SOURCE: AmbiCom Holdings, Inc.

AmbiCom Holdings, Inc.

December 18, 2013 10:00 ET

AmbiCom Reports 5th Consecutive Quarter of Net Income

Management Notes Operational Progress Transitioning to New Product Lines

MILPITAS, CA--(Marketwired - Dec 18, 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 first quarter ended October 31, 2013.

"Our transition from legacy CompactFlash cards to new SDIO and specialty modules sets the stage for long-term growth in the wireless medical device space," said AmbiCom CEO John Hwang. "While first quarter revenues have declined slightly, customers began expressing interest in our new products that offer enhanced wireless data transfer and battery performance. We plan to focus on growing these sales in the second quarter and throughout FY 2014."

Quarterly Highlights

  • Operations: The Company began transitioning from legacy CompactFlash cards to its new SDIO and specialty modules. The new SDIO modules provide enhanced data transfer rates and improved battery efficiency which is important for mobile devices.
  • Income Statement: Total revenues decreased 6%, to $799,482, due to a large portion of products reaching the end of their lifecycle. Net income was $123,381, or $0.007 per diluted share, compared to $146,623, or $0.008 per diluted share a year ago. The Company has been profitable for the past five consecutive quarters. Management anticipates demand to pick up with the introduction of its new products.
  • Balance Sheet: Total working capital increased 17% sequentially, from $600,922 to $703,133, due to current liabilities falling at a greater pace than current assets. Cash and equivalents decreased 11% sequentially, from $596,871 to $537,205, due to lower revenues and higher SG&A spending to support growth initiatives.

"In addition to expanding sales of our new SDIO cards, we remain focused on bringing our solar ionic toothbrushes to the market and are focusing on strategic and synergistic acquisitions to expand our presence in the medical space," added Mr. Hwang. "We remain committed to building long-term shareholder value and look forward to reporting our progress over the coming quarters."

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, 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.

Contact Information

  • Contact

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