Wireless Matrix Reports Third Quarter Fiscal 2007 Results
13 March 2007
Wireless Matrix Corporation (TSX: WRX) ("Wireless Matrix" or the "Corporation"), is pleased to provide the results for the third quarter ended January 31, 2007 ("Third quarter fiscal 2007"). All currency is expressed in U.S. dollars.
Wireless Matrix's customers seek vehicle centric solutions that offer efficiency advances, improved utilization, measurable productivity gains, and higher policy compliance of their field workforces. The Corporation is the only provider that offers an integrated platform of logistic tracking applications with a full complement of reliable modems that leverage 3G broadband networks, satellite and GPS technologies, providing real time access and high speed data to field workforces.
"This quarter Wireless Matrix added significant improvements to FleetOutlook, its Enterprise grade logistics application platform, in the areas of enhanced fleet logistics reporting and vehicle diagnostics through a zero footprint desktop application" said J. Richard Carlson, Wireless Matrix's Chief Executive Officer and President. "FleetOutlook, when coupled with our new broadband devices, opens up a significantly larger addressable market for Wireless Matrix."
In the last year, the Corporation has introduced cellular only modem hardware and logistic tracking applications that leverage the build out of 3G broadband wireless networks on both the CDMA and GPRS standards to appeal to a broader addressable market that values data speeds over coverage. Couple this ability with the fact that fleet deployment is growing at a rate of 20% per year, with less than 6% of the 20 million fleet vehicles being deployed today, Wireless Matrix is ideally positioned in an ever-growing market space with minimal penetration.
Highlights for the third quarter of fiscal 2007, include:
- Grew its subscriber base to over 47,500 recurring revenue subscribers.
- Generated record revenues of $7,038,000 for the quarter;
- Achieved quarter-over-quarter service revenue growth of over 24% with application revenues becoming 15% of total revenues and achieved service gross margins of over 70%.
- Generated $264 of cash from operations and obtained positive income before other charges of $335 sooner than anticipated due to integration of MobileAria being completed substantially ahead of plan.
- Began two separate joint development efforts to address vertical market needs, the first with Milsoft Utility Solutions for the utility market and the second with TouchStar for the petrochemical and field service industries.
- Launched over 15 initial clients and paid pilots for broadband wireless hardware, network communications, and/or FleetOutlook product and services.
- Renewed two energy customer contracts with a combined contract value of over $2 million for hardware and services.
Financial Highlights:
--------------------------------------------------------------------------- Three months ended, Nine months ended, January 31 January 31 --------------------------------------------------------------------------- 2007 2006 2007 2006 --------------------------------------------------------------------------- Service revenue $ 4,899,000 $ 3,947,000 $13,530,000 $11,773,000 --------------------------------------------------------------------------- Hardware revenue 2,139,000 1,964,000 5,938,000 6,991,000 --------------------------------------------------------------------------- Total revenue 7,038,000 5,911,000 19,468,000 18,764,000 --------------------------------------------------------------------------- Gross margins (1) 3,824,000 3,027,000 10,133,000 8,819,000 --------------------------------------------------------------------------- Income before other charges (1) 335,000 290,000 776,000 880,000 --------------------------------------------------------------------------- Net income (loss) ($ 354,000) $ 150,000 ($ 769,000) $ 221,000 --------------------------------------------------------------------------- Basic and diluted income (loss) per share: ($ 0.0053) $ 0.0022 ($ 0.0114) $ 0.0033 --------------------------------------------------------------------------- Cash balance $ 5,494,000 $14,814,000 $ 5,494,000 $14,814,000 --------------------------------------------------------------------------- Total subscribers 47,524 30,017 47,524 30,017 --------------------------------------------------------------------------- Average Revenue Per Unit (ARPU) (1) $ 33.63 $ 43.18 $ 34.84 $ 43.59 --------------------------------------------------------------------------- Total units shipped 1,833 1,953 4,613 4,895 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (1) This press release should be read in conjunction with the Management Discussion and Analysis included in Wireless Matrix's April 30, 2006 Annual Report and Financial Statements and Notes thereto. Non-GAAP measures presented in this press release are further discussed and defined under the heading "Supplemental Non-GAAP Measures" within Management Discussion and Analysis included in Wireless Matrix's April 30, 2006 Annual Report.
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, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. 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 Corporation 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 and Mountain View, CA. 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.
Contacts: Wireless Matrix Corporation Maria C. Izurieta Chief Financial Officer (703) 262-4020 Website: www.wrx-us.com
SOURCE: Wireless Matrix Corporation
Source: marketwire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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