Wi2Wi Corporation Announces Results for the Quarter Ending March 31,2016
TORONTO, ON / ACCESSWIRE / May 30, 2016 / Wi2Wi Corporation ("Wi2Wi" or the "Company")(TSX-V:YTY) announces results for the quarter ending March 31, 2016.
The decrease in revenues for the three month period ending March 31, 2016 as compared to same period in 2015 was due to:
- Shipment of a number of 2014 back-orders in the first quarter of 2015.
- The Company has not entered the low margin market for the wireless connectivity products which is well supported by the large manufacturers with capacity to manufacture in large volumes.
- The company decided to fully exit from extremely low margin business from Frequency Control Devices.
- While gross margin as a percentage of revenue has decreased due to business changes, the progress being made optimizing manufacturing processes should help increase the margins in the future.
- Decrease in revenue from connectivity products of $1.5 million. A number of connectivity products had reached end of life. The Company had announced introduction of a number of new broader range of products.
Investment in R&D: The Company commenced a modest product development program. The current investment in R&D is anticipated to positively impact operations in late 2017. The Company has established a Design and Engineering ("D&E") center in Hyderabad, India. Wi2Wi's team at this D&E center will focus on developing wireless connectivity solutions addressing the exploding demand in IoT and M2M markets. The Company recently released a number of new products. A number of potential customers are in the process of evaluating the Company's new products. However, the Company does not recognize a design win until the end customer certification process is complete. These products will take in excess of 18 months to yield revenue. Historically, life of connectivity products are in excess of 8 years, and in excess of 15 years for frequency control and timing devices. The Company is actively looking to raise capital to expedite the new product development for both Wireless connectivity devices and Frequency control devices.
"The Company is activity looking to raise capital. Lack of investment capital has restricted the Company's growth. However, setting up the Hyderabad office will allow the Company to cost effectively develop new products. Company's effort in 2016 will be focused on stabilizing the business, win back customer confidence and promote the new products that were announced recently and developing new products. These and other products currently in development will position the Company in the IoT market" said Mr. Zachariah Mathews, President & CEO of the Company.
For further information, please contact:
President and Chief Executive Officer