Welcome!

AJAX & REA Authors: Rajesh Lain, Sebastian Kruk, RealWire News Distribution, Harald Zeitlhofer

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.

Cloud Expo Latest Stories
With the explosion of the cloud, more businesses are transitioning to a recurring revenue model to generate reliable sales, grow profits, and open new markets. This opportunity requires businesses to get to market quickly with the pricing and packaging options customers want. In addition, you will want to take advantage of the ensuing tidal wave of data to more effectively upsell, cross-sell and manage your customers. All of this is possible, but only with the right approach. At 15th Cloud Expo, Brendan O'Brien, Co-founder at Aria Systems and the inventor of cloud billing panelists, will lead a panel discussion on what it takes to launch and manage a successful recurring revenue business. The panelists will offer their insights about what each department will need to consider, from financial management to line of business and IT. The panelists will also offer examples from their success in recurring revenue with companies such as Audi, Constant Contact, Experian, Pitney-Bowes, Teleko...
Planning scalable environments isn't terribly difficult, but it does require a change of perspective. In his session at 15th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will broaden your views to think on an Internet scale by dissecting a video publishing application built with The SoftLayer Platform, Message Queuing, Object Storage, and Drupal. By examining a scalable modular application build that can handle unpredictable traffic, attendees will able to grow your development arsenal and pick up a few strategies to apply to your own projects.
Come learn about what you need to consider when moving your data to the cloud. In her session at 15th Cloud Expo, Skyla Loomis, a Program Director of Cloudant Development at Cloudant, will discuss the security, performance, and operational implications of keeping your data on premise, moving it to the cloud, or taking a hybrid approach. She will use real customer examples to illustrate the tradeoffs, key decision points, and how to be successful with a cloud or hybrid cloud solution.
The cloud provides an easy onramp to building and deploying Big Data solutions. Transitioning from initial deployment to large-scale, highly performant operations may not be as easy. In his session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, will discuss the benefits, weaknesses, and performance characteristics of public and bare metal cloud deployments that can help you make the right decisions.
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e., the largest single medical system in the United States.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In his session at 15th Cloud Expo, Derek Tumulak, Vice President of Product Management at Vormetric, will discuss how to address data security in cloud and Big Data environments so that your organization isn’t next week’s data breach headline.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Is your organization struggling to deal with skyrocketing volumes of digital assets? The amount of data is growing exponentially and organizations are having a hard time managing this growth. In his session at 15th Cloud Expo, Amar Kapadia, Senior Director of Open Cloud Strategy at Seagate, will walk through the essential considerations when developing a cloud storage strategy. In this discussion, you will understand the challenges IT is facing, why companies need to move to cloud, and how the right cloud model can help your business economically overcome the data struggle.
If cloud computing benefits are so clear, why have so few enterprises migrated their mission-critical apps? The answer is often inertia and FUD. No one ever got fired for not moving to the cloud – not yet. In his session at 15th Cloud Expo, Michael Hoch, SVP, Cloud Advisory Service at Virtustream, will discuss the six key steps to justify and execute your MCA cloud migration.
The 16th International Cloud Expo announces that its Call for Papers is now open. 16th International Cloud Expo, to be held June 9–11, 2015, at the Javits Center in New York City brings together Cloud Computing, APM, APIs, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful device is smaller than a one dollar coin, and frees up otherwise dead space on your motherboard. To meet the requirements of tomorrow’s cloud hardware, Innodisk invested internal R&D resources to develop our SATA III series of products. The SATA III SATADOM boasts 500/180MBs R/W Speeds respectively, or double R/W Speed of SATA II products.
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, will discuss how a user-centric Application Performance Management solution can help inspire your users with every application transaction.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to build reliable, affordable and scalable hybrid cloud storage solutions. Cloudian actively partners with leading cloud computing environments including Amazon Web Services, Citrix Cloud Platform, Apache CloudStack, OpenStack and the vast ecosystem of S3 compatible tools and applications. Cloudian's customers include Vodafone, Nextel, NTT, Nifty, and LunaCloud. The company has additional offices in China and Japan.
SYS-CON Events announced today that TechXtend (formerly Programmer’s Paradise), a leading value-added provider of server and storage virtualization, and r-evolution will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TechXtend (formerly Programmer’s Paradise) is a leading value-added provider of software, systems and solutions for corporations, government organizations, and academic institutions across the United States and Canada. TechXtend is the Exclusive Reseller in the United States for r-evolution