TORONTO, Aug. 14, 2006 (PRIMEZONE) -- Wireless Age Communications, Inc. (OTCBB:WLSA), a leading supplier of solutions to the Canadian wireless communications industry, today reported its financial results for the second quarter, ended June 30, 2006.
Consolidated revenues for the second quarter of fiscal 2006 were an all time record as a public company at $7,765,678 up from $7,140,818 during the first quarter of fiscal 2006, and $6,365,854 in second quarter of fiscal 2005. Retail business segment revenues were $3,392,595 up from $2,740,269 in the first quarter of fiscal 2006, and up from $2,784,360 during the second quarter of fiscal 2005. Commercial business segment revenues were $4,373,083 down slightly from $4,400,550 during the previous quarter, and up 22% from the $3,581,494 posted during the second quarter of fiscal 2005. Net loss for the second quarter of fiscal 2006 was $703,086, compared to earnings of $340,977 a year ago.
Company CFO Gary Hokkanen stated, "The Company continues to work to achieve consistent top line growth in a profitable manner. We are not content with the results and we are actively working to bring up our bottom line results as we grow the business. We continue to take steps to reduce costs, eliminate unprofitable operations and source more economical growth capital. In the meantime, we have to ready the Company for significantly higher levels of operating results when the new western Canadian project starts to ramp up in the second half of this year and in to next year. The loss for the second quarter is attributable to a number of factors, including the write down of our $424,734 note receivable from Midland International Corporation, insufficient financing to meet our planned revenue levels, continued use of a high interest cost borrowing facility and certain non-recurring charges. The lack of financing impacted us in two ways; 1) the lack of working capital resulted in certain pending orders being delayed until we improved the Company's financial position subsequent to period end, and 2) the lack of long term equipment financing prevented the Company from expanding our broadband network in order to bring our networks division to break-even operations."
The company's Chairman and CEO, Brad Poulos, commented, "Despite the disappointing results in the second quarter, there were several exciting new initiatives announced including: mmwave being awarded an estimated $30 million contract by a major global telecommunications manufacturer, and the Company engaging Barron Partners LP as an investment banker to assist us with the planned growth of the Company. We reduced headcount earlier this year and will begin to see the effects later on this year, and we are continuing to address the costs of our operations with a view to achieving sustainable profitability."
Summary financial Three Months Ended Six Months Ended
information June 30, June 30,
(unaudited): 2006 2005 2006 2005
---- ---- ---- ----
Sales including
commissions and
residuals $7,765,678 $6,365,854 $14,906,498 $10,357,413
Total gross profit 2,201,617 2,217,738 4,269,063 3,694,702
Selling and admini-
strative expenses 2,614,328 1,799,237 4,607,800 3,059,656
Earnings (loss) from
operations (853,558) 353,946 (899,938) 510,384
Net income (loss) $(703,086) $340,977 $(809,924) $448,321
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Basic earnings (loss)
per share $(0.024) $0.012 $(0.028) $0.017
Diluted earnings
per share - $0.012 - $0.017
In lieu of a quarterly conference call, the company's Chairman and CEO, Brad Poulos, will be addressing the investment community on the Wireless Age IR HUB. The address will be available on Monday, August 21, 2006, at http://www.agoracom.com/ir/WirelessAge. Investors will then be asked to post their questions on the HUB and will receive answers within 24 hours.
Shareholders are urged to review the complete financial statements which are available on the website of the SEC at www.sec.gov.
For all Wireless Age investor relations needs, investors are asked to visit the Wireless Age IR Hub at http://www.agoracom.com/IR/WirelessAge where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to WLSA@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
About Wireless Age Communications Inc.
Wireless Age's operations are segregated into two distinct segments, Retail and Commercial.
Retail:
Wireless Age retail outlets sell next generation wireless products and services to business and individual end users in Saskatchewan and Manitoba.
Commercial:
Within the Commercial segment, mmwave does specialty distribution and network engineering and integration, for carriers and manufacturers of communications equipment in Canada. Wireless Source distributes prepaid phone cards, wireless accessories, land mobile radios, batteries and ancillary electronics products to dealers throughout North America. Wireless Works operates broadband public access and private networks in Southern Ontario, and develops and deploys consumer and commercial products for those networks.
The company is a recognized leader in the wireless industry in Canada and is a member of the WiMax forum, as well as a very active member of the Canadian Wireless Telecommunications Association.
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 Communications, Inc. 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 revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues 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 Communications, Inc. SEC filings. Wireless Age Communications, Inc. 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 Communications, Inc.'s SEC filings.