SOURCE: AmbiCom Holdings, Inc.

AmbiCom Holdings, Inc.

October 29, 2013 10:00 ET

AmbiCom Reports 120% Revenue Improvement in Fiscal 2013

Revenues Increased 120% Year Over Year to a Record $3,300,472, While Achieving Profitability on the Bottom Line With Net Income of $530,013

MILPITAS, CA--(Marketwired - Oct 29, 2013) - AmbiCom Holdings, Inc. (OTCQB: ABHI), a leading designer and developer of innovative wireless products for the medical and automotive verticals, and a distributor of innovative healthcare products that has sold more than one million devices worldwide, today announced financial results for its fiscal year ended July 31, 2013.

"AmbiCom's transition to profitability marks a key milestone for our management team and shareholders," said AmbiCom CEO John Hwang. "With triple-digit revenue growth rates and financial independence, management is focused on scaling revenues higher and unlocking long-term shareholder value by introducing new wireless products, such as the SDIO cards, and entering new retail markets, with products like the Solar Ionic Toothbrush."

Financial Highlights

  • Revenues: Total revenues increased 120%, from $1,502,676 to $3,300,472, due to increased demand for its wireless solutions, as the market transitions from traditional wired solution to wireless connectivity. Management anticipates demand to continue increasing with the introduction of its new SDIO cards and home medical devices.
  • Margins: Gross profit increased by 96%, from $896,777 to $1,753,418, due to the increase in overall revenues. While gross margins decreased from 59.7% to 53.1%, these levels will vary based on outsourcing costs, product mix, and its transition into retail. Operating expenses decreased 16% due to lower R&D, public relations, and other fees.
  • Net Income: Net income increased from a net loss of $595,700 to a net income of $530,013 due to revenue growth that outpaced growth in expenses. Management expects to remain profitable in FY2014 as it continues to cost-effectively grow the business and enhance long-term shareholder value.
  • Balance Sheet: Cash and equivalents increased 139% from $249,327 to $596,871, while current liabilities decreased 44% from $793,233 to $444,789. Current assets increased 38% from $758,751 to $1,045,712, yielding a strong current ratio. 

"Sales in the wireless medical device industry have grown at a rapid pace over the past few years as healthcare providers seek increased outpatient services and wireless technologies reduce service requirements and enhance patient quality of life," added Mr. Hwang. "We expect to see ongoing top- and bottom-line growth from this segment, driven by high-margin recurring income, while simultaneously focusing on a number of other initiatives to drive value."

About AmbiCom Holdings, Inc.

AmbiCom is headquartered in Milpitas, California, and is a leading designer and developer of wireless products focusing on Wi-Fi and Bluetooth® applications for the wireless medical, healthcare and automotive industries. AmbiCom purchases standard wireless products and designs and develops features and packaging to customize these products to its target OEM markets, including a new SDIO card to be sold to its OEM customers. AmbiCom believes there are unique opportunities as a result of the sheer size of the wireless healthcare market and the Company's innovative approach and exemplary customer services. AmbiCom also designs and develops wireless home medical devices for non-health care applications for the retail market that are expected to be introduced during the next fiscal year, including solar ionic toothbrushes that in general utilize light to activate an ionic process to remove plaque. The Company also expects to continue to expand on its non-recurring engineering projects. For more information, visit www.ambicom.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements, including but not limited to our ability to maintain our website and associated computer systems, our ability to generate sufficient market acceptance for our products and services, our ability to generate sufficient operating cash flow, and general economic conditions. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the Securities and Exchange Commission from time to time which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one of more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

 
AMBICOM HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
AS OF JULY 31,
 
           
ASSETS 2013     2012  
Current assets:              
  Cash and cash equivalents $ 596,871     $ 249,327  
  Accounts receivable, net of allowance for doubtful accounts of $26 and $509 as of July 31, 2013 and 2012, respectively   191,835       215,921  
  Inventory, net of reserve balances of $10,360 and $41,192 as of July 31, 2013 and 2012, respectively   89,732       178,104  
  Prepaid expenses and other current assets   167,274       115,399  
    Total current assets   1,045,712       758,751  
               
Property and equipment, net   15,201       20,313  
Deposit   20,695       20,695  
  Total assets $ 1,081,608     $ 799,759  
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
               
