Wireless Age Communications, Inc.
OTC Bulletin Board : WLSA

Wireless Age Communications, Inc.

November 14, 2008 15:50 ET

Wireless Age Announces Results for the Third Quarter 2008

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2008) - Wireless Age Communications, Inc. (OTCBB:WLSA)("Wireless Age" or the "Company") is pleased to announce earnings of $254,255 for the quarter ended September 30, 2008.

Earnings from continuing and discontinued operations during the three month period ended September 30, 2008 were $220,506 and $33,749, respectively. Earnings from continuing operations during the quarter ended September 30, 2007 were $550,627. The Company posted a loss from discontinued operations of $54,204 during the same period.

Year to date 2008 earnings from continuing operations are $1,368,677 compared to $731,658 in 2007. Year to date earnings per share from continuing operations were $0.023 compared to $0.017 during the comparative period in 2007.

Consolidated sales for the third quarter of fiscal 2008 from continuing operations were $6,179,727 up 23% from $5,037,526 in the third quarter of fiscal 2007. Retail business segment sales were $5,496,446 up from $4,349,085 for the third quarter of fiscal 2007, representing an increase of 26%. Commercial business segment sales were relatively flat at $683,281 in the third quarter of fiscal 2008 and $688,441 in 2007.

Year to date consolidated sales from continuing operations were $18,064,733 up from $13,442,987 in 2007. Retail business segment sales were $15,963,268 up from $11,522,794 during the nine month period ended September 30, 2007, representing an increase of 39%. Commercial business segment sales were $2,101,465 up from $1,920,193 during 2007.

The results of continuing operations are summarized as follows:



Three Months Nine Months
----------------------- -----------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Total sales $ 6,179,727 $ 5,037,526 $18,064,733 $13,442,987
Gross margin 2,307,559 2,143,761 6,953,873 5,545,317

Earnings from operations 370,031 611,983 1,444,326 1,244,557

Other (income) expenses 53,728 61,356 (210,061) 512,899
----------- ----------- ----------- -----------

Income before tax 316,303 550,627 1,654,387 731,658
Income tax expense 95,797 - 285,710 -
----------- ----------- ----------- -----------
Net income from continuing
operations 220,506 550,627 1,368,677 731,658
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------


Gary N. Hokkanen, Wireless Age CFO stated, "The prepaid card distribution contract was terminated effective September 30, 2008. Therefore we've reclassified the operating results of that business unit as discontinued operations. The effect is significant at the revenue line but negligible at the bottom line. The Company will now report year to date revenues of $18,064,733 rather than $30,843,711 and income of $1,368,677 rather than $1,448,248."

Company CEO, John Simmonds commented, "Although our retail segment margins are coming under pressure from forces largely beyond our control, I'm satisfied with the operating results for the third quarter. We believe we can mitigate the harm by focusing on reducing costs through normal ongoing pruning of the continuing operations. I encourage our shareholders to participate in our conference call this afternoon."

Conference call is scheduled for Friday November 14, 2008 at 4:15 p.m. EST.



Conference Call Access:

Local participant: (416) 644-3425
Toll free participant: (800) 733-7571
Replay Access (November 14 - 21): (877) 289-8525
Pass Code: 21289129#


Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age cannot provide assurances that the matters described in this press release will be successfully completed or that the Company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast sales and control expenses, especially on a quarterly basis; unexpected decline in sales without a corresponding and timely slowdown in expense growth; the Company's ability to retain key management and employees; intense competition and the Company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age SEC filings. Wireless Age undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age's SEC filings.

Contact Information

  • Wireless Age Communications, Inc.
    John G. Simmonds
    Chairman & CEO
    (905) 833-2753 ext. 223
    or
    Wireless Age Communications, Inc.
    Andrew Barwicki
    Investor Relations
    (516) 662-9461