Q1 ResultsPress Release Source: Tranzeo Wireless Technologies Inc. On Thursday May 13, 2010, 4:05 pm
PITT MEADOWS, BRITISH COLUMBIA--(Marketwire - 05/13/10) - Tranzeo Wireless Technologies Inc. (TSX:TZT - News), a leading producer of high-speed wireless broadband communication systems, today announced its financial results for the first quarter 2010.
Financial Highlights:
-- Revenue was $3.4 million compared with $3.2 million year over year.
-- Gross profit was
.9 million compared with $1.0 million year over year
-- EBITDA (excluding stock based compensation) was a loss of
.8 million
for 2010, compared to
.0 million for 2009. The increase in the loss
was the result of expensing all Research and Development costs in 2010
versus capitalizing those costs as deferred costs in 2009. The amount
capitalized in 2009 was
.8 million.
Recent Developments:
-- Received US$ 4.5M purchase order from Nth Air for Nationwide WiMAX
Network
-- PK Telkom selects TRG for first WiMAX deployment in Indonesia
-- Tranzeo WiMAX equipment approved for 3.65GHz Spectrum in Canada
-- Former Managing Director of Europe, Middle East and Africa for Research
In Motion joins Tranzeo Board
-- Aperto and Tranzeo receive US$4.5M in purchase orders
-- Tranzeo acquires Aperto Networks, which positions Tranzeo to provide a
complete WiMAX solution for major telecommunications providers
-- Aperto and Tranzeo receive US$1.5M purchase order from operator in India
-- Aperto and Tranzeo receive US$2.9M purchase order for deployments in
North America
Guidance - Review Of April 16 2010 Published View
We reiterate that the acquisition of Aperto increases Tranzeo's backlog of new purchase orders for WiMAX products to US$45.5 million. Tranzeo plans to complete deliveries under these purchase orders during the balance of the year and into 2011. Tranzeo anticipates it will deliver the majority of product for these purchases orders, in dollar terms, during Q3 and Q4 of 2010. Revenues from these purchase orders will be incremental to Tranzeo's existing WiFi revenue base. Based on these purchase orders, Tranzeo expects revenues for Q2 in the range of $5 million to $7 million and revenues for 2010 in the range of $40 million to $45 million. Investors are advised to review the "forward looking statements" paragraph below in assessing this outlook.
Business Update Conference Call - June 1 2010
On June 1 2010 Tranzeo will hold a business update conference call. A press release will be issued proving the exact time and conference call phone in details.