Current liabilities:              
  Accounts payable and accrued liabilities $ 39,077     $ 71,891  
  Accounts payable - other   23,733       71,339  
  Deferred revenue   381,980       595,004  
  Notes payable - current portion   -       55,000  
    Total current liabilities   444,790       793,234  
               
    Total liabilities   444,790       793,234  
               
Commitments and contingencies (Note 4)              
               
Stockholders' equity:              
  Common stock, $0.008 par value; 125,000,000 shares authorized; 10,806,520 and 9,790,760 shares issued and outstanding at July 31, 2013 and July 31, 2012, respectively   86,449       78,323  
  Preferred stock, Series A, $0.001 per share; 9,400,000 shares authorized; 7,050,000 and 7,050,000 shares issued and outstanding at July 31, 2013 and July 31, 2012, respectively   7,050       7,050  
  Preferred stock, Series B, $0.008 per share 325,000 shares authorized; 262,475 and 262,475 shares issued and outstanding at July 31, 2013 and July 31, 2012, respectively   2,100       2,100  
  Additional paid in capital   11,493,738       11,401,458  
  Accumulated deficits   (10,952,519 )     (11,482,406 )
    Total stockholders' equity   636,818       6,525  
  Total Liabilities and Stockholders' Equity $ 1,081,608     $ 799,759  
                 
                 
 
AMBICOM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JULY 31,
 
  2013   2012  
             
Sales $ 3,300,472   $ 1,502,676  
             
Cost of sales   1,547,054     605,899  
             
Gross profits   1,753,418     896,777  
             
Operating Expenses            
  Depreciation   6,187     6,400  
  Professional fees   281,377     426,844  
  Selling and general expenses   962,413     1,058,046  
  Total operating expenses   1,249,977     1,491,290  
             
Income (loss) from operations   503,441     (594,513 )
             
Other income (expense)            
  Other income and expense, net   28,167     2,695  
  Interest income (expense), net   5     (3,082 )
Net other income (expense)   28,172     (387 )
             
Total income (loss) before income taxes   531,613     (594,900 )
             
Income taxes   1,600     800  
             
Net income (loss) $ 530,013   $ (595,700 )
             
Net income (loss) per share - basic $ 0.049   $ (0.061 )
             
Net income (loss) per share - diluted $ 0.029   $ (0.035 )
             
Weighted average shares outstanding - basic   10,806,520     9,790,760  
             
Weighted average shares outstanding - diluted   18,118,995     17,103,235  
             
 
 
AMBICOM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JULY 31,
 
   
  2013     2012  
Cash flows from operating activities:              
  Net income (loss) $ 530,013     $ (595,700 )
  Net income (loss) items not affecting cash:              
    Depreciation and amortization   6,187       6,400  
    Stock-based compensation   100,280       263,531  
    Increase (Reduction) in bad debt reserve   483       (8,820 )
    Increase in reserve for inventory loss   4,409       3,378  
               
    Decrease / (Increase) in operating assets:              
      Accounts receivable   23,603       (67,248 )
      Inventory   83,963       (67,712 )
      Prepaid expense   (51,875 )     (89,336 )
               
    Increase / (Decrease) in operating liabilities:              
      Accounts payable - trade   (32,813 )     24,796  
      Accrued payable - other   (47,607 )     23,758  
      Unearned revenue   (213,024 )     582,840  
               
        Net cash provided by operating activities   403,619       75,887  
               
Cash flows from investing activities:              
  Capital expenditures   (1,075 )     (1,072 )
               
        Net cash used in investing activities   (1,075 )     (1,072 )
               
Cash flows from financing activities:              
  Payment on line of credit   -       (290,000 )
  Payments on notes payable   (55,000 )     (60,000 )
               
        Net cash used in financing activities   (55,000 )     (350,000 )
               
Net increase (decrease) in cash and cash equivalents   347,544       (275,185 )
  Cash and cash equivalents, beginning of year   249,327       524,512  
               
Cash and cash equivalents, end of year $ 596,871     $ 249,327  
               
  Supplemental information:              
    Income taxes paid $ 1,600     $ 800  
    Interest paid $ -     $ 3,082  
                   
                   

Contact Information

  • Contact

    J.J. Hwang
    AmbiCom Holdings Inc.
    (408) 321-0822 x301
    jj@ambicom.com