OTTAWA, Ontario–(BUSINESS WIRE)–Edgewater Wireless Systems Inc. (TSX-V:YFI) (OTCQB:KPIFF), the developer
of WiFi3™ multi-channel WiFi chipsets and access point products for
high-density wireless networks is pleased to announced today that it has
released its Fiscal Year 2018 financial results. These results are for
the period ended April 30, 2018 and have been filed with the Canadian
Securities Administrators and are now available on SEDAR.
In conjunction with this filing, the Company has issued the following
letter to shareholders:
Dear fellow shareholders,
A little over 2.5 years ago, we pivoted the company to focus on
high-density WiFi applications based on the competitive advantages of
our WiFi3™ silicon solutions. Over the short period, we continue to
build and solidify our position as an industry innovator and leader
through our work with CableLabs / UpRamp, the Wireless Broadband
Alliance and innovative companies like Kroger Corporation and most
Engagements with large customers will drive the maximum scale for our
WiFi3™ silicon solutions and put us on the path to cash flow. It has
been an exciting year and year ended April 30, 2018 highlights are as
Kroger Co. (NYSE: KR): Entering the last quarter of Fiscal Year
2018, focused efforts to secure our first major WiFi3™ silicon
solutions customer (OEM) were rewarded with $1.1M in purchase orders
from Kroger Co. (NYSE: KR), the largest operator of supermarkets in
the USA. Over the next 6-12 months we will continue to fulfill the
Kroger and this represents a design win in a potential three
year, $25M opportunity. Our WiFi3™ powered radio card modules help
Kroger deliver the high-density WiFi required to support multiple
revenue generating services today and in the future.
Mediacom Communications (https://mediacomcable.com):
Outside the reporting period, following a successful 12-month Proof of
Concept, we hit another major milestone when we were awarded Approved
Wireless Vendor status with the 5th largest cable
operator in the USA, Mediacom Communications. The successful Mediacom
engagement has opened up the largest market opportunity for our
company yet. Working in close collaboration with Mediacom, we’ve
refined product features to match requirements for large operators and
are working to open up new opportunities across the Mediacom footprint.
WCS Europe (http://wcs-europe.com):
After the year end, we announced our latest distribution partner WCS
Europe (“WCS”), a Wesley Clover Affiliate, for distribution of
high-density WiFi access points in Europe. WCS believes WiFi3™ is the
best solution to address high-density WiFi applications. Since 1972,
Sir Terry Matthews has created or funded more than 100 companies,
including Mitel and Newbridge Networks. WCS Europe, a Wesley Clover
affiliate, focuses on the latest generations of cloud and SaaS
applications, including business processes management, customer
relationship and engagement solutions, data management and analytics
applications, as well as fixed and wireless communications services
and equipment. WCS Europe’s team has extensive experience in the
telecommunications, convergence, customer relationship, mobile
applications and various industries and we expect WCS to help us grow
customer relationships in France and other parts of Europe.
In the year, not only did we secure our largest customers to date, but
we also continued our focus on the Cable Industry. We are now
working with four out of the top five largest cable operators — at
stages ranging from commercial discussions to pilots and WiFi3™
innovation projects. We are driving toward profitable partnerships and
moving from our Enterprise WiFi (Business) focus to include the larger
Residential WiFi (Home) market. Cableco’s biggest problem is dealing
with the proliferation of WiFi devices – they are everywhere and it’s
not changing – our WiFi3™ is at the forefront in solving the problem for
We have strengthened our team with the addition of two new Board of
Directors members. Steve Andrews, a 30-year global telecom exec who was
instrumental in founding the Wireless Broadband Alliance whose members
include BT, Verizon, Intel, and many others. And Chris McGillivray, a
finance professional beefing up our shareholder communications efforts.
