News: Earnings
WaveRider Achieves New Revenue And Product Milestones
CCN Disclosure - Monday, April 30, 2001
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TORONTO, ONTARIO--
-- Company reports 30 percent revenue growth over Q4 2000 and introduces new Last Mile Solution( products in Q1 2001--
WaveRider Communications Inc. (NASDAQ: WAVC), a leading global provider of fixed wireless Internet access products, today reported revenues of $1.83 million for the first quarter of 2001, an increase of 30% over the previous quarter revenue of $1.4 million and 127% over Q1 2000 revenues.
The increase in revenue can be attributed mainly to the success ofthe LMS2000 and NCL1155 products as well as the introduction of the LMS3000 product series. In addition, gross margins for Q1 improved to 24%. Net loss for the quarter amounted to $7.9 million($0.14 per share) compared to $8.1 million ($0.15 per share) for Q4 2000, and $2.5 million ($0.05 per share) in first quarter of last year. The loss for Q1 2001 included non-cash financial expenses in the amount of $3.45 million.
In addition to record revenue, WaveRider achieved several significant milestones in Q1. After three years of development WaveRider celebrated the commercial launch of its LMS3000 non-line-of-sight wireless network at the IWCE trade show in Las Vegas in March. The LMS3000 features a wireless modem that can beinstalled by the end user and delivers data transfer speeds up to 1 Mbps.
Also in Q1, WaveRider announced new additions to its Last Mile Solution (LMS) product family. The LMS2100 and the LMS3100 enable an ISP to start with an entry-level, low cost solution to wirelessInternet access that can be easily and cost-effectively upgraded to the fully network-managed LMS network solutions over time. To date, WaveRider has shipped and successfully deployed LMS3100 systems in several cities throughout the United States, the Caribbean and Canada.
"With the commercial launch of the LMS3000 now complete, as well as the introduction of two additional Last Mile Solution( productsduring the first quarter of this year, we are already seeing a dramatic increase in the number of organizations evaluating our products," said Sinclair. "We are also seeing new vertical marketsand new applications developing for our non-line-of-sight technologies that extend the product beyond basic Internet access services."
"Based on Q1 revenue growth of 30% over the previous quarter as well as increased sales activity for our NCL and LMS product families, we continue to anticipate accelerating revenue growth ofover 50% for Q2 and continued improvement in our gross margins with a target of 35% by year-end."
"Our revenue growth was achieved while focusing on stringent cost controls which resulted in the small increase Research and Development expenses being more than offset by a decline in Selling, General and Administration expenses. We expect to limit expense growth to 5% per quarter throughout 2001, to break even for the month of December and to be profitable in 2002," said Sinclair.
WaveRider's conference call is scheduled for 4:30 p.m. EST, April 30, 2001 and will be webcast live over the Internet. The webcast can be accessed at www.waverider.com and at www.e-newsservices.com. The telephone number for the call is 416-695-5806. The replay number for the call is 416-695-5800, withpass code #753325.
About WaveRider Communications Inc.
WaveRider Communications, Inc. (www.waverider.com) is a leading wireless information technology company that develops, manufactures and markets products for data communications and Wireless Internet Networking (WIN). WaveRider's high performance products use frequency hopping and direct sequence spread spectrumtechnology coupled with time division duplexing techniques and operate in the license-free 900 MHz and 2.4 GHz ISM frequency bands. NCL Series Wireless Bridges and Routers provide the wireless connection between single or multiple computer networks. Integrated network management features ensure data is quickly forwarded to its intended destination based on network conditions.WaveRider's LMS (Last Mile Solution(R)) Product Family connects wireless modems that offer high-speed connections to the Internet for business and residential customers. WaveRider is traded on theNASDAQ National Market, under the symbol WAVC.
This release contains forward-looking statements that involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the development of the Internet as a commercial medium, market acceptance risks, technological development risks, seasonality and other risk factors detailed in the Company's filings with the Securities and Exchange Commission. Due to these factors, actual results could differ materially from those expressed in forward looking statements by the company.
WaveRider Communications Inc.
CONSOLIDATED BALANCE SHEETS
(in U.S. dollars)
Quarter ended Year ended
March 31, December 31,
2001 2000
(Unaudited) (Audited)
ASSETS
Current
Cash and cash equivalents $ 3,206,888 $ 7,720,902
Accounts receivable 1,950,259 1,996,473
Due from contract manufacturers 485,097 1,127,792
Inventories 1,830,959 2,193,502
Prepaid expenses and other assets 469,370 983,361
--------------------------------
7,942,573 14,022,030
Property, plant and equipment 2,237,668 2,395,373
Acquired labor force 317,326 400,659
Goodwill 3,494,452 4,114,983
--------------------------------
$ 13,992,019 $ 20,933,045
--------------------------------
--------------------------------
LIABILITIES
Current
Accounts payable and accrued
liabilities $ 3,113,816 $ 4,372,365
Consideration payable on business
combination 1,063,414 1,621,917
Deferred revenue 435,495 423,677
Current portion of obligation under
capital lease 201,765 272,851
--------------------------------
4,814,490 6,690,810
Convertible promissory notes 200,056 1,835,299
Obligation under capital lease 209,300 224,347
--------------------------------
5,223,846 8,750,456
--------------------------------
SHAREHOLDERS' EQUITY
Preferred Stock, $.001 par value
per share: authorized - 5,000,000
shares; issued and outstanding Nil
shares at March 31, 2001 and
December 31, 2000 - -
Common Stock, $.001 par value per
share: authorized - 200,000,000
shares; issued and outstanding -
58,306,002 shares at March 31, 2001
55,121,898 shares at
December 31, 2000 58,306 55,122
Additional paid in capital 52,478,499 46,014,398
Other equity 13,743,159 15,482,719
Accumulated other comprehensive
income (180,575) 44,858
Deficit (57,331,216) (49,414,508)
--------------------------------
8,768,173 12,182,589
$ 13,992,019 $ 20,933,045
--------------------------------
--------------------------------
WaveRider Communications Inc.
CONSOLIDATED STATEMENTS OF LOSS,
DEFICIT AND ACCUMULATED COMPREHENSIVE LOSS
(in U.S. dollars)
Quarter ended March 31
2001 2000
--------------------------------
(Unaudited) (Unaudited)
REVENUE
Product sales $ 1,776,161 $ 757,219
Internet sales 54,242 48,933
--------------------------------
1,830,403 806,152
COST OF PRODUCT AND INTERNET SALES 1,389,402 647,483
--------------------------------
GROSS MARGIN 441,001 158,668
--------------------------------
EXPENSES
Sales, general and administration 2,856,675 1,418,750
Research and development 2,086,330 1,396,178
Interest expense 3,493,043 14,752
Interest income (78,339) (126,151)
--------------------------------
8,357,709 2,703,529
--------------------------------
NET LOSS $(7,916,708) $ (2,544,861)
--------------------------------
--------------------------------
BASIC AND FULLY DILUTED LOSS
PER SHARE $ (0.14) $ (0.05)
--------------------------------
--------------------------------
Weighted Average Number of
Common Shares 55,757,444 49,263,629
--------------------------------
--------------------------------
FOR FURTHER INFORMATION PLEASE CONTACT:
WaveRider Communications Inc.
Carolyn Anderson
Media Inquiries
(416) 502-2978
canderson@waverider.com
or
WaveRider Communications Inc.
Hugo Idler
Investor Relations
(416) 502-3265 / 1 (888) 533-1910
hugoidler@waverider.com
Visit our Web Site: www.waverider.com
INDUSTRY: CMT
SUBJECT: NWS
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