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Wi2Wi Corporation Reports Second Quarter ResultsTORONTO --(Business Wire)-- Wi2Wi Corporation ("Wi2Wi" or the "Company") is pleased to announce its unaudited condensed consolidated interim financial results for the three and six month periods ending June 30, 2014.
Wi2Wi designs, manufactures and markets miniaturized embedded wireless connectivity solutions (incorporating both hardware and software) for premium industrial/medical, smart-home/smart building and government markets worldwide. These products and value added services provide highly integrated, multifunctional wireless sub systems for mobile applications of all forms for mobile devices.
Revenue Revenue for the six month ended June 30, 2014 and 2013 were $2,638 and $2,577, respectively. Revenues increased by 2.3% for the six month period ended June 30, 2014, compared to the same period in 2013. The company has resumed product builds and shipments in the second quarter of 2014. The Company had shippable backlog of approximately $2.9 million for the second quarter of 2014 a significant demand for its product. The Company relies on its distribution network to sell its products, supported by the Wi2Wi Sales Managers and the sales representative network that has been established in North America, European Union and in Asia.
Gross Profit Gross profits for the second quarter ended June 30, 2014 and 2013 were $746 (gross margin 51%) and $551 (gross margin-41.6%), respectively, an increase in gross profit of 34%. Gross margins for the second quarter continue to improve. Gross profits for the six month period ended June 30, 2014 and 2013 were $1,332 (gross margin 50.4%) and $1,045 (gross margin-40.55%), respectively, an increase in gross profit of 27%. The increase in margin is due to the continued efforts on manufacturing yield improvements, Optimising manufacturing batch sizes, successful efforts in manufacturing cost reductions and retaining the ASP of the products "In the second quarter, the Company went through a restructuring of its operation and reduced its overheads, the full impact of which will be evident in the last six months of 2014," stated Zach Mathews, Chief Operating Officer of the Company. "With the licensing of one the products to our customer announced earlier this month, the Company has additional working capital available for operations, and research and development program. The Company will be introducing 1 to 2 new products in late fourth quarter of 2014 and 4 to 5 new products in 2015." Wi2Wi also announces that it has entered into an agreement to issue shares to settle an amount of CDN$79,950 owed to Red Cloud Mining Capital Inc. Wi2Wi will be issuing 444,171 common shares at a deemed price of CDN$0.18/share in settlement of the above-noted amount. The issuance of these common shares is subject to TSXV approval.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to, among other things, the Proposed Transaction. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. Completion of the Proposed Transaction described herein is dependent on a number of factors and is subject to a number of risks and uncertainties, and it is not certain that the Proposed Transaction will be completed. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company's or Wi2Wi's business, general business, economic and competitive uncertainties and delay or failure to receive board, shareholder or regulatory approvals. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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