MISSISSAUGA, ONTARIO--(Marketwired - Aug. 14, 2014) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
DataWind Inc. ("DataWind" or the "Company") (TSX:DW), a leader in the delivery of internet access in emerging markets, today announced the financial results for Datawind UK Plc ("Datawind UK"), its predecessor and now its wholly-owned subsidiary, for the three-month period ended June, 30, 2014.
DataWind UK became a wholly-owned subsidiary of DataWind on July 8, 2014, immediately prior to the closing of the initial public offering of DataWind (the "IPO") in connection with a pre-IPO reorganization.
These financials results will be the last expressed by the Company in UK Pounds as the reported quarter ended just prior to the IPO.
- Revenue was £3.0 million for the quarter ended June 30, 2014, consistent with the previous quarter ended March 31, 2014.
- Commercial (non-government) revenue grew 36% for the quarter ended June 30, 2014 compared to the same period last year.
- Gross margin was £0.44 million for the quarter, down slightly from £0.57 million during the previous quarter ended March 31, 2014.
- Operating expenditures remained in line with expectations at £1.4 million for the quarter, compared to £1.3 million during the previous quarter ended March 31, 2014.
- DataWind UK's GAAP net loss from continuing operations for the quarter was £0.9 million, or £0.005 per share, consistent with the previous quarter ended March 31, 2014
- Announced a retail partnership with UniverCell, the largest electronics retail player in Southern India, to market the Company's UbiSlate tablets, subsequent to the end of the period.
- The Company completed its IPO subsequent to quarter end resulting in gross proceeds of CAN$30,001,000 placing the Company and its subsidiaries in a strong working capital position.
"We have been producing and selling at the limits of our working capital availability which has resulted in consistent performance for several quarters. The success of our recent IPO provides working capital to expand production and increase our deliveries," said Raja Singh Tuli, Co-Chairman of DataWind.
"Distribution channel partners and carriers continue to express interest and seek out our technology in India and other emerging markets. Our stronger balance sheet has allowed us to expand distribution beyond our initial channel of direct-to-consumer. We added our first home shopping channel earlier this year and since the IPO we added our first retail partnership. Our focus is to expand our distribution capabilities to drive market penetration," said Suneet Tuli, Chief Executive Officer of DataWind.
A copy DataWind UK Plc's financial statements are available on SEDAR at www.sedar.com.
DataWind is a leader in low-cost Internet connectivity for emerging markets. DataWind's mission is to bring the Internet, which has the ability to create tremendous social and economic benefits, to billions of unconnected people in the developing world. The Company's Internet Delivery Platform offers a low-cost Internet browsing solution by bundling an affordable tablet device with an inexpensive, pre-paid, 2G Internet service plan. DataWind is traded on the Toronto Stock Exchange (TSX:DW). For more information visit www.datawind.com.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information includes information with respect to our goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as "may," "would," "should," "could," "expect," "intend," "estimate," "anticipate," "plan," "foresee," "believe," and "continue," or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in the Company's prospectus dated June 27, 2014, which is available on the SEDAR website at www.sedar.com. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
No securities regulatory authority has either approved or disapproved the contents of this press release.