MISSISSAUGA, ON / ACCESSWIRE / November 26, 2018 / DataWind Inc. (NEX: DW.H), a leader in the delivery of internet access in emerging markets, reported financial results for its fiscal 2019 Q2 results ending September 30, 2018. All amounts are in thousands of Canadian dollars.
Financial and Operational Highlights
- Revenues of $843 during the three months ending September 30, 2018 representing an increase of 4.3% over the three months ending June 30, 2018.
- Quarterly gross margin in Q2 2019 is 22.2% compared to 25.6% in Q1 2019 and 26.7% in Q2 2018.
- Adjusted EBITDA for the quarter ended September 30, 2018 was ($575) representing an increase of $1,318 over the EBITDA of ($1,893) for the quarter ended June 30, 2018.
Management Commentary
The Company continues to recover from the impact of November 2016's demonetization by the Indian government, impact of GST in India and consolidation in India's telecom sector. The resulting shift to a TV infomercial based business model has allowed the Company better control on its cash flow and payment collections, as it strives to reach breakeven.
'We continue to attempt to diversify our market beyond India, with a key focus on Latin America. As financial constraints limit our ability to grow our hardware business, our prime focus in Latin America is the implementation of browser acceleration technology and web delivery platform with mobile virtual network operators.' said Suneet Singh Tuli, president and CEO of DataWind. For more information, please refer to the company's MD&A and full financial statements that have been filed with SEDAR.
Trading Update
For companies trading on the NEX, the deadline for filing their financial reports for the quarter ending September 30, 2018 would be November 29, 2018. But as the Company was still listed on the TSX on September 30, 2018, the non-venture filing deadline of November 14, 2018 applies. Trading of the Company's shares have been halted pending filing of its financial reports and a reinstatement application. Having filed its updated financial reports today, the Company will file a reinstatement application shortly.
About DataWind
DataWind, Inc. is a leader in providing affordable mobile Internet connectivity in emerging markets. The company's patented, cloud-based technology reduces up to 97% the amount of data needed for web browsing, providing a broadband experience on any network -- even on legacy 2G networks that are still prevalent in some developing countries. DataWind also provides economical smartphones and tablets. DataWind's unique solution offers broad social and economic benefits for the billions of people around the world for whom an Internet connection was previously out of reach. DataWind is traded on the NEX (NEX: DW.H). For more information, visit www.datawind.com.
Adjusted EBITDA
Adjusted net loss before interest, taxes, depreciation and amortization ('Adjusted EBITDA') is a non-IFRS measure and excludes finance costs, interest income, income tax expense or recovery, depreciation and amortization and income and expenses of a non-recurring, unusual or one-time nature. Adjusted EBITDA is a measure used by management, the retail industry and investors as an indicator of the Company's operating performance, ability to incur and service debt, and as a valuation metric. While Adjusted EBITDA is a non-IFRS measure, management believes that it is an important indicator of operating performance because it excludes the effect of financing and investing activities by eliminating the effects of interest and depreciation and removes the impact of certain non-recurring items that are not indicative of our ongoing operating performance. Therefore, management believes Adjusted EBITDA gives investors greater transparency in assessing the Company's result of operations.
These measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. Adjusted EBITDA should not be considered in isolation or as an alternative to measures prepared in accordance with IFRS.
Forward-Looking Information
This press release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements, including those identified by the expressions 'anticipate', 'believe', 'plan', 'estimate', 'expect', 'intend' and similar expressions to the extent they relate to the Company or its management. The forward- looking statements are not historical facts, but reflect management's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company's expectations, except as prescribed by applicable securities laws.
Key assumptions made in preparing the forward-looking statements contained in this Press Release include, but are not limited to, the following: The Company will continue to successfully increase its sales volumes, the Company will be able to maintain its gross margin, and the Company will continue to effectively manage the transition from private to public entity by hiring key senior and middle management and effectively rolling out and adopting appropriate policy changes.
No securities regulatory authority has either approved or disapproved the contents of this press release/media advisory.
Contact:
Suneet S. Tuli
Chief Executive Officer
DataWind Inc.
+1(905) 670-0809
SOURCE: DataWind Inc.
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