SARASOTA, FL, Jan. 22, 2019 (GLOBE NEWSWIRE) -- xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), whose brands are recognized as the global leaders in live video communications, today announced preliminary estimated revenue results for the fourth quarter ended December 31, 2018.
xG anticipates overall revenue for the quarter to reach approximately $10.9 million. Gross margins for the quarter are forecast to be in the historical range reported by the Company of approximately 50%, and the Company expects to end the year with approximately $2.1 million cash on hand.
“We are pleased to report these preliminary revenue results, which is in keeping with our efforts since Q2 2018,” said Roger Branton, CEO and co-founder of xG Technology. “In the second quarter of 2018, we implemented decisive measures to strengthen the financial position of the company and enable profitable and stable revenue growth. Our initial goal was cost-justifying all aspects of our business. We accomplished that goal by the end of Q3 with our announcement that we realized over $8 million in labor and non-labor annual savings. Having successfully addressed our expenses and supplier issues, we are better positioned to enable topline improvements and focus on growing the business.”
Mr. Branton continued, “As we enter 2019, our primary objective is to build on the sales momentum we attained in Q4 2018, while maintaining our focus on positive cash flow and profitability to underpin our revenue base. We look forward to sharing additional details when we announce our full results.”
xG has not finalized its financial statements for 2018. As a result, the information in this release is preliminary and based upon the information available to xG as of the date of this release. During the course of finalizing its financial results, items may be identified that would require the Company to make adjustments, which could be material, and result in changes to these preliminary results. As a result, the preliminary selected financial information above is forward-looking information and subject to risks and uncertainties, including possible adjustments to the preliminary unaudited financial information.
About xG Technology, Inc.
xG Technology’s IMT and Vislink brands are recognized as the global leaders in live video communications and are trusted suppliers to tier-1 customers in broadcast/sports/entertainment, and law enforcement/public safety/defense markets. Their products are recognized for high levels of performance, reliability, build quality, extended operating ranges and compact form factors. In the broadcast, sports and entertainment sectors, IMT and Vislink provide high-definition communication links to reliably capture, transmit and manage live event footage. In the law enforcement, public safety & defense markets, IMT and Vislink provide secure video communications and mission-critical solutions to local, national and international agencies and organizations. More information can be found at www.imt-solutions.com and www.vislink.com.
Headquartered in Sarasota, Florida, xG Technology has over 80 patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market (symbol: XGTI). More info: www.xgtechnology.com.
# # #
Note on Forward-looking Statements
This press release may contain projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements in this press release include, but are not limited to, our expectations regarding our revenue, including the impact of price protection charges, gross margin and operating expenses for the fourth quarter of 2018; our preliminary business outlook for 2019; and anticipated reductions in operating expenses for 2018 as compared to 2017. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the risk that our reduction in operating expenses may impact our ability to meet our business objectives and achieve our revenue targets and may not result in the expected improvement in our profitability, the fact that our future growth depends in part on further penetrating our addressable market and also growing internationally, and we may not be successful in doing so; our dependence on sales of certain products to generate a significant portion of our revenue; the effect of a decrease in the sales or change in sales mix of these products would harm our business; the risks that an economic downturn or economic uncertainty in our key U.S. and international markets may adversely affect demand for our products; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; and other factors detailed in the Risk Factors section of our Registration Statement on Form S-1, as amended (No. 333-225975), which is on file with the Securities and Exchange Commission. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2018. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. xG disclaims any obligation to update these forward-looking statements.
FOR MORE INFORMATION:
xG Technology:
Daniel Carpini
941-953-9035
daniel.carpini@xgtechnology.com
Investor Relations:
John Marco/CORE IR
516-222-2560
johnm@coreir.com