Wireless Matrix Corporation

Wireless Matrix Corporation

March 13, 2008 09:00 ET

Wireless Matrix Reports Third Quarter Fiscal 2008 Results

Grows Revenues by 35%, Achieves Record Adjusted EBITDA

RESTON, VIRGINIA--(Marketwire - March 13, 2008) - Wireless Matrix Corporation (TSX:WRX), the leading provider of mobile resource management and software application solutions on a Software-as-a-Service (SaaS) basis for enterprises with service fleets is pleased to provide the results for its third quarter ended January 31, 2008.

All currency expressed in U.S. dollars ('000's).

Wireless Matrix achieved record revenues of $9,495 and record adjusted EBITDA of $766 during the third quarter. The Corporation's top line grew 35% when compared to the same period last year due to healthy subscriber additions. Wireless Matrix added 3,161 new subscribers during the third quarter to end the quarter with 62,350 subscribers, a 31% improvement over the 47,524 subscribers the Corporation recorded at the end of January 2007. These results indicate that Wireless Matrix is emerging as the dominant player in the 360 degrees Mobile Resource Management space serving enterprise fleets.

Wireless Matrix's solution suite, offered on a Software-as-a-Service (SaaS) basis, provides fleet managers the ability to increase productivity and reduce operating costs. The Corporation's fleet management application drives rapid return on investment and contributes to the client's bottom line; rendering Wireless Matrix's solutions fairly recession resistant. Clients that expanded their relationship with Wireless Matrix during this quarter include:

- A leading cable Multiple System Operator (MSO) provided a purchase order for 215 additional wireless broadband devices and related FleetOutlook and Network Services subscriptions to expand to 3,800 subscribers on the solution suite.

- CSX Corporation continued to place orders for additional multi-mode communication units as part of an $8,000 agreement for hardware and services and ended the quarter with 960 units in backlog.

- Six rural electric cooperatives activated over 400 subscribers during the fiscal year as the Corporation expanded its entrance into this growing vertical.

"We are proud of our results for the third quarter 2008," said J. Richard Carlson, Wireless Matrix's Chief Executive Officer and President, "With 62,350 subscribers, continued double-digit revenue growth, record adjusted EBITDA of $766 and positive cash flows; we are quickly becoming a leader in the rapidly growing mobile resource management space."

Wireless Matrix's expanded subscriber base has led to several significant financial accomplishments during the third quarter fiscal 2008 when compared to the third quarter fiscal 2007:

- Total revenue growth of 35% over the third quarter fiscal 2007 to $9,495.

- Achieved 31% growth in service revenues over the same period in the prior year of $6,403.

- Grew application revenue to $1,798 or 28% of total service revenue.

- Earned $766 adjusted EBITDA(1) during the third quarter fiscal 2008 compared to a loss of $63 in third quarter last year.

- Added 3,161 new subscribers during the quarter and ended the quarter with 62,350 recurring application and network services subscribers.

- Grew SaaS application subscribers to approximately 36% of total subscribers or 22,742 subscribers.

- Drove cash flow from operations of $1,637 during the third quarter 2008 compared to $470 in the prior year period as well increased the net cash position during the quarter by $492 to $12,232.

"We have improved on all our key metrics this quarter driving a clear path to profitability. Wireless Matrix is continuing to prove its ability to develop and execute on long term strategies which drive financial results and continuously improve shareholder value," stated Maria C. Izurieta, Wireless Matrix's Chief Financial Officer.

(1) Refer to Supplemental Non-GAAP Measures within this Quarterly Report for a definition of this term.

Financial Highlights:

All currency in thousands except Three months ended Nine months ended
per share and ARPU data January 31, January 31,
2008 2007 2008 2007
Service revenue $ 6,403 $ 4,899 $17,722 $13,530
Hardware revenue 3,092 2,129 8,722 5,938
Total revenue 9,495 7,038 26,444 19,468
Gross margins 5,035 3,824 13,894 10,133
Adjusted EBITDA 766 (63) 1,135 378
Net loss $ (85) $ (752) $(1,329) $(1,167)

Basic and diluted loss per share: $ (0.00) $ (0.01) ($0.02) ($0.02)

Cash balance $12,232 $ 5,494 $12,232 $ 5,494
Total subscribers 62,350 47,524 62,350 47,524
Average Revenue Per Unit (ARPU) $ 33.55 $ 33.63 $ 33.34 $ 34.84

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 Corporation (TSX:WRX) ("Wireless Matrix" or "Corporation") is a leader in mobile resource management and hosted software application solutions for enterprises with service fleets.. The Corporation delivers real-time data services across cellular, satellite and WiFi networks; hosted applications; and a variety of modems and hardware platforms that increase productivity and reduce operating expenses for enterprises with service fleet operations. Wireless Matrix is headquartered in Reston, Virginia, and has offices in Burnaby, British Columbia 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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