019 Results and Issues Update to Shareholders
OTTAWA, Ontario--(BUSINESS WIRE)--Oct 1, 2018--Edgewater Wireless Systems Inc. ( TSX.V:YFI ) ( OTCQB:KPIFF ), the developer of WiFi3™ -- multi-channel WiFi chipsets and access point products for high-density wireless networks -- today announced operating results for the quarter ended July 31, 2018.
Key Highlights for the three months ended July 31, 2018 include:Successful launch of two new products into production in Q1’19 Commenced regular production and shipment aligned to customer(s) deployment requirements Gross Margins of 25.5%, a significant increase over the quarter ended July 31, 2017 Q1 2019 revenues of $77,700 which exceeded total Fiscal Year 2018 revenues Order backlog is $1,066,341
Q1 2019 Results and Accomplishments:
Progress in the first quarter was significant with the initial production of two new radio card variants for our Fortune 50 OEM customer. We have now commenced a regular tempo of production and shipments aligned to customer(s) deployment requirements. This marks an important milestone for the Company as we continue our transition to an early-stage production company.
“With the launch of two new radio card variants into production, our team has made significant progress in executing our plan to bring our revolutionary WiFi3™ to market,” said Andrew Skafel, President and CEO of Edgewater Wireless. “We’re focused on scaling our operations to support our existing customers and creating a platform for growth moving forward.”
Gross Margins for the first quarter of 2019 were 25.5%, a significant increase over the quarter ended July 31, 2017. As production runs scale, we are seeing significant improvements in Gross Margin and target 45-50% Gross Margins at volume.
Revenues for the reporting period were $77,700 which exceeded full year fiscal 2018 revenues and reflect our intense focus on operationalizing production. Backlog and deferred revenue held constant for the reporting period as production of new radio card variants were brought on line. Over the next 3-4 quarters, we anticipate some reduction in backlog and deferred revenue as we deliver against existing orders and secure new orders.
Our continued work with CableLabs and the UpRamp accelerator program is bearing fruit as we are now engaged with 4 out of 5 of the largest Cable Operators. We expect profitable partnerships as we expand from our Enterprise WiFi (business) focus to include the larger Residential WiFi (home) market. Cableco’s biggest problem is dealing with the proliferation of WiFi devices and our multi-channel WiFi3™ is at the forefront in solving the problem.
In July 2018, we were awarded Approved Vendor Status with Mediacom, the 5th largest Cable Operator in the USA – a significant milestone not only in proving our innovative WiFi3TM technology, but also, in integrating our aera.io solutions and family of FLUID controllers with a major Service Provider’s network operation. This milestone puts us alongside an established, incumbent vendor and positions us for growth in the upcoming quarters.
Our work with Mediacom, in the Enterprise WiFi space, establishes our foothold in the $21.1B market 1 and we expect current quarter activity with our aera.io products as the Mediacom team is trained to sell WiFi3TM powered solutions.
In June 2018, we announced our latest distribution partner Sir Terry Matthews backed Wesley Clover Services Europe (WCS) for distribution of WiFi3TM powered Access Point solutions, as well as OEM and Technology Licensing partner development in Europe. WCS believes WiFi3TM is the best solution to address high-density WiFi applications. We expect WCS to help us grow customer relationships in France and other parts of Europe.
Backed by 24 patents, Edgewater’s WiFi3™ is the best solution for in high-density WiFi applications. Edgewater’s patented technology mitigates adjacent and co-channel interference to enable multiple, concurrent channels of transmit and receive from a single WiFi standards-compliant radio. Delivering the highest channel density in the industry means fewer access points to deliver the highest Quality of Service (QoS) for users. For more information on High-Density WiFi solutions and OEM packages. For more information, visit: www.edgewaterwireless.com or http://www.aera.io/
About Edgewater Wireless Systems Inc.:
Edgewater Wireless develops and commercializes leading edge technologies and intellectual property for the communications market. Edgewater Wireless delivers advanced solutions designed to meet the high-density, high quality of service (QoS) and high-reliability needs of service providers and their customers. Leveraging over twenty-four (24) patents, Edgewater’s WiFi3™ is redefining WiFi technology with its wide-band, multi-channel silicon solutions and high-capacity Access Point solutions, and delivering next generation WiFi, today.
The best solution for High-Density WiFi networks, Edgewater Wireless WiFi3™ powered access point products enable innovative service providers to plan, build and deploy reliable, high-capacity services (like VoWiFi) for high-density wireless data demand in any environment.
Do more with less! Fewer access points delivering high quality service at a lower overall deployment cost make our patented WiFi3™ technology the right choice for your next WiFi network.
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.
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CONTACT: Edgewater Wireless:
President and CEO
T: +1 613-271-3710
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: ENTERTAINMENT ELECTRONIC GAMES TECHNOLOGY CONSUMER ELECTRONICS SOFTWARE AUDIO/VIDEO TELECOMMUNICATIONS
SOURCE: Edgewater Wireless Systems Inc.
Copyright Business Wire 2018.
PUB: 10/01/2018 09:00 AM/DISC: 10/01/2018 09:01 AM