Corresponding with our commercial successes, we’ve started to raise our
profile in the USA with investors and potential strategic partners. With
the endorsement of industry experts, like Cablelabs / UpRamp, and the
commercial validation of major players, like Kroger and Mediacom, the
introduction has been positive and the next 6-12 months will see our
continued focus on building relationships instrumental in our long-term
Financial results for the year reflect our intense focus on closing
major customers, like Kroger — customer engagements which will bring
scale to our silicon solutions (and maximize returns to us, the
shareholders). Exiting 2018, our backlog was $1,162,653 compared to
$100,000 in 2017 — a 10X increase and a sign we’re actually on to
something. Fiscal year revenue declined to $72,600 largely attributed to
global supply shortages of key third party components. We faced
increased production lead times from critical suppliers of key
components from a historical 4-8 weeks to 12-18 weeks. Since the end of
Fiscal Year on April 30th, shipments are beginning to achieve
volume and we are providing a stream of product to our customers. We are
working closely with our contract manufacturer and supply chain to
address the challenges.
The team’s excitement is palpable as we’re watching shipments go out the
door (from our contract manufacturer). It’s an incredible time for all
of us as we are making the leap from being a small team with an
innovative idea to being an early stage Production Company – we’re
committed to executing on our plan to bring WiFi3™ to the world.
Our recently closed financing will help strengthen our team — yes, we
are growing — and strengthen supply lines. The funds will be used to
execute on our plan focusing on fulfilling customer engagements like
Kroger and Mediacom, increase communications and building long-term
relationships with key customers and strategic partners.
Thanks to all those who, in the depths of summer, participated in the
round! Our latest round included a mix of existing supporters and new
ones. New supporters included five high net worth / tech focused
institutions — new supporters who see what we’ve all built and the
massive opportunity ahead.
We’re revolutionizing WiFi and we’re at the forefront in the transition
from single lane, gravel roads to multi-lane superhighways.
Thank you for your continued support.
Andrew Skafel, President and Chief Executive Officer
Wireless Systems Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
About Edgewater Wireless Systems Inc.:
Edgewater Wireless develops and commercializes leading edge technologies
and intellectual property for the communications market. Edgewater
Wireless delivers advanced product solutions designed to meet the
high-density, high quality of service (QoS) and high-reliability needs
of service providers and their customers. Leveraging over twenty-four
(24) patents, Edgewater’s WiFi3™ is redefining WiFi technology with its
wide-band, multi-channel radio and high-capacity Access Point solutions,
and delivering next generation WiFi, today.
The best solution for High-Density WiFi networks, Edgewater Wireless
WiFi3 powered access point products enable innovative service providers
to plan, build and deploy reliable, high-capacity services (like VoWiFI)
for high-density wireless data demand in any environment.
Do more with less! Fewer access points delivering high quality service
at a lower overall deployment cost make our patented WiFi3™ technology
the right choice for your next WiFi network.
Explore the evolution
of Wi-Fi at www.EdgewaterWireless.com
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. The use of any of the words “expect,” “anticipate,” “continue,”
“estimate,” “objective,” “ongoing,” “may,” “will,” “project,” “should,”
“believe,” “plans,” “intends” and similar expressions are intended to
identify forward-looking information or statements. Although Edgewater
Wireless believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable,
undue reliance should not be placed on the forward-looking statements
and information because Edgewater Wireless can give no assurance that
they will prove to be correct. By its nature, such forward-looking
information is subject to various risks and uncertainties, which could
cause Edgewater Wireless’ actual results and experience to differ
materially from the anticipated results or expectations expressed. These
risks and uncertainties, include, but are not limited to access to
capital markets, market forces, competition from new and existing
companies and regulatory conditions. Readers are cautioned not to place
undue reliance on this forward-looking information, which is given as of
the date it is expressed in this news release or otherwise, and to not
use future-oriented information or financial outlooks for anything other
than their intended purpose. Edgewater Wireless undertakes no obligation
to update publicly or revise any forward-looking information, whether as
a result of new information, future events or otherwise, except as
required by law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
Edgewater Wireless Systems Inc.
President and Chief Executive Officer