WebTech Wireless Provides Corporate Update
Vancouver, British Columbia - WebTech Wireless Inc. (TSX:WEW), a leading provider of vehicle fleet location-based services (LBS) and telematics technology, today provided further details regarding the corporate restructuring announced last week.
* The Company has previously given guidance on revenue for 2009 and 2010 and is now withdrawing that guidance. Guidance for 2009 was revenue of $28 million (all figures in Canadian dollars) excluding any revenue from its recently acquired Grey Island subsidiary. The 2009 revenue is now expected to be between $26 and $27 million including two months of revenue from Grey Island, with the figure being subject to final audit approval.
* The Company would like to clarify that Mr. Anwar Sukkarie has resigned as a member of the board of directors of the Company.
* Charges related to the Company’s recently announced management restructuring will be booked in the fourth fiscal quarter for the year ended December 31, 2009. The charge is currently estimated to be between $1.7 and $2 million and includes both cash and non-cash items related to severance and staff benefits, the abandonment of excess facility space, provisions for bad debts and inventory obsolescence.
* The Company is reporting that its cash balances at December 31, 2009 were above $7 million and that it had working capital on hand of more than $20 million, which compares to working capital at September 30, 2009 of approximately $18 million.
Scott Edmonds, President and CEO of WebTech Wireless, said, “Although we are withdrawing previous revenue guidance for 2009 and 2010, I would like to reiterate our stated objective of achieving profitability for the year 2010. Owen and I will be working with Neil Chan, WebTech Wireless’ VP of Sales and Marketing, to review the 2010 sales plan, and we’ll provide comprehensive updates to enable the market to measure our success as the year progresses. We are also reporting on our cash and working balances to provide clarity and confirm our belief that we have sufficient resources to meet our operating needs. Finally, we would like to acknowledge Anwar’s contributions as a board member and thank him for his service in this role.”
Owen Moore, WebTech Wireless’ COO, added, “The charges we are reporting for Q4 2009 are a mix of cash and non-cash items, and will allow us to report results in 2010 that will give investors a clear picture of how our revenues and expenses support our business plan. We continue to see many opportunities ahead, as well as a substantial and growing stream of recurring revenue, which we are estimating at approximately $5 million for the final quarter of 2009. I am confident that we are well positioned to produce positive results as we progress through the year.”
About WebTech Wireless
WebTech Wireless Inc. (TSX:WEW) is a provider of vehicle fleet location-based services (LBS) and telematics technology. It develops, manufactures and supports end-to-end wireless solutions that improve the productivity, profitability, environmental compliance and safety of vehicle fleets. Its comprehensive suite of products and services include: Automatic Vehicle Location (AVL), mapping, vehicle diagnostics, CO2 reporting, navigation, messaging, and workforce management. The Company serves customers of all sizes in the transport, government, service delivery, insurance and OEM markets in over forty-one countries, including Fortune 500 companies. Specialized products include: Quadrant™ fleet management software, InterFleet® solutions for government, and NextBus® real-time passenger information services for public transit fleets.
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