Webtech Wireless Announces Q3 2011 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/14/11 -- Webtech Wireless Inc. (TSX: WEW) ("Webtech Wireless" or the "Company"), a leading provider of vehicle fleet location-based services and telematics technology, today announced its financial results for the three and nine-month period ended September 30, 2011.
Q3 2011 Financial and Operational Highlights
"We are pleased to report our second consecutive quarter of Adjusted EBITDA, which was an improvement on Q2 2011, and a significant improvement of $0.3 million compared to Q3 2010 when we made a very lucrative but non-recurring licence sale. We remain cautiously optimistic regarding revenue for the remainder of the year particularly as we should see the addition of seasonal revenue from our InterFleet winter maintenance business in Q4 2011," said Scott Edmonds, President and Chief Executive Officer. "We continue to benefit from our focus on our highest margin verticals which produce a more attractive hardware margin as well as a two or three year subscription contract and where we have a sustainable competitive advantage thanks to our depth of offering - these being Transport and Oil and Gas for Quadrant, Winter Maintenance for InterFleet, and Predictive Arrival for Transit at NextBus. Our overriding goal continues to be matching our costs to our revenues and achieving an acceptable level of profitability, a goal to which we have made considerable progress. We believe we have the right people, products and execution strategy to achieve our objectives, and be a leading player in the strong growth of the telematics marketplace."
Financial Highlights
Revenue
The increase in revenue in the quarter over the prior year comes from a focus on higher priced, higher margin sales. Recurring revenue related to the Company's NextBus product has also had strong growth in the quarter. Year-to-date revenue declined marginally due to this shift in focus away from hardware OEM sales towards higher margin recurring revenue streams in Webtech's core market verticals and due to currency effect.
Recurring revenue as a percentage of total revenue was 50% for the quarter compared to 48% in Q3 2010 and was 53% year-to date compared to 51% in the prior year. The Company grew its subscriber base particularly in its NextBus business and in the theft-recovery vertical as a result of a large new NextBus customer and hardware sales in prior periods. The subscriptions to the Quadrant and InterFleet web portal reporting solutions also grew in all geographic segments. The shift away from hardware to a majority of subscription, software and services revenue reflects management's focus on developing the Software as a Service ("SaaS") model and is expected to continue.
Gross Margin
In the quarter, gross margins dropped due primarily to a significant enterprise licence sale with an exceptionally high margin recorded in the third quarter of 2010. In addition, the hardware sales were strong in the current quarter impacting the mix of margins produced. Margins were positively impacted by a significant drop in cost of sales resulting from the shift away from in-house manufacturing as well as other costs savings related to the restructuring program. The strength of the Canadian dollar relative to the US dollar for the majority of the quarter also had an impact, as 58% of revenue is denominated in US dollars and the majority of costs are incurred in Canadian dollars.
Operating Expenses
Operating expenses in Q3 2011, which include non-cash charges for depreciation and amortization, stock based compensation and one time expenses (as defined below), decreased by 18% over the prior period. This decrease resulted from restructuring efforts in early 2011.
Adjusted EBITDA(1)
The Adjusted EBITDA for the quarter was $0.6 million in Q3 2011 compared to Adjusted EBITDA of $0.4 million in Q3 2010.
Results on a non-GAAP EBITDA basis are determined as follows:
Non-GAAP Financial Measures
In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters. Details of such non-GAAP financial measures and how they are derived are provided in conjunction with the discussion of the financial information reported.
Cash and Working Capital
As at September 30, 2011, the Company's unrestricted cash position amounted to $5.1 million, which consisted of cash, cash equivalents and short-term investments, compared with $4.0 million at December 31, 2010.
As at September 30, 2011, the Company had net working capital of $12.0 million, compared with $11.8 million at December 31, 2010. The Company has historically invested in product and market development, and as a result had negative cash flows but has recently taken a number of steps to improve its ability to generate cash from operations and as a result, has improved its working capital position.
As at November 14, 2011 Webtech Wireless had 105,424,265 common shares outstanding.
IFRS Changes
The Company adopted International Financial Reporting Standards ("IFRS") during the first quarter of 2011, and accordingly, restated all 2010 comparables figures to conform with IFRS. A number of changes in the financial information previously reported under Canadian GAAP resulted from this process as detailed in Note 22 of the Condensed Consolidated Interim Financial Statements.
Financial Statements and Management Discussion & Analysis
The Condensed Consolidated Interim Financial Statements for the three and nine-months ended September 30, 2011 and the related Management Discussion & Analysis for the period has been filed on SEDAR at , and also on the Company's website at .
Notice of Conference Call
Webtech Wireless will hold a conference call today, November 14, 2011, at 11:00am ET hosted by Mr. Scott Edmonds, President and Chief Executive Officer and Mr. Andrew Morden, Chief Financial Officer to discuss the Company's financial results and corporate developments. To access the conference call by telephone, dial +1.416.340.8530 or +1.877.240.9772. A taped replay of the conference call will be archived on the Company's corporate website at: .
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 .
This News Release may contain forward-looking statements involving risks and uncertainties pertaining to, but not limited to, product plans, timing, content, pricing of products, market and industry expectations, the wireless communications and mobile fleet industries, and general economic and political conditions. Given the risks and uncertainties inherent in the markets and industries referred to in this News Release, Webtech Wireless cannot guarantee that any forward-looking statements will be realized. - All amounts in Canadian dollars (CAD$) unless otherwise noted. - Trademarks are the property of their owners.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Webtech Wireless Inc. - Investor Relations
Andrew Morden
Chief Financial Officer
+1 604.434.7337
Webtech Wireless Inc. - Press and Media
David Greer
Vice President Marketing
+1 604.628.5194
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Datum: 14.11.2011 - 13:59 Uhr
Sprache: Deutsch
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