Welcome!

Containers Expo Blog Authors: Liz McMillan, Elizabeth White, Cynthia Dunlop, Stefan Dietrich, Carmen Gonzalez

News Feed Item

Webtech Wireless Announces Q1 2014 Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/09/14 -- Webtech Wireless Inc. (TSX: WEW), ("Webtech Wireless" or the "Company"), a leading provider of vehicle fleet location-based services and telematics technology, today announced its financial results for the three months ended March 31, 2014.

Unless otherwise noted, figures quoted in this press release relate to the Company's Telematics business, referred to as continuing operations.

Q1 2014 Financial and Operational Highlights


--  EBITDA was a loss of $0.4 million for Q1 2014 compared to a loss of $0.1
    million in Q1 2013.

--  The Company is reporting a net loss of $0.4 million or $0.00 per share
    for the three months ended March 31, 2014 compared to a net loss of $0.0
    million or $0.00 per share in the prior comparable period.

--  Revenue was $6.7 million in Q1 2014 compared to $7.4 million in Q1 2013.
    The revenue decrease was largely the result of lower solution sales to
    Commercial customers and OEM hardware deliveries.

--  Recurring revenue was flat at $4.7 million in Q1 2014 or 69% of total
    revenue in Q1 2014 compared to $4.7 million or 63% of total revenue in
    Q1 2013.

--  Notable new sales, implementations and expansions during the quarter
    included new contracts with Vermont Department of Transportation,
    Gabriel Construction, Beck Brothers Oil Field, VAL Transport and ProTrux
    Systems; continued expansions of a Fortune 100 Fleet customer and Ville
    de Quebec; and repeat sales with Troyer Ventures, EMJ Metals, Trackyou,
    NI Business Communications, and the Town of Richmond Hill.

--  The Company's subscriber base at March 31, 2014 totalled approximately
    80,000 compared to 80,000 at December 31, 2013 and 78,000 at March 31,
    2013. The increase in total subscribers since March 31, 2013 is due to
    the net addition of full service Commercial subscribers, as well as
    enterprise and data pump subscribers.

--  Excluding enterprise and data pump subscribers, full service average
    revenue per unit ("ARPU") increased to $25.87 per subscriber for the
    quarter versus $25.19 per subscriber in the prior year. The increase is
    the result of solution implementations and additional service offerings
    provided to new and existing Commercial and Government customers over
    the period.

--  Gross margin was $3.7 million or 56% of total revenue for the quarter,
    compared to $4.2 million or 57% in Q1 2013. The decrease over the prior
    comparable period was driven by the impact of lower hardware revenues in
    the current period.

--  Cash operating expenses (sales and marketing, research and development,
    and general and administrative expenses) decreased 4% to $4.1 million in
    Q1 2014 from $4.3 million in Q1 2013.

--  To date, as part of the Normal Course Issuer Bid, the Company has
    repurchased 2,099,228 of its common shares for a total cost, including
    transaction fees, of $0.9 million. All common shares repurchased will be
    cancelled.

"We are disappointed with overall revenues, which were below target due to a delayed deal which has since closed, and a second which remains open", said Scott Edmonds, President and CEO, continuing, "That said, we are very pleased with the progress on our new products and channel management initiatives. For instance, the backlog and funnel for Driver Center, sold through AT&T is building strongly, and there is a great deal of excitement within that channel for the product. Our early installations of Driver Center have gone very well with very positive feedback from customers. The ease of install, the enhanced functionality in-cab and the new pricing structure - all-in-one for hardware, software and air-time make it a very competitive product for us."

Mr. Edmonds, continued, "We are also pleased with take up of our government solutions with the State of Vermont beginning installations on the project we won with them in late 2013, and our lead generation initiatives are building a strong high quality and very visible funnel, which gives us confidence that we can recover from this drop in quarterly revenue in the back half of this year."

