Wireless Matrix Corporation

Wireless Matrix Corporation

September 13, 2007 08:01 ET

Wireless Matrix Reports First Quarter Fiscal 2008 Results

Total Revenues Grow By 38%

RESTON, VIRGINIA--(Marketwire - Sept. 13, 2007) - Wireless Matrix Corporation (TSX:WRX), the leading provider of wireless data solutions targeting field service organizations is pleased to provide the results for its first quarter ended July 31, 2007.

All currency expressed in U.S. dollars.

Wireless Matrix is benefiting from increased adoption rates of fleet management solutions as the mobile resource management industry space enters its high growth phase. The Corporation added 7,285 new subscribers during the first quarter to end the quarter with 53,830 subscribers. Hosted applications subscribers are now over 39% of total subscribers and represent the Company's fastest growing segment. Wireless Matrix announced during the first quarter 2008 a series of customer contracts and a strategic acquisition that, when combined with last year's acquisition of MobileAria, helped drive a 67% increase in its subscriber base over the previous year's quarter.

- Completed an acquisition of substantially all the assets of Sapias, Inc. on July 6, 2007, significantly expanding the Company's application portfolio and penetration of the cable vertical.

- Finished an initial deployment of the FleetOutlook solution across more than 80 vehicles in a service fleet of more than 5,000 trucks for a leading cable services firm.

- CSX Corporation placed an order for an additional 526 Mobile Base Station 2 Low Profile Rail communication units as part of an $8,000,000 agreement for hardware and services.

- Cable One, Inc. signed a contract to outfit 650 vehicles with Wireless Matrix Vehicle Telematics Communication Unit (VTCU) and Terrestrial Mobile Base Station (TMBS) broadband data units.

- The Company's largest FleetOutlook client placed additional orders for 2,250 VTCU and FleetOutlook Application Service subscriptions as part of 20,000 unit deployment.

- RailCrewXpress deployed the FleetOutlook solution in 550 fleet vehicles already outfitted with Wireless Matrix's Mobile Base Station II and related network communications in the Company's largest application "crossover" sale to date.

- A leading mid-Atlantic utility customer is adding the FleetOutlook solution onto their existing network services for their gas service fleet of 400 vehicles.

"Wireless Matrix rolled-out our 360 degrees Mobile Resource Management Solution Suite during the first quarter and customers are responding quite positively," said J. Richard Carlson, Wireless Matrix's Chief Executive Officer and President. "Our application solution suite comprised of location, planning and dispatch functionality helps enterprise customers drive measurable efficiencies gains from their mobile work forces and assets by providing decision makers total visibility into their fleet operations. The launch of new capabilities further demonstrates Wireless Matrix's ability to execute on our vision of becoming a full solutions provider offering hosted applications, broadband devices, and a full menu of high speed wireless networks."

Wireless Matrix had several additional noteworthy financial accomplishments during the first quarter fiscal 2008 when compared to the first quarter 2007:

- Total revenue growth of 38% over the first quarter fiscal 2007 to a record $7,850.

- Achieved 38% growth in service revenues to end the quarter at $5,350.

- Wireless Matrix added 4,790 net subscribers, of which 3,500 were acquired from Sapias during the first quarter 2008.

- Ended the first quarter 2008 with 53,830 total subscribers.

- Grew hosted applications subscribers base to over 39% or 20,884 of total subscribers, the Corporation's fastest growing segment.

- Earned $251 in adjusted EBITDA.

Financial Highlights:

All currency in thousands except per
share and ARPU data Three months ended,
July 31,
2007 2006
Service revenue $ 5,350 $ 3,872
Hardware revenue 2,500 1,811
Total revenue 7,850 5,683
Gross margins 4,187 2,940
Adjusted EBITDA 251 413
Net (loss) income (397) 223

Basic and diluted (loss) income per share:
Net (loss) income $ (.005) $ .003

Cash balance $ 12,727 $ 13,596
Total subscribers 53,830 32,328
Average Revenue Per Unit (ARPU) $ 34.42 $ 39.52

Forward Looking Statements:

General information regarding the Corporation set forth in this document, including management's assessment of the Corporation's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of estimates, effective integration of acquisitions, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources, ability to integrate and realize anticipated benefits from acquisitions, ability to resell third party network communications at favorable rates, and to effectively manage growth. The Corporation's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide what, if any benefits to the Corporation. All data presented herein should be read in conjunction with the Corporation's regulatory filings, with the appropriate Securities Commission and SEDAR. These filings, including the Corporation's Annual Information Form ("AIF''), are located at www.sedar.com.

About Wireless Matrix:

Wireless Matrix provides enterprise-class wireless data solutions for business-critical mobile and remote asset operations. The company delivers real-time data services across cellular, satellite and WiFi networks; a variety of modems and hardware platforms; and transportation applications that increase productivity and reduce operating expenses with service fleet operations. Wireless Matrix is headquartered in Reston, Virginia, and has offices in Burnaby, British Columbia, Mountain View and San Francisco, California. For more information visit www.wrx-us.com.

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

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