Click here to close now.

Welcome!

IoT User Interface Authors: Liz McMillan, Adrian Bridgwater, Elizabeth White, Hovhannes Avoyan, AppDynamics 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.

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 BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust...
After a couple of false starts, cloud-based desktop solutions are picking up steam, driven by trends such as BYOD and pervasive high-speed connectivity. In his session at 15th Cloud Expo, Seth Bostock, CEO of IndependenceIT, cut through the hype and the acronyms, and discussed the emergence of full-featured cloud workspaces that do for the desktop what cloud infrastructure did for the server. He also discussed VDI vs DaaS, implementation strategies and evaluation criteria.
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Collecting data in the field and configuring multitudes of unique devices is a time-consuming, labor-intensive process that can stretch IT resources. Horan & Bird [H&B], Australia’s fifth-largest Solar Panel Installer, wanted to automate sensor data collection and monitoring from its solar panels and integrate the data with its business and marketing systems. After data was collected and structured, two major areas needed to be addressed: improving developer workflows and extending access to a b...
When an enterprise builds a hybrid IaaS cloud connecting its data center to one or more public clouds, security is often a major topic along with the other challenges involved. Security is closely intertwined with the networking choices made for the hybrid cloud. Traditional networking approaches for building a hybrid cloud try to kludge together the enterprise infrastructure with the public cloud. Consequently this approach requires risky, deep "surgery" including changes to firewalls, subnets...
Move from reactive to proactive cloud management in a heterogeneous cloud infrastructure. In his session at 16th Cloud Expo, Manoj Khabe, Innovative Solution-Focused Transformation Leader at Vicom Computer Services, Inc., will show how to replace a help desk-centric approach with an ITIL-based service model and service-centric CMDB that’s tightly integrated with an event and incident management platform. Learn how to expand the scope of operations management to service management. He will al...
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connecte...
High-performing enterprise Software Quality Assurance (SQA) teams validate systems that are ready for use - getting most actively involved as components integrate and form complete systems. These teams catch and report on defects, making sure the customer gets the best software possible. SQA teams have leveraged automation and virtualization to execute more thorough testing in less time - bringing Dev and Ops together, ensuring production readiness. Does the emergence of DevOps mean the end of E...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for companies without hyper-scale resources. In his session at 15th Cloud Expo, David Cauthron, CTO and Founder of NIMBOXX, highlighted how a mid-sized manufacturer of global industrial equipment bridged the gap from virtualization to software-defined services, streamlining operations and costs while connect...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
paradigm shifts in networking, to cloud and licensure, and all the Internet of Things in between. In 2014 automation was the name of the game. In his session at DevOps Summit, Matthew Joyce, a Sales Engineer at Big Switch, will discuss why in 2015 it’s complexity reduction. Matthew Joyce, a sales engineer at Big Switch, is helping push networking into the 21st century. He is also a hacker at NYC Resistor. Previously he worked at NASA Ames Research Center with the Nebula Project (where OpenSta...
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will address the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affec...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the ...
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...
EMC Corporation on Tuesday announced it has entered into a definitive agreement to acquire privately held Virtustream. When the transaction closes, Virtustream will form EMC’s new managed cloud services business. The acquisition represents a transformational element of EMC’s strategy to help customers move all applications to cloud-based IT environments. With the addition of Virtustream, EMC completes the industry’s most comprehensive hybrid cloud portfolio to support all applications, all workl...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...