Financial Highlights



------------------------------------------------------
                                 Three months ended
------------------------------------------------------
                                 March 31,   March 31,
('000 of Cdn $)                       2014        2013
------------------------------------------------------
Recurring revenue                  $ 4,680     $ 4,715
Hardware revenue                     1,795       2,419
Services and other revenue             259         284
------------------------------------------------------
                                     6,734       7,418
------------------------------------------------------

Gross margin ($)                     3,740       4,245
Gross margin (%)                       56%         57%

Total operating expenses             4,371       4,440
------------------------------------------------------
------------------------------------------------------

Net loss                           $ (363)      $ (18)

EBITDA (1)                         $ (433)      $ (61)
------------------------------------------------------
------------------------------------------------------
(1)   EBITDA is a non-GAAP measure and is therefore not universally defined.
      EBITDA is defined as earnings before finance income, taxes,
      depreciation and amortization, and foreign exchange gain.

Revenue

Recurring revenues were flat for the quarter compared to the prior comparable period. ARPU from full service subscribers increased to $25.87 per subscriber for the quarter versus $25.19 in the prior comparable period. The increase in ARPU was the result of solution sales to new customers and the sale of additional feature options to existing Commercial and Government customers, combined with a planned departure of low ARPU Commercial customers outside of North America. The Company's focus continues to be on the acquisition and retention of high margin recurring revenue and the development of a Software as a Service model.

Hardware revenues for the quarter decreased largely due to lower Commercial and hardware-only OEM deliveries.

Service and other revenues were flat for the quarter compared to the prior comparable period.

Gross Margin

Gross margin for the quarter was down compared to the prior comparable period due to the impact of lower hardware revenues combined with a relatively fixed cost base. The gross margin percentage for the quarter was flat compared to the prior comparable period due to a favourable high margin revenue mix, where recurring revenues comprised of 69% of total revenues for the quarter compared to 63% in 2013 Q1.

Operating Expenses

Cash operating expenses decreased by 4% over the prior comparable quarter. The decrease for the quarter was largely due to litigation and settlement expenditures, and strategic review costs in Q1 2013 which were not repeated in the current period. The Company has also redirected resources to sales and marketing activities to increase lead generation capacity following the launch of the Webtech Driver Center™ solution. Cash operating expenses have been maintained at a level below the Company's recurring revenue base, a key target for cost control.

Cash and Working Capital

As at March 31, 2014, the Company's unrestricted cash position amounted to $22.8 million compared with $23.2 million at December 31, 2013. In addition, the Company has $2.1 million USD in restricted cash related to the holdback from the sale of the NextBus business in January 2013.

As at March 31, 2014, the Company had net working capital of $26.7 million, compared with $27.1 million at December 31, 2013. As at May 8, 2014, Webtech Wireless had 103,605,603 common shares outstanding.

Non-GAAP Financial Measures

In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters. Details of such non-GAAP financial measures and how they are derived are provided in conjunction with the discussion of the financial information reported.

Financial Statements and Management's Discussion & Analysis

The Condensed Interim Consolidated Financial Statements for the three months ended March 31, 2014 and the related Management's Discussion & Analysis for the period has been filed on SEDAR at www.sedar.com, and also on the Company's website at www.webtechwireless.com.

Notice of Conference Call

Webtech Wireless will hold a conference call today, May 9, 2014, at 11:00 am ET hosted by Mr. Scott Edmonds, President and Chief Executive Officer and Mr. Trevor Greene, Chief Financial Officer to discuss the Company's financial results and corporate developments. To access the conference call by telephone, dial +1.416.340.8530 or +1.800.769.8320. A taped replay of the conference call will be archived on the Company's corporate website at: www.webtechwireless.com.

About Webtech Wireless®

Webtech Wireless (TSX: WEW) is a leader in providing fleet management telematics, GPS and automatic vehicle location (AVL) solutions that improve efficiency, accountability and reduce costs. Our end-to-end solutions automate record keeping and regulatory compliance, reduce fuel burn and idling, mitigate risk, and keep drivers safe. Managers trust us to ensure people are accountable and vehicles are visible. Through the cloud, in the office, or straight to mobile devices, we deliver Fleet Intelligence Anywhere™. Our products are InterFleet®, for government winter maintenance, public works and waste management fleets; and Quadrant®, for commercial fleet operations and compliance (HOS, EOBR). Please visit www.webtechwireless.com

All amounts in Canadian dollars (CAD$) unless otherwise noted. - The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. - Trademarks are the property of their owners.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...