WebTech Wireless Reports $334,000 of Profit on $4,064,000 Revenue
Burnaby, BC - March 16, 2006 - WebTech Wireless Inc. (TSX-V: WEW), a leading supplier of mobile telematics, today reported record revenue of $4.1 million for the second quarter ended January 31, 2006, an increase of 46% over revenue of $2.8 million for the prior comparable quarter. For the six months ended January 31, 2006, the Company realized revenue of $6.6 million, representing growth of 60% over revenues of the prior comparable six month period of $4.32 million.
Revenue growth for the quarter was primarily due to the Company’s expansion into the consumer automotive market in Brazil, and also due to the continued expansion of its distribution channels in existing markets.
Net income for the quarter was $334, 000 ($0.01 per common share) compared with $329,000 ($0.01 per common share) for same quarter of the prior year. During the quarter net income included a foreign exchange loss of $167,000 compared with a gain of $23,000 during the prior comparable period. The Company reported a gross profit margin of 50.7% compared with a 48.8% for the prior comparable period.
The Company reported net working capital of $8.4 million at the end of the quarter, up from net working capital of $5.0 million at the end the most recently completed fiscal year. The Company generated cash from operating activities for the quarter of $433,000 compared with $422,000 for the second quarter of last year.
“Revenues for the quarter reflect our entry into two new vertical market segments: long haul trucking and consumer automotive. During the quarter, WebTech delivered strong revenue growth and gross profit, despite pressure on profit margins from high volume pricing for consumer automotive locators and a strengthening Canadian dollar. Also during the quarter, we continued to grow our government fleet business which contributed in part to sales growth in the U.S.” comments Juliet Jones, Chief Financial Officer of WebTech Inc.
As previously announced, the Company will hold a conference call on March 16, 2006 at 2:00 PST (5:00 EST) and a recording of the conference call will be posted on the company’s website at www.webtechwireless.com within 24 hours of the call. Conference call dial-in numbers are 212-231-6012 (international) or 1 (800) 745-2189 (local).
The Company’s Financial Statements for the Three and Six Months Ended January 31, 2006 are appended hereto. In addition, the Company’s Financial Statements and accompanying notes, along with Management Discussion and Analysis, will be posted on the Company’s website at www. webtechwireless.com prior to the conference call.
For further details, please view the Company’s Financial Statements and Management Discussion and Analysis at www.sedar.com.
Forward Looking Statements
This press release contains forward-looking statements involving risks and uncertainties pertaining to, but not limited to product plans, timing, content, and pricing of products, market and industry expectations, the wireless communications industry, the mobile fleet industry, and general economic and political conditions. Given the risks and uncertainties inherent in the markets and industries referred to in this press release, WebTech cannot guarantee that any forward looking statements will not be realized.
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