Wireless Matrix Corporation

Wireless Matrix Corporation

December 12, 2007 09:00 ET

Wireless Matrix Reports Second Quarter Fiscal 2008 Results

Grows Revenues by 35%

RESTON, VIRGINIA--(Marketwire - Dec. 12, 2007) - Wireless Matrix Corporation (TSX:WRX), the leading provider of wireless data solutions targeting field service organizations is pleased to provide the results for its second quarter ended October 31, 2007.

All currency expressed in U.S. dollars.

Wireless Matrix achieved record revenues of $9,099 during the second quarter and top line growth of 35%. The Company added 2,240 new subscribers during the second quarter to end the quarter with 59,574 subscribers. The subscriber growth is the product of its evolution from a communications integrator to a provider of end-to-end 360degrees MRM (mobile resource management) solutions that increase productivity and reduce operational costs for its clients.

The new solution suite comprised of fleet management applications on a Software-as-a-Service (SaaS) basis led to new clients such as Time Warner Cable and expanded relationships with long-term clients such as Railcrew Express. Noteworthy client wins during the quarter include:

- Time Warner Cable Southwest Division ordered 700 wireless broadband devices and related FleetOutlook and Network Services subscriptions.

- A leading Natural Gas Utility expanded their relationship by equipping 450 vehicles with broadband devices and the applications suite.

- CSX Corporation placed orders for an additional 100 multi-mode communication units as part of an $8,000 agreement for hardware and services as well as an additional 800 unit order subsequent to quarter end.

- Stratos, a reseller partner, ordered an additional 600 satellite units and network services to support their customer orders.

"This was a very strong quarter for Wireless Matrix. Not only did we achieve record revenues but we obtained several contracts in the cable space and now serve 3 of the top 10 firms," said J. Richard Carlson, Wireless Matrix's Chief Executive Officer and President, "We have nearly 60,000 subscribers solidifying our leadership in the rapidly growing mobile resource management space."

Wireless Matrix also had several financial accomplishments during the second quarter fiscal 2008:

- Total revenue growth of 35% over the second quarter fiscal 2007 to $9,099 and total revenue growth of 36% over the first six months of year over the same period in fiscal 2007 to $16,949.

- Achieved 25% growth in service revenues to end the quarter at $5,969 and growth of 31% for the first half of fiscal 2008 to a record of $11,319.

- Wireless Matrix added 2,240 new subscribers and ended the quarter with 59,574 recurring revenue subscribers.

- Grew hosted applications subscribers, the Corporation's fastest growing segment, to approximately 36% or 21,686 of total subscribers.

- Earned $118 during the second quarter fiscal 2008 and generated $369 for the first six months of fiscal 2008 in adjusted EBITDA.

"This quarter, we have once again proven our ability to execute on our vision, integrate acquisitions, and grow our existing client base to generate revenue growth of 35%, thus continuously improving shareholder value," stated Maria C. Izurieta, Wireless Matrix's Chief Financial Officer.

Financial Highlights:

All currency in thousands except Three months ended, Six months ended,
per share and ARPU data October 31, October 31,
2007 2006 2007 2006
Service revenue $5,969 $4,759 $11,319 $8,631
Hardware revenue 3,130 1,988 5,630 3,799
Total revenue 9,099 6,747 16,949 12,430
Gross margins 4,672 3,369 8,859 6,309
Adjusted EBITDA 118 28 369 441
Net loss ($847) ($638) ($1,244) ($415)

Basic and diluted loss per share: ($0.01) ($0.01) ($0.02) ($0.01)

Cash balance $11,740 $5,464 $11,740 $5,464
Total subscribers 59,576 46,399 59,574 46,399
Average Revenue Per Unit (ARPU) $32.79 $32.94 $33.20 $33.97

Forward Looking Statements:

General information regarding the Corporation set forth in this document, including management's assessment of the Corporation's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of estimates, effective integration of acquisitions, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources, ability to integrate and realize anticipated benefits from acquisitions, ability to resell third party network communications at favorable rates, and to effectively manage growth. The Corporation's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide what, if any benefits to the Corporation. All data presented herein should be read in conjunction with the Corporation's regulatory filings, with the appropriate Securities Commission and SEDAR. These filings, including the Corporation's Annual Information Form ("AIF"), are located at www.sedar.com.

About Wireless Matrix:

Wireless Matrix provides enterprise-class wireless data solutions for business-critical mobile and remote asset operations. The company delivers real-time data services across cellular, satellite and WiFi networks; a variety of modems and hardware platforms; and transportation applications that increase productivity and reduce operating expenses with service fleet operations. Wireless Matrix is headquartered in Reston, Virginia, and has offices in Burnaby, British Columbia Mountain View and San Francisco, California. For more information visit www.wrx-us.com.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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