BELLEVUE, Wash., April 20, 2001 (PRIMEZONE) -- Unity Wireless Corporation (OTCBB:UTYW), a leading provider of High Power RF amplifiers to the wireless industry, today announced an increase of 357% in revenues for the year ending December 31, 2000.
John Robertson, Chief Executive Officer, reported that, "with the completion of our corporate re-structuring, we are pleased to see significant sales growth for our line of linear amplifiers which reflects only a limited time in consolidated operations. Sales of the Company's Ultratech line of High Power RF (radio frequency) amplifiers drove the majority of the increase in revenues from continuing operations for fiscal 2000 to $720,162." Following the acquisition of Ultratech Linear Solutions Inc. in November 2000, operations of both entities were successfully integrated, including all administrative, engineering and manufacturing divisions, at the Company's Burnaby, British Columbia headquarters.
The Company reported assets of $4.2 million, including over $2 million in cash and cash equivalents, with liabilities of only $1.8 million at December 31, 2000. Focusing its resources on its wireless network infrastructure technologies, the Company completed its divestiture of its Sonem signal pre-emption division and its Singapore-based Unity Wireless Integration Corporation consulting division. Reductions in overall operating expenses reflected management's goal of near-term profitability, while anticipating variable market conditions. Re-pricing of employee incentive stock options were dictated by the need to attract and retain superior personnel in the face of current realities.
Corporate restructuring contributed to a loss of $5,318,633, or 0.224 per share, including non-cash expenses from stock-based compensation of $682,201, the writing down of certain assets and investments of $581,800 and a $554,211 accrual of product warranty expenses. The complete Unity Wireless Corporation 2000 Annual Report on Form 10-KSB can be found at www.freeedgar.com indexed under the UTYW stock symbol.
John Robertson further stated that, "as Unity Wireless offers products customized to client specifications and evolving business needs, we believe we will continue to increase our market share. We saw the need to focus on our core technology to maintain our growth trend and we continue to monitor expenses as we increase our capacity to design and produce our amplifiers, while developing sub-system and component technology to service current and 3G wireless infrastructure."
According to Roland Sartorius, Chief Financial Officer, "even facing an economic slowdown, demand for wireless communications infrastructure is still growing as the quickest, most cost-effective, and most reliable method of supporting fixed and mobile communications for voice, Internet and data. Writing off of certain assets and liabilities relating to our merger and divestitures, in accordance with GAAP, will allow our future operations to reflect the true growth potential for this market."
The Company believes that global market demand for high power linear amplifiers will continue to develop, as consumers worldwide are driving the growth of both mobile and fixed networks for voice, internet and data communications. High Power RF amplifiers are the heart of these wireless networks. They allow the RF signal to be amplified and broadcast without distortion. True linear amplifiers, such as the UltraTech line that includes Unity Wireless proprietary design features, offer the most reliable electronic RF power devices and components resulting in the highest possible performance. Industry estimates are that annual market sales of High Power RF amplifiers will total $3.5 billion by the year 2003.
The Company expects the results of the restructuring and ongoing increases in revenue will be positively reflected in its first quarter 2001 results, scheduled to be released on Form 10-QSB on May 14, 2001.
About Unity Wireless Corporation www.unitywireless.com
Thousands of Unity Wireless's UltraTech family of high performance RF (radio frequency) amplifiers are utilized in current wireless network base stations supporting cost effective, reliable end-to-end voice and data communications. Current and next generation technologies are all supported, including Cellular, PCS (Personal Communications Services -- TDMA, CDMA, W-CDMA, GSM), IP Gateways, Paging, WLL (Wireless Local Loop), BWA (Broadband Wireless Access) and 3G frequencies. Designed, assembled, tuned and tested in our Burnaby, British Columbia facility, UltraTech amplifiers ensure maximum efficiency and performance.
This news release includes statements that constitute forward-looking statements, including statements about anticipated demand for the Company's products, future market share and new growth and the anticipated impact of corporate restructuring on the Company's financial results. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.