WebTech Wireless Inc.
TSX : WEW

WebTech Wireless Inc.

February 04, 2011 04:00 ET

WebTech Wireless Provides Further Information Regarding InterFleet Operations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 4, 2011) - WebTech Wireless Inc. (TSX:WEW) ("WebTech Wireless" or the "Company"), a leading provider of vehicle fleet location-based services (LBS) and telematics technology, announces that it is continuing its review of operations at its InterFleet® subsidiary. While the review has only recently begun, it is expected to result in both cash and non-cash charges related to the carrying value of assets, collectability of certain accounts, changes in operations, accruals to complete certain professional service engagements, RMA work and other remediation projects. Some of these charges may affect 2010 results.

Scott Edmonds, President and CEO of the Company stated, "It is too early to report on the expected total amount of these charges, although based on available information, the total is anticipated to be between $500,000 and $1 million combined non-cash and cash charges. Any charges determined necessary will be in addition to severance charges stemming from management changes announced yesterday, and the non-cash inventory charge announced earlier this week, which total approximately $600,000 and $500,000 respectively."

Mr. Edmonds further commented, "This review and any related charges should be sufficient to allow us to resolve all historical issues at our operations. At the same time, we can report that at the end of December our cash on hand was $4.0 million and we received $1.2 million from a major customer early in the New Year. In addition, during the fourth quarter of 2010, we fulfilled a number of large sales, which we expect will convert to cash in the first quarter of 2011, and we enter 2011 with a strong order book and contract backlog on top of our recurring revenue, which was operating at a run-rate of more than $20 million per year at our last report. Finally, I believe that the above noted review will allow us to better manage our business going forward, to improve our margins and operating results, and to decrease cash invested in inventory and capital assets, while improving our product and customer satisfaction."

About WebTech Wireless®

WebTech Wireless Inc. (TSX:WEW) is a provider of vehicle fleet location-based services (LBS) and telematics technology. It develops, manufactures and supports end-to-end wireless solutions that improve the productivity, profitability, environmental compliance and safety of vehicle fleets. Its comprehensive suite of products and services include: automatic vehicle location (AVL), mapping, vehicle diagnostics, CO2 reporting, navigation, messaging, and mobile resource management. The Company serves customers of all sizes in the transport, government, service, insurance and OEM markets in over forty-one countries, including Fortune 500 companies. Specialized products include: Quadrant® commercial fleet solutions, InterFleet® solutions for government, and NextBus® real-time passenger information services for transit fleets. For more information, please visit www.webtechwireless.com.

Trademarks are the property of their owners.

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

Contact Information