DataWind Inc.
TSX : DW

DataWind Inc.

August 14, 2017 16:40 ET

DataWind Reports Fiscal 2018 Year Q1 Results

MISSISSAUGA, ONTARIO--(Marketwired - Aug. 14, 2017) - DataWind Inc. (TSX:DW), a leader in the delivery of internet access in emerging markets, reported financial results for its fiscal 2018 Q1results ending June 30, 2017. All amounts are in Canadian dollars.

Financial and Operational Highlights

  • Revenues of $8.1 million during the three months ending June 30, 2017 representing a slight decrease of 2.0% over the three months ending March 31, 2017; but a more substantial decrease of 61.4% over the three months ending June 30, 2016, due to the impact of demonetization in India.

  • 126,439 units sold in Q1 2018 compared to 97,096 units sold in Q4 2017.

  • Quarterly gross margin in Q1 2018 is 25.2% compared to 19.6% in Q4 2017 and 33.4% in Q1 2017.

  • Adjusted EBITDA for the quarter ended June 30, 2017 is ($4.2 million) compared to EBITDA of $(12.9 million) for the quarter ended March 31, 2017 representing an improvement of $8.7 million.

Management Commentary

The Company continues to recover from the impact of November 2016's demonetization by the Indian government. The resulting shift to a TV infomercial based business model has allowed the Company better control on its cash flow and payment collections, as it strives to reach breakeven. As a result of this shift, receivable collection has improved to 29 days at June 30, 2017 compared to 137 days at June 30, 2016.

"We see significant opportunity for growth by using direct TV infomercials to sell our products in India. This essentially eliminates credit risk and removes any middle-man between us and our customer. As we continue to tweak complex variables associated with selling via infomercials, we are aggressively working towards breakeven." said Suneet Singh Tuli, president and CEO of DataWind.

"While we await government approval of our Virtual Network Operator license, we have developed an alternate go-to-market strategy with our telecom partners in India and hope to launch our device-independent data plans within the next two quarters." said Suneet Singh Tuli.

For more information, please refer to the company's MD&A and full financial statements that have been filed with SEDAR.

About DataWind

DataWind, Inc. is a leader in providing affordable mobile Internet connectivity in emerging markets. The company's patented, cloud-based technology reduces up to 97% the amount of data needed for web browsing, providing a broadband experience on any network -- even on legacy 2G networks that are still prevalent in developing countries. DataWind also provides economical smartphones and tablets that come bundled with one year of unlimited Internet access, making it the largest tablet provider in India. DataWind's unique solution offers broad social and economic benefits for the billions of people around the world for whom an Internet connection was previously out of reach. DataWind is traded on the Toronto Stock Exchange (TSX:DW). For more information, visit www.datawind.com.

Adjusted EBITDA

Adjusted net loss before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-IFRS measure and excludes finance costs, interest income, income tax expense or recovery, depreciation and amortization and income and expenses of a non-recurring, unusual or one-time nature. Adjusted EBITDA is a measure used by management, the retail industry and investors as an indicator of the Company's operating performance, ability to incur and service debt, and as a valuation metric. While Adjusted EBITDA is a non-IFRS measure, management believes that it is an important indicator of operating performance because it excludes the effect of financing and investing activities by eliminating the effects of interest and depreciation and removes the impact of certain non-recurring items that are not indicative of our ongoing operating performance. Therefore, management believes Adjusted EBITDA gives investors greater transparency in assessing the Company's result of operations. These measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. Adjusted EBITDA should not be considered in isolation or as an alternative to measures prepared in accordance with IFRS.

Forward-Looking Information

This press release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward- looking statements are not historical facts, but reflect management's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company's expectations, except as prescribed by applicable securities laws.

Key assumptions made in preparing the forward-looking statements contained in this Press Release include, but are not limited to, the following: The Company will continue to successfully increase its sales volumes, the Company will be able to maintain its gross margin, and the Company will continue to effectively manage the transition from private to public entity by hiring key senior and middle management and effectively rolling out and adopting appropriate policy changes.

No securities regulatory authority has either approved or disapproved the contents of this press release/media advisory.

Contact Information

  • DataWind Inc.
    Suneet S. Tuli
    Chief Executive Officer
    1 (905) 671-0202