Company Maintains Workforce and Operational Capacity Amid Industry Shutdowns
Wi2Wi Implements Measures to Ensure Employee Safety and Support Customer Demands
TORONTO, ON / ACCESSWIRE / August 14, 2020 / Wi2Wi Corporation today announced its unaudited consolidated financial results for the quarter ending June 30, 2020. The company remained operational amid the global pandemic and continued to support customers' evolving needs.
Key Financial Highlights
In Q2 FY20, Wi2Wi generated $1.808 million in revenue and a gross profit of $325,000. Total assets increased 51% from Q2 FY19, from $8.220 million in Q1 FY19 to $12.409 million in Q2 FY20. While Wi2Wi effectively managed cash on hand and remained cash flow positive, the company incurred a loss of $243,000 over Q2 FY20. This loss can mainly be attributed to the COVID-19 related shut down impacting the company's key customers.
Despite shutdowns in the avionics, space and military industries, Wi2Wi has maintained operational capacity throughout the pandemic. The company was designated a part of the Critical Infrastructure Sector by the U.S. Department of Homeland Security. To ensure wellbeing of both customers and employees, Wi2Wi effectively implemented safety measures and prevented any COVID-19 outbreaks within the workforce.
Throughout Q2 FY20, the company demonstrated a new level of adaptability by successfully incorporating necessary changes in product mix shipped. Wi2Wi continues to operate debt-free and fund operations through the income it generates.
In Q2 FY20, cash on hand increased by 27.7% from Q2 FY19. Shareholder's equity increased from $6.551 million to $7.018 million, representing a growth of 7.1% in FY20 over the same period in FY19.
Zachariah Mathews, President and CEO of Wi2Wi said: "FY20 has posed many challenges, yet Wi2Wi has taken these obstacles in stride. We are confident that we can continue to fund our operations without using the line of credit available to us and are proud to share that we have maintained our entire workforce. When lockdowns are lifted, we are fully prepared to meet the anticipated surge in customer demands. In the meantime, we will continue to be nimble and face issues head on, making necessary changes to ensure customer needs are met and employees are safe."
Q2 FY20 Financial Overview (Unaudited)
(In thousands of U.S. dollars) | 3 Months ending June 30, 2020 | 3 Months ending June 30, 2019 | ||||||
Revenue | $ | 1,808 | $ | 2,922 | ||||
Net income | (243 | ) | 124 | |||||
Net cash provided by (used in) operations | (280 | ) | (315 | ) | ||||
Total assets | 12,409 | 8,220 | ||||||
Cash on hand | 2,587 | 2,026 | ||||||
Total current liabilities | 1,910 | 1,525 | ||||||
Shareholders' equity | 7,018 | 6,551 | ||||||
Detailed and historical financial information is available here.
View visual detailing Wi2Wi's Q1 FY20 results here.
Investor & Media Contact
Dawn Leeder, Chief Financial Officer
+1-608-203-0234
dawn_l@wi2wi.com
About Wi2Wi Corporation
Wi2Wi enables customers to substantially reduce their wireless R&D expenses and time to market. Wi2Wi designs, manufactures and markets deeply integrated, end-to-end wireless connectivity solutions as well as customizable, high-performance timing and frequency control devices. Wi2Wi provides real time technical support throughout the entire product life cycle for customers across the Internet of Things (IoT), Industrial Internet of Things (IIoT), Avionics, Space, Industrial, Medical and Government sectors.
Wi2Wi was founded in 2005 and is strategically headquartered in San Jose, California with satellite offices in Middleton, Wisconsin and Hyderabad, India. Wi2Wi's manufacturing operations, its laboratory for reliability and quality control, together with design and engineering for timing and frequency control devices are located in Middleton, Wisconsin. The branch office, located in Hyderabad, India, focuses on developing end to end wireless connectivity subsystems and solutions.
Wi2Wi has partnered with best-in-class global leaders in technology, manufacturing and sales. The company uses a global network of manufacturer's representatives to promote its products and services, and has partnered with world class distributors for the fulfillment of orders along with direct sales.
Forward-Looking Statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with the ability to access sufficient capital, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, stock market volatility. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward- looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Wi2Wi Corporation
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