Welcome!

Virtualization Authors: Elizabeth White, Liz McMillan, Peter Dyer, Michael Jannery, Ian Khan

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
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...