RANCHO MIRAGE, CA, April 11, 2012 /PRNewswire/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG), today released its condensed interim consolidated financial results for the second quarter ended February 29, 2012. All dollar figures are reported in Canadian currency.
Woosh Wireless Integration
As previously announced, the integration of the business and related assets of Woosh Wireless Limited and its 25,000 New Zealand customers into the Craig Wireless operations environment through Woosh Wireless (NZ) Limited has been substantially and successfully completed. Woosh Wireless (NZ) Limited is 51% owned by Craig Wireless, with the first day of operations as part of the Craig Wireless Group starting on December 1, 2011.
Coachella Valley Retail Store
The Company is preparing to launch its first retail store in Palm Springs, California in April 2012 to take advantage of its leading edge 4G Wimax network by providing very fast and well-priced 4G Internet services to the residential market.
Normal Course Issuer Bid
On February 29, 2012, the Company authorized a normal course issuer bid for the repurchase and cancellation of up to 2,388,290 subordinate voting shares from February 29, 2012 to February 28, 2013 (unless earlier terminated), representing up to 5% of its 47,765,814 subordinate voting shares issued and outstanding as at February 22, 2012. The Company believes that, at certain times, the market price of its subordinate voting shares may not reflect the value of its existing business and its future prospects and that the purchase of its subordinate voting shares represents an effective use of its funds and is in the best interests of the Company and its shareholders.
As at February 29, 2012 the Company had cash reserves of approximately $12.2 million and no debt. The Company intends to utilize the cash reserves to continue to execute on its strategies as outlined in the Company's most recently filed management discussion and analysis dated April 10, 2012.
Revenues, including $3,904,874 of Woosh Wireless (NZ) Limited revenues, were $3,912,558 during the quarter. Total assets amounted to $44,410,698 and total shareholders' equity was $38,495,957 at the quarter end. Assets include approximately $2.4 million of new 4G Wimax equipment available to be deployed. The Company reported a net loss of $3,084,248 ($0.06 per share) for the quarter ended February 29, 2012.
T. Boyd Craig stated "We are very pleased with the acquisition of the Woosh Wireless business and the potential business opportunities it provides us in New Zealand. We also look forward to the opening of our Palm Springs retail store where we believe the real 4G Internet experience will be extremely well received by customers."
About Craig Wireless Systems Ltd.:
Craig Wireless and its affiliates (collectively, the "CWS Group") offer a broad range of telecommunications services, including, broadband internet access, business connectivity solutions, hosting, security and telecommunications solutions. Through certain members of the CWS Group, Craig Wireless holds or leases licenses for spectrum in the 2.5 GHz, 2.6 GHz or 3.5 GHz bands in Riverside County in Southern California, United States and in Greece. The CWS Group also has spectrum interests in Norway and New Zealand. Spectrum in these ranges is effective for delivery of point-to-multipoint signals, possesses robust bandwidth capability and supports emerging 4G-based applications, including portable and mobile applications.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Notice on forward-looking statements
This release includes forward-looking statements regarding Craig Wireless and its business. Such statements are based on management's current expectations. The forward looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Craig Wireless and its business. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Craig Wireless does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Craig Wireless Systems Ltd.