Welcome!

Machine Learning Authors: Elizabeth White, Ed Featherston, Pat Romanski, Liz McMillan, Progress Blog

News Feed Item

Webtech Wireless Announces Q4 and FY 2013 Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/26/14 -- Webtech Wireless Inc. (TSX: WEW) ("Webtech Wireless" or the "Company"), a leading provider of vehicle fleet location-based services and telematics technology, today announced its financial results for the three and twelve-month periods ended December 31, 2013.

The Company is reporting net income of $13.6 million for the twelve months ended December 31, 2013, including $13.2 million in net income from discontinued operations related to the sale of the Company's NextBus business to Cubic Transportation Systems, Inc., a division of Cubic Corporation on January 24, 2013.

Unless otherwise noted, figures quoted in this press release relate to the Company's continuing operations.

Q4 2013 and 2013 Financial and Operational Highlights

--  Adjusted EBITDA was $2.2 million for the year compared to $1.1 million
    in 2012 and $0.4 million in Q4 2013 compared to $0.0 million in Q4 2012.
    The continued focus on high margin revenue and cost management efforts
    have materially increased the Company's operating profitability.
--  The Company is reporting a net loss of $0.3 million or $0.00 per share
    and net income of $0.3 million or $0.00 per share from continuing
    operations for the three and twelve months ended December 31, 2013
    compared to net income of $2.9 million or $0.03 per share and a net loss
    of $0.5 million or $0.00 per share in the prior comparable periods,
    respectively.
--  Revenue was $30.1 million for 2013 compared to $28.8 million in 2012,
    and $7.2 million in Q4 2013 compared to $7.1 million in Q4 2012. The
    revenue increase was largely the result of hardware sales to a Fortune
    100 fleet customer and to the recently sold NextBus business.
--  Recurring revenue was relatively flat at $18.4 million in 2013 or 61% of
    total revenue in 2013 compared to $18.5 million or 64% of total revenue
    in 2012. Q4 2013 recurring revenue was also relatively flat at $4.7
    million or 65% of total revenue for the period compared to $4.6 million
    or 66% for Q4 2012.
--  Notable new sales, implementations and expansions during the quarter
    included continued expansion of the City of Cleveland and Commonwealth
    of Kentucky fleets; repeat sales with Strike Construction, Herzog
    Contracting, Wood Group Duval and Spady Transport; new contracts with
    the District of North Vancouver, Slegg Lumber, Zip Truck Lines and
    Empire Recycling Corporation; and continued sales to the new owners of
    NextBus.
--  The Company's subscriber base at December 31, 2013 totalled
    approximately 80,000 compared to 79,000 at September 30, 2013 and 72,000
    at December 31, 2012. The increase in subscribers since September 30,
    2013 and December 31, 2012 is due to the addition of subscribers from
    sales and implementations in 2013, as well as new data pump subscribers
    from the recently sold NextBus business.
--  Excluding the NextBus data pump subscribers, ARPU decreased to $20.00
    per subscriber for the year versus $21.45 per subscriber in the prior
    year, and $20.44 for Q4 2013 compared to $21.49 in Q4 2012. The decrease
    is the result of fleet expansions at Enterprise customers, which
    garnered a lower ARPU than pure SaaS subscribers.
--  Gross margin was 58% of total revenue for the year, an increase from 53%
    in 2012 and 58% of total revenue in Q4 2013 compared to 46% in Q4 2012.
    The increase over the prior comparable periods were driven by a higher
    proportion of high margin hardware delivered and cost savings
    initiatives relating to recurring revenues.
--  Cash operating expenses (sales and marketing, research and development,
    and general and administrative excluding non-recurring items) increased
    7% to $15.1 million in 2013 from $14.2 million in 2012 and 16% to $3.7
    million in Q4 2013 from $3.2 million in Q4 2012. The increase was due to
    an increase in R&D aimed at our new Driver Center product and sales and
    marketing headcount costs.

