Edgewater Wireless Reports Fiscal Year 2018 Financial Results and Issues Letter to Shareholders
OTTAWA, Ontario--(BUSINESS WIRE)--Aug 29, 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 is pleased to announced today that it has released its Fiscal Year 2018 financial results. These results are for the period ended April 30, 2018 and have been filed with the Canadian Securities Administrators and are now available on SEDAR.
In conjunction with this filing, the Company has issued the following letter to shareholders:
Dear fellow shareholders,
A little over 2.5 years ago, we pivoted the company to focus on high-density WiFi applications based on the competitive advantages of our WiFi3™ silicon solutions. Over the short period, we continue to build and solidify our position as an industry innovator and leader through our work with CableLabs / UpRamp, the Wireless Broadband Alliance and innovative companies like Kroger Corporation and most recently Mediacom.
Engagements with large customers will drive the maximum scale for our WiFi3™ silicon solutions and put us on the path to cash flow. It has been an exciting year and year ended April 30, 2018 highlights are as follows:
2018 Milestones:Kroger Co. (NYSE: KR): Entering the last quarter of Fiscal Year 2018, focused efforts to secure our first major WiFi3™ silicon solutions customer (OEM) were rewarded with $1.1M in purchase orders from Kroger Co. (NYSE: KR), the largest operator of supermarkets in the USA. Over the next 6-12 months we will continue to fulfill the Kroger and this represents a design win in a potential three year, $25M opportunity. Our WiFi3™ powered radio card modules help Kroger deliver the high-density WiFi required to support multiple revenue generating services today and in the future. Mediacom Communications ( https://mediacomcable.com ): Outside the reporting period, following a successful 12-month Proof of Concept, we hit another major milestone when we were awarded Approved Wireless Vendor status with the 5 th largest cable operator in the USA, Mediacom Communications. The successful Mediacom engagement has opened up the largest market opportunity for our company yet. Working in close collaboration with Mediacom, we’ve refined product features to match requirements for large operators and are working to open up new opportunities across the Mediacom footprint. WCS Europe ( http://wcs-europe.com ): After the year end, we announced our latest distribution partner WCS Europe (“WCS”), a Wesley Clover Affiliate, for distribution of high-density WiFi access points in Europe. WCS believes WiFi3™ is the best solution to address high-density WiFi applications. Since 1972, Sir Terry Matthews has created or funded more than 100 companies, including Mitel and Newbridge Networks. WCS Europe, a Wesley Clover affiliate, focuses on the latest generations of cloud and SaaS applications, including business processes management, customer relationship and engagement solutions, data management and analytics applications, as well as fixed and wireless communications services and equipment. WCS Europe’s team has extensive experience in the telecommunications, convergence, customer relationship, mobile applications and various industries and we expect WCS to help us grow customer relationships in France and other parts of Europe.
In the year, not only did we secure our largest customers to date, but we also continued our focus on the Cable Industry. We are now working with four out of the top five largest cable operators — at stages ranging from commercial discussions to pilots and WiFi3™ innovation projects. We are driving toward profitable partnerships and moving 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 – they are everywhere and it’s not changing – our WiFi3™ is at the forefront in solving the problem for the Cablecos.
We have strengthened our team with the addition of two new Board of Directors members. Steve Andrews, a 30-year global telecom exec who was instrumental in founding the Wireless Broadband Alliance whose members include BT, Verizon, Intel, and many others. And Chris McGillivray, a finance professional beefing up our shareholder communications efforts.
Corresponding with our commercial successes, we’ve started to raise our profile in the USA with investors and potential strategic partners. With the endorsement of industry experts, like Cablelabs / UpRamp, and the commercial validation of major players, like Kroger and Mediacom, the introduction has been positive and the next 6-12 months will see our continued focus on building relationships instrumental in our long-term success.
Financial results for the year reflect our intense focus on closing major customers, like Kroger — customer engagements which will bring scale to our silicon solutions (and maximize returns to us, the shareholders). Exiting 2018, our backlog was $1,162,653 compared to $100,000 in 2017 — a 10X increase and a sign we’re actually on to something. Fiscal year revenue declined to $72,600 largely attributed to global supply shortages of key third party components. We faced increased production lead times from critical suppliers of key components from a historical 4-8 weeks to 12-18 weeks. Since the end of Fiscal Year on April 30 th, shipments are beginning to achieve volume and we are providing a stream of product to our customers. We are working closely with our contract manufacturer and supply chain to address the challenges.
The team’s excitement is palpable as we’re watching shipments go out the door (from our contract manufacturer). It’s an incredible time for all of us as we are making the leap from being a small team with an innovative idea to being an early stage Production Company – we’re committed to executing on our plan to bring WiFi3™ to the world.
Our recently closed financing will help strengthen our team — yes, we are growing — and strengthen supply lines. The funds will be used to execute on our plan focusing on fulfilling customer engagements like Kroger and Mediacom, increase communications and building long-term relationships with key customers and strategic partners.
Thanks to all those who, in the depths of summer, participated in the round! Our latest round included a mix of existing supporters and new ones. New supporters included five high net worth / tech focused institutions — new supporters who see what we’ve all built and the massive opportunity ahead.
We’re revolutionizing WiFi and we’re at the forefront in the transition from single lane, gravel roads to multi-lane superhighways.
Thank you for your continued support.
Andrew Skafel, President and Chief Executive Officer Edgewater Wireless Systems Inc.
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.
About Edgewater Wireless Systems Inc.:
Edgewater Wireless develops and commercializes leading edge technologies and intellectual property for the communications market. Edgewater Wireless delivers advanced product 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 radio 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. Explore the evolution of Wi-Fi at www.EdgewaterWireless.com and www.aera.io.
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/20180829005357/en/
CONTACT: For further information:
Edgewater Wireless Systems Inc.
Andrew Skafel, +1-613-271-3710
President and Chief Executive Officer
Matt Massey, +1-613-797-9628
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: TECHNOLOGY INTERNET NETWORKS TELECOMMUNICATIONS MOBILE/WIRELESS
SOURCE: Edgewater Wireless Systems Inc.
Copyright Business Wire 2018.
PUB: 08/29/2018 07:55 AM/DISC: 08/29/2018 07:55 AM