8/13/09 - Tranzeo Wireless Technologies Inc. (TSX:TZT), a leading producer of high-speed wireless broadband communication systems, announced its financial results for the second quarter 2009.
- Revenue was $3.3 million compared with $6.0 million year over year and compared with $3.2 million in the prior quarter. The decrease in sales year over year was primarily due to reduced demand from the United States market which we attribute to the economic downturn.
- Bookings reached a record $6.6M in the second quarter. Orders received late in the quarter will be fulfilled in the third quarter with a backlog of $3.3M going into the third quarter.
- Gross profit declined to $1.0 million from $1.9 million for 2008 which was the result of a decrease in sales, coupled with lower margins on our new WiMAX products.
- We reported a net loss of $0.6 million compared to net earnings of $0.1 million for 2008.
- EBITDA was a loss of $0.1 million, or $0.00 per share, for 2009, compared to a gain of $0.6 million, or $0.02 per share for 2008.
- The Company issued 7,076,000 Units at a price of $0.40 per Unit for total gross proceeds of $2,830,400.
- The bridge loan of $2.0 million was repaid from the proceeds of the equity offering.
- Orders in the first two quarters of 2009 exceed 2008 orders for Aperto-branded WiMAX subscriber units.
- WiMAX product developed in partnership with PT. Teknologi Riset Global (TRG), has received Indonesian government approval based on product performance and meeting the 30% local content requirement. TRG/Tranzeo equipment is the only equipment to date that has been approved for deployment in Indonesia.
- Successfully replicated WiMAX subscriber unit production in Batam Indonesia with first production delivery in July.
- We have successfully executed on all of our cost reductions.
- Management expects to return to profitability in the third quarter.
Tranzeo Wireless Technologies Inc. (TSX:TZT) designs, builds and distributes a full range of high-bandwidth wireless data network products, including WiMAX products. Our innovative approach and in-house expertise ensures our products are reliable yet affordable, offer state-of-the-art features, and are easy to install, operate and deploy. We are continually adding products and features to provide our customers with the latest available innovations and end-to-end fixed wireless solutions, through a growing global network of distributors.