"We are pleased to be reporting positive income results from continuing operations for the year, as well as the large gain reported from the sale of NextBus", said Scott Edmonds, President and CEO, continuing, "Our product suite, led by our new Android solutions; our channel strategy, anchored by AT&T in the US and by Bell in Canada; and our focus on our three chosen verticals of winter maintenance, transport and oil and gas service fleets are all aligned at achieving our business goal of acquiring and retaining recurring revenue. Notable contracts in this quarter, include Strike Construction and City of Cleveland where we expanded the size of the fleet under subscription. Our Government team won new business with the District of North Vancouver and with the State of Vermont - wins which will add new subscribers in 2014, and our Commercial group continues to grow its customer base with sales to Slegg Lumber and Zip Truck Lines in the quarter, which again will have a long term impact on our subscriber numbers and revenues. We saw flat to little growth in our full service subscriber counts and recurring revenues in 2013 as we completed the flush out of non-strategic businesses and historical clients whose requirements do not necessarily align with our long term business vision."

Mr. Edmonds continued, "As we look toward 2014, we expect to see our two solutions - Quadrant and InterFleet become more tightly integrated and eventually merged, allowing us to continually add new subscribers without significantly impacting our expense line, and making the user experience richer and more flexible for our users."

Financial Highlights of Continuing Operations

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                      Three months ended           Twelve months ended
----------------------------------------------------------------------------
                  December 31,   December 31,   December 31,   December 31,
('000 of Cdn $)           2013           2012           2013           2012
----------------------------------------------------------------------------
Hardware revenue  $      2,073   $      2,130   $     10,107   $      8,818
Recurring
 revenue                 4,652          4,634         18,415         18,502
Services and
 other revenue             443            296          1,561          1,506
----------------------------------------------------------------------------
                         7,168          7,060         30,083         28,826
----------------------------------------------------------------------------

Gross margin ($)         4,146          3,223         17,325         15,265
Gross margin (%)            58%            46%            58%            53%

Total operating
 expenses(1)             4,608          1,683         17,726         16,657

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net (loss)
 income from
 continuing
 operations       $       (250)  $      2,857   $        312   $       (511)

Adjusted
 EBITDA(2)
 from continuing
 operations       $        440   $          7   $      2,244   $      1,124
----------------------------------------------------------------------------
(1)  Total operating expenses, including non-recurring items.
(2)  Adjusted EBITDA is not defined under IFRS. Adjusted EBITDA is defined
     by the Company as earnings (loss) before interest expense (income),
     taxes, depreciation, amortization, share-based payments, foreign
     exchange (gain) loss on operations, restructuring charges, and one-time
     expenses.

Revenue

Hardware revenues for the year increased 15% largely due to deliveries of hardware solutions to major customers, including a Fortune 100 corporate fleet customer and to the recently sold NextBus business. Hardware revenues for the quarter were in line with the prior year.

Recurring revenues were flat for the year and Q4 2013 compared to the prior periods. The Company has replaced the lost subscription revenue from the planned exit of the theft recovery vertical with subscribers from sales and implementations to both end users and enterprise customers over the past 12 months. The Company's shift away from hardware to a majority of subscription, software and services revenue continues to reflect management's focus on developing the Software as a Service ("SaaS") model.

Service and other revenues for the year and Q4 2013 increased 4% and 50% respectively, over the prior comparable periods as a result of higher volumes of Government project management and customization services provided.

Gross Margin

Gross margin percentage for the year and Q4 2013 were stronger compared to the prior comparable periods due to a higher proportion of high margin hardware revenue delivered and cost savings initiatives related to recurring revenue.

Operating Expenses

Operating expenses for continuing operations excluding depreciation and amortization, share-based payments and non-recurring items increased by 16% and 7% over the prior three and twelve month periods, respectively. The increase for the quarter and year was largely due to research and development projects primarily focused on the new Webtech Driver Center product and an increase in sales and marketing employee costs.

Cash and Working Capital

As at December 31, 2013, the Company's unrestricted cash position amounted to $23.2 million compared with $22.2 million at September 30, 2013 and $4.3 million at December 31, 2012. In addition, the Company has $2.1 million USD in restricted cash related to the holdback from the NextBus transaction.

