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WebTech Wireless Announces Record Quarter and a Return to Profitability with 67% Growth in Revenue


VANCOUVER, BRITISH COLUMBIA – December 11th, 2008 – WebTech Wireless Inc. (TSX:WEW), a leading provider of location-based and fleet telematics services, today reported revenue of $7.8 million for the quarter ended October 31, 2008, representing a 67% increase year-over-year. Profit for the quarter was $70,000.

Highlights included:

  • Record revenue of $7.8 million
  • Profit of $70,000 for an Earnings per Share of nil
  • Compared to the preceding fiscal quarter ended July 31:
    - Gross Profit grew by six percentage points to 49%
    - Expenses grew at a nominal rate of 2.4%
    - Working capital improved by $557,000

 

Revenue growth came primarily from the US and was driven by deliveries on a previously announced contract with a large US based courier company and a strengthened US dollar. Profit margins at 49% were comparable with those achieved in the first-quarter of the prior year (Aug-Oct 2007), and the average for the year ended July 31, 2008. Expenses for the quarter at $4.8 million were 46% above the same period of the prior year, but less than 3% above those of the preceding quarter.

As at October 31, 2008, the Company reported total assets of $29.8 million (Q1 2007: $35.5 million) and working capital of $19.7 million (Q1 2007: $24.8 million). The year-on-year decrease in working capital resulted from the buildup of inventory for the aforementioned company deliveries, of which commenced in the quarter, and the Company’s now suspended share buyback program.

Working capital increased by $557,000 from the prior quarter as a result of increased receivables.

“We are obviously very pleased to be reporting a profit for this quarter, and while foreign exchange gains made a significant contribution to our results, we are also beginning to see the results from previously announced sales and from holding the line on expenses,” said Anwar Sukkarie, Chief Executive Officer of WebTech Wireless Inc.  “Our working capital is a key metric and we are particularly pleased to have seen this improve since the end of our last quarter”.

About WebTech Wireless Inc.

WebTech Wireless Inc. (TSX:WEW) is a global Telematics, location-based services provider that develops, manufactures, and delivers turnkey wireless solutions designed to improve productivity and profitability. WebTech Wireless products include wireless hardware and software services running on cellular and satellite networks, and include Automatic Vehicle Location, Mapping, Reporting, Vehicle Diagnostics, Driver Status, In-vehicle Telemetry, Messaging, In-vehicle Navigation, and wireless application and Internet connectivity. WebTech Wireless is currently providing devices and services worldwide in eight languages to over forty-one countries covering five continents. WebTech Wireless' scalable solutions are used by a broad range of small, medium and Fortune 500 companies and by governments. For more information, please visit www.webtechwireless.com.

 # # #

For further information on WebTech Wireless, please contact:

Press / Media Contact:
Eric Wilson / WebTech Wireless
(+1) 778.370.9609,
press@webtechwireless.com

Investor Relations Contact:
R. Joe Dhami
(+1) 877.811.4518 ext. 462,
ir@webtechwireless.com

Trademarks are the property of their owners.
The Toronto Stock Exchange does not accept responsibility
for the adequacy or accuracy of this release.

 

 


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