Edgewater Wireless Announces Fiscal Q2 2022 Financial Results

Rhea-AI Summary

Edgewater Wireless Systems Inc. (OTC: KPIFF) has announced its financial results for Q2 2022, ending October 31, 2021. The company reported a revenue of $4,100 from Wi-Fi Spectrum Slicing solutions, marking significant growth from $0 in Q2 2021. Gross margin stood at 87.8%, and net loss increased to $280,738 compared to $188,620 in the previous year due to intensified pilot testing and silicon production activities. The company is pivoting towards commercialization and expanding partnerships to enhance its market presence.

Positive

• Revenue increased to $4,100 in Q2 2022 from $0 in Q2 2021.
• Gross margin of 87.8% indicates strong profitability on sales.
• Completion of successful pilot testing demonstrated 50% improvement in latency and 6-12 times throughput gains.

Negative

• Net loss for Q2 2022 was $280,738, higher than the $188,620 loss in Q2 2021 due to rising operational costs.

OTTAWA, Ontario--(BUSINESS WIRE)-- Edgewater Wireless Systems Inc. (TSX.V: YFI) (OTC: KPIFF), the industry leader in Wi-Fi Spectrum Slicing technology for residential and enterprise markets, is pleased to announce its financial results for the Second Quarter Ending October 31, 2021, which are available on SEDAR (www.sedar.com). The Company fiscal year-end is April 30.

“Edgewater continues to move forward. Having established the market need for Spectrum Slicing in the home with our PoC completed in March 2021, we unequivocally demonstrated the powerful capabilities of our silicon solutions in the recently completed Pilot with a major Tier 1 Service Provider. Independent real-world testing showed an impressive 50% improvement in latency and 6-12 times throughput gains from our beta silicon. We’re now transitioning our strategic efforts to commercialization, manufacturing and scaling partnership opportunities,” said Andrew Skafel, President and CEO of Edgewater Wireless. “We announced our first silicon partnership in the quarter with CMC Microsystems and anticipate adding several more to strengthen our position to capture the volume market for Spectrum Slicing. We feel very confident in how we have positioned the Company for a strong calendar 2022 and beyond.”

Highlights for the Fiscal Second Quarter Ended October 31, 2021:

• A significant pre-payment to a global silicon supplier to secure design optimization and production of the next generation of silicon solutions was made in the reporting period.
• Revenue in Q2 2022 was $4,100, compared to $nil in Q2 2021, from sales of Wi-Fi Spectrum Slicing development kit and lab system purchases.
• Gross margin in the reporting period was $3,600, or 87.8%, compared with $nil in Q2 2021.
• Net loss for Q2 2022 was $280,738, compared to a net loss of $188,620 for Q2 2021 as activities to complete Pilot testing and silicon design / production increased in the period.

Outside the reporting period:

• November 30, 2021: EdgewaterWireless: Wi-Fi Spectrum Slicing once again demonstrates superiority. Major Tier 1 Service Provider carried out extensive tests through an independent organization that validated and further demonstrated the powerful capabilities of Edgewater’s silicon solutions.
  • Results demonstrate an impressive 50% improvement in latency
  • 6-12 times throughput gains for Residential Service Provider use cases in earlier Proof of Concept
  • An independent test house conducted all tests under rigorous real-world scenarios
    READ FULL NEWS RELEASE
• December 6, 2021: Edgewater Wireless Presented at the SNN Network Canada Virtual Event. Replays of the CEO presentation are available at the link below:
  LINK TO SNN REPLAY

The Company Reiterates its Strategic Focus on the Following Growth Initiatives:

1. New Silicon Partnerships and Alliances: Edgewater management continues to focus on building alliances with several potential silicon partners to strengthen its move to capture the volume market for Spectrum Slicing. The ultimate goal is to build an ecosystem of world-class silicon partnerships to continue to move its strategic initiatives forward.
2. Additional Commercial Pilot Projects: Edgewater management continues to focus on expanding its pipeline of new Tier 1 Service Providers to take Edgewater’s Spectrum Slicing product through extensive lab testing. The Company anticipates providing status updates to the market in the coming months on the progress of new Pilot Project engagements.
3. Proof of Concept (PoC) Pipeline Expansion: Management continues to target Tier-1 service providers, expanding its marketing efforts, cultivating new relationships and further developing existing relationships with Service Providers who have displayed a strong and genuine interest in potentially participating in future Proof of Concept Trials.

For further information, please visit SEDAR.ca

About Edgewater Wireless
We make Wi-Fi. Better.
Edgewater Wireless (www.edgewaterwireless.com) is the industry leader in innovative Spectrum Slicing technology for residential and commercial markets. We develop advanced Wi-Fi silicon solutions, Access Points, and IP licensing designed to meet the high-density and high quality-of-service needs of service providers and their customers. With 24+ patents, Edgewater’s Multi-Channel, Single Radio (MCSR) technology revolutionizes Wi-Fi, delivering next-generation Wi-Fi today.

Edgewater’s physical layer Spectrum Slicing allows a frequency band to be divided, or sliced, to enable more radios to operate in a given area. Think of Spectrum Slicing like moving from a single-lane road to a multi-lane highway — regardless of Wi-Fi technology. The recently completed Proof of Concept (PoC) with a major Tier 1 Service Provider showed 7 to 18 times performance gains in 75% of homes surveyed. Interestingly, homes with the most devices saw the greatest improvements.

For more information, visit www.edgewaterwireless.com or www.aera.io.

Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. Although Edgewater Wireless believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Edgewater Wireless can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause Edgewater Wireless’ actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to access to capital markets, market forces, competition from new and existing companies and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. Edgewater Wireless undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211221005789/en/

Edgewater Wireless:

Andrew Skafel, President and CEO

E: andrews@edgewaterwireless.com

Bill Mitoulas, Investor Relations

E: ir@edgewaterwireless.com

T: +1.416.479.9547

www.edgewaterwireless.com

Source: Edgewater Wireless Systems Inc.

FAQ

What were Edgewater Wireless's revenue and loss in Q2 2022?

In Q2 2022, Edgewater Wireless reported revenue of $4,100 and a net loss of $280,738.

What is the significance of Edgewater's Spectrum Slicing technology?

Edgewater's Spectrum Slicing technology has shown a 50% improvement in latency and up to 12 times throughput gains, enhancing Wi-Fi performance.

How did Edgewater Wireless perform in Q2 2021 compared to Q2 2022?

Edgewater Wireless showed substantial revenue growth in Q2 2022 with $4,100 compared to $0 in Q2 2021, though they recorded a higher net loss.

What are Edgewater Wireless's future plans?

The company plans to expand its silicon partnerships and pilot projects to strengthen its market position.