As at December 31, 2013, the Company had net working capital of $27.1 million, compared with $26.4 million at September 30, 2013 and $9.6 million at December 31, 2012. As at March 25, 2014, Webtech Wireless had 105,579,268 common shares outstanding.

Non-GAAP Financial Measures

In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters. Details of such non-GAAP financial measures and how they are derived are provided in conjunction with the discussion of the financial information reported.

Results on a non-GAAP EBITDA basis are determined as follows:

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                         Three months ended         Twelve months ended
                    --------------------------------------------------------
                     December 31,  December 31,  December 31,  December 31,
('000 of Cdn $)              2013          2012          2013          2012
----------------------------------------------------------------------------
Net (loss) income
 from continuing
 operations           $      (250)  $     2,857   $       312   $      (511)
Add (deduct)
  Finance (income)
   expense                    (25)            9          (340)           48
  Income tax
   (recovery)
   expense                     (5)       (1,968)           34        (1,971)
  Depreciation and
   amortization               194          (200)          619         1,380
  Share-based
   payments                    (5)           71            65           358
  Foreign exchange
   (gain) loss               (182)          (56)         (407)          196
  Work force
   realignment                581            20           688           592
  Strategic review
   costs                       93             -           666             -
  Litigation
   settlement and
   other one-time
   costs                       39           170           607           186
  Impairment of
   intangible assets            -           594             -           594
  Restructuring cost
   including share-
   based payments               -           104             -           252
  One-time costs
   reclassified to
   discontinued
   operations                   -        (1,594)            -             -
----------------------------------------------------------------------------
Adjusted EBITDA(1)
 from continuing
 operations           $       440   $         7   $     2,244   $     1,124
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 (1) Adjusted EBITDA is not defined under IFRS. Adjusted EBITDA is defined
     by the Company as earnings (loss) before interest expense (income),
     taxes, depreciation, amortization, share-based payments, foreign
     exchange (gain) loss on operations, restructuring charges, and one-time
     expenses.

Financial Statements and Management Discussion & Analysis

The Consolidated Financial Statements for the three and twelve months ended December 31, 2013 and the related Management Discussion & Analysis for the period has been filed on SEDAR at www.sedar.com, and also on the Company's website at www.webtechwireless.com.

Notice of Conference Call

Webtech Wireless will hold a conference call today, March 26, 2014, at 11:00 am ET hosted by Mr. Scott Edmonds, President and Chief Executive Officer and Mr. Trevor Greene, Chief Financial Officer to discuss the Company's financial results and corporate developments. To access the conference call by telephone, dial +1.416.340.8527 or +1.800.769.8320. A taped replay of the conference call will be archived on the Company's corporate website at: www.webtechwireless.com.

About Webtech Wireless®

Webtech Wireless (TSX: WEW) is a leader in providing fleet management telematics, GPS and automatic vehicle location (AVL) solutions that improve efficiency, accountability and reduce costs. Our end-to-end solutions automate record keeping and regulatory compliance, reduce fuel burn and idling, mitigate risk, and keep drivers safe. Managers trust us to ensure people are accountable and vehicles are visible. Through the cloud, in the office, or straight to mobile devices, we deliver Fleet Intelligence Anywhere™. Our products are InterFleet®, for government winter maintenance, public works and waste management fleets; and Quadrant®, for commercial fleet operations and compliance (HOS, EOBR). Please visit www.webtechwireless.com.

All amounts in Canadian dollars (CAD$) unless otherwise noted. - The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. - Trademarks are the property of their owners.

Contacts:
Webtech Wireless Inc. - Investor Relations
Trevor Greene
Chief Financial Officer
+1 604.628.5195
[email protected]

Webtech Wireless Inc. - Press and Media
Mike Cornford
Director of Marketing
+1 604.419.8162
[email protected]
www.webtechwireless.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@CloudExpo Stories
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
Today traditional IT approaches leverage well-architected compute/networking domains to control what applications can access what data, and how. DevOps includes rapid application development/deployment leveraging concepts like containerization, third-party sourced applications and databases. Such applications need access to production data for its test and iteration cycles. Data Security? That sounds like a roadblock to DevOps vs. protecting the crown jewels to those in IT.
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...