KIK spent the bulk of 2011 working on the acquisition of of Edgewater Wireless, an Ottawa company with twenty patents in the wireless space. KIK, a company that had been around since 1980, gets a new lease on life with the acquisition, which was completed on October 13th. KIK will change its name to Edgewater Wireless, but investors aren’t waiting around for the new ticker symbol; shares of the company have nearly doubled since Christmas, to close at $.40 cents yesterday.
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Financial statements for the new entity do not reveal revenue, but show a company that lost $697,975 in the nine months ended October 31st, 2011, and has $5.3 million in cash.
Edgewater Wireless wifi access points look to to address the problem of niche markets who have a growing thirst for connectivity, and the overrun of bandwidth use from existing networks. The company’s recent deal with Mexico’s Division Integral de Telefonia SA de CV allows the Mexican systems integrator to better target the needs of government agencies and large private enterprises. These types of verticals, along with the defense, utility and mining markets are Edgewater’s wheelhouse.
New evidence suggests the timing of Edgewater’s debut in the public markets might be opportune.
After two years of decline, Denver based research firm IHS says global spending on wireless wireless infrastructure gear is set to return as carriers migrate their networks to newer-generation technologies. The firm says the market is projected to grow to $45 billion by 2015, up from $38.9 billion in 2010, and after a disastrous 2009, which saw a 7.2 $ decline in wireless infrastructure spending.
At press time, shares of KIK Polymers were $.395 cents as 778,000 shares changed hands.
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