Wi2Wi Corporation
TSX VENTURE : YTY

Wi2Wi Corporation

November 14, 2016 08:44 ET

Wi2Wi Corporation Announces Results for the Quarter Ending September 30, 2016

TORONTO, ONTARIO--(Marketwired - Nov. 14, 2016) - Wi2Wi Corporation ("Wi2Wi" or the "Company") (TSX VENTURE:YTY) announces results for the quarter ending September 30, 2016.

Highlights

The decrease in revenues for the three month period ending September 30, 2016 as compared to the same period in 2015 was due to:

  • The Shipment of a number of 2014 back‐orders in 2015.
  • The company decided to fully exit from extremely low margin business within Frequency Control Devices.
  • Gross margin as a percentage of revenue has decreased mainly due to the decrease in the revenue from Wireless Connectivity products. A number of Connectivity products had reached end of life.
  • Delay in releasing new Wireless Connectivity products, and long design in cycle for the new products released.
Highlights
(In thousands of US
Dollars unless otherwise stated)

3 Months
Ended
September
30 2016
3 Months
Ended
September
30 2015

9 Months
Ended
September
30 2016
9 Months
Ended
September
30 2015
Revenue 2,482 3,123 7,338 11,757
Gross Profit 767 1,324 2,186 4,022
Net income (loss) from Operations 7 152 (256) 817
Net Income (loss) per share ($) ‐0‐ 0.002 ‐0.002 0.002
Total Assets 7,448 8,832 7,448 8,832
Total current liabilities 2,034 6,847 2,034 6,847
Shareholder's equity 5,414 1,985 5,414 1,985

Investment in R&D: The Company commenced a modest product development program. The current investment in R&D is anticipated to positively impact operations in late 2017. A number of potential customers are in the process of evaluating the Company's new products released in the first half of 2016. However, the Company does not recognize a design win until the customer certification process is fully complete. These products will take in excess of 18 months to yield meaningful revenue. Historically, the useful life of Connectivity products are in excess of 8 years, and in excess of 15 years for Frequency Control and Timing Devices. The Company is actively looking to raise capital to expedite new product development for both Wireless Connectivity Devices and Frequency Control Devices.

"The Company's efforts in 2016 will be focused on stabilizing the business increasing gross margins, winning back customer confidence, and promoting new products that were announced recently, in addition to developing new products specifically targeting IoT applications. We are seeing increased customer inquiries for the new products released from the IoT market. The company is actively looking to raise growth capital. " said Mr. Zachariah Mathews, President & CEO of the Company.

About IoT and M2M

Essentially, IoT and M2M describe the network of physical objects or "things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data. Driven by several factors including the growth in the availability of Broadband Internet, which reduces the cost of connecting, and the related increase in Wi‐Fi capabilities as well as sensors built into myriad technologies, this has been described as the "perfect storm" for the IoT. Almost any device with an on and off switch that can be connected to the Internet (and/or to each other) - anything from cell phones, coffee makers, washing machines, headphones, lamps, wearable devices, cars, as well as machine components in the engine of a jet airplane or the drill of an oil rig. According to analyst firm Gartner, by 2020 there will be over 26 billion connected devices. Others think this figure could be too conservative by a factor of four.

About Wi2Wi Corporation

Wi2Wi is a vertically‐integrated technology company which designs, manufactures and markets high performance, low power wireless connectivity solutions, global navigation satellite system (GNSS) modules, and frequency control devices. The Company's products and services address numerous applications in the markets of Internet of Things (IoT), Machine to Machine (M2M), Avionics, Space, and Government Sponsored Projects. The company currently has a total of 73 employees comprising 19 Engineers and 54 in Sales, Marketing, Manufacturing and Finance. Wi2Wi's products and value‐added services provide highly integrated, rugged, robust, and reliable multiprotocol wireless actuators with embedded software, along with customized timing and frequency control devices for customers, worldwide. The Company was founded in 2005 and is strategically headquartered in San Jose, California with satellite offices in Middleton, Wisconsin and Hyderabad, India. Wi2Wi's manufacturing operations, its laboratory for reliability and quality control, together with design and engineering for timing and frequency control devices are located in Middleton, WI. The branch office, located in Hyderabad, India, focuses on the development of wireless connectivity; both hardware and software. Wi2Wi's strategic objective is to service the unique needs of each customer by providing end to end wireless integration solutions and highly customizable timing and frequency control devices. Wi2Wi distinguishes itself from commodity grade products, with best in the market performance, highly reliable, low power wireless connectivity products with integrated software that supports broader temperature ranges and a longer product life cycle. Furthermore, Wi2Wi's end to end product solutions helps the customer substantially reduce their end product expense, certification cost, and overall R&D investment, in addition to substantially reducing the time to market. Wi2Wi has partnered with best in class global leaders in technology, manufacturing, and sales. The Company uses a wide network of manufacturer's representatives, worldwide, to promote its products and services, and has partnered with world class distributors for the fulfillment of orders along with direct sales.

Forward‐Looking Statements: This news release contains certain forward‐looking statements, including management's assessment of future plans and operations, and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with the ability to access sufficient capital, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, stock market volatility. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward‐looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward‐looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Forward‐looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward‐looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. All subsequent forward‐looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward‐looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Common Shares: 133,027,744

Contact Information

  • Zachariah Mathews
    President and Chief Executive Officer
    408-416-4202
    zach@wi2wi.com