High Wire Networks Releases Third Quarter 2021 Results

Rhea-AI Summary

High Wire Networks (SGSI) reported third quarter 2021 revenue of $11.37 million, a 35% increase from $8.40 million in Q3 2020. Year-to-date revenue rose 16% to $31.33 million. The company is optimistic about 30%-60% growth in 2022, driven by new contracts and expansions. However, supply chain issues have delayed revenue recognition. The operating loss was $1.13 million and the net loss stood at $9.31 million, though cash and restricted cash increased to $2.26 million compared to $436,448 at the end of 2020.

Positive

• Third quarter 2021 revenue increased 35% year-over-year.
• Pro forma year-to-date revenue rose 16% compared to 2020.
• Company expects 30%-60% growth in 2022.
• Backlog grew significantly, indicating future revenue potential.

Negative

• Operating loss of $1.13 million reported for Q3 2021.
• Net loss of $9.31 million, indicating ongoing financial struggles.
• Supply chain disruptions leading to delays in revenue recognition.

Thirty-five Percent Pro Forma Revenue Growth Year-Over-Year

BATAVIA, Ill., Nov. 15, 2021 (GLOBE NEWSWIRE) -- High Wire Networks Inc. (the “Company” or "High Wire") (OTCQB: SGSI) reported earnings for the period ended September 30 and provides management discussion and analysis. Highlights of the third quarter earnings report are as follows:

• Third quarter 2021 revenue of $11.37 million compared to same period pro forma 2020 of $8.40 million, a 35% increase
• Year-to-date 2021 pro forma revenue of $31.33 million compared to same period 2020 pro forma revenue of $27.09 Million, a 16% increase
• Completed the consolidation of the sales organization and added personnel to increase sales momentum
• The Company won expansions of existing and new programs, mostly impacting fourth quarter and 2022
• Backlog grew substantially, although supply chain issues created longer than usual time to recognize revenue
  
  

Outlook:

• Well-positioned for 30% to 60% growth in 2022 from the current Pro Forma run rate
• Contract wins and expansions bodes well for future quarters
• Positioned for growth and significant profitability despite existing headwinds
• Company-wide systems consolidation is expected to provide more concrete 2022 guidance

Summary:

“We are extremely pleased with the year-over-year growth on a pro forma basis, which gives us the best basis for comparison of the combined businesses,” said High Wire CEO Mark Porter. “We completed the consolidation of our sales organization and added personnel to increase our sales momentum. High Wire secured expansions of existing and new programs, which will impact the fourth quarter 2021 in to 2022. Our Overwatch Cybersecurity monthly recurring revenue ( MRR ) nearly doubled, our sales momentum and new partner acquisitions accelerated. Our backlog grew substantially, although certain supply chain issues have created a longer than usual time to recognize revenue “, Mark Porter continued.

“Like everyone in our sector and beyond, we saw a tremendous impact from supply chain disruptions and delays in our professional services businesses. We have been advised to expect continued delays into 2022 by most of the major product manufacturers from networking hardware to cable suppliers. However, we see the pace of play normalizing and accelerating in the first quarter of 2022 as access restrictions from Covid-19 ease and supply makes its way through the chain, helping programs progress.

Third Quarter 2021 Financial Results:

		Actual Q-3 2021				Pro Forma Q-3 2020
Revenue		$	11,368,033			$	8,408,369
Operating loss		$	(1,134,363	)		$	(1,129,894	)
Net (loss)		$	(9,312,829	)		$	(17,368,636	)
		Actual				Actual
Balance Sheet Data		30-Sep-21				31-Dec-20
Cash and restricted cash		$	2,264,689			$	436,448
Total current assets			10,840,167				3,185,127
Total assets			37,555,242				8,978,444
Total liabilities			33,294,663				5,195,894
Total equity and mezzanine equity		$	4,260,579			$	3,782,550

About High Wire Networks
For 20 years, High Wire Networks Inc. (OTCQB: SGSI) has been a trusted partner to VARs, MSPs, distributors, integrators, manufacturers and telecom providers by enabling them to minimize overhead while extending delivery capabilities around the world. Our flexible workforce delivers vendor-agnostic technical field, professional and security services in more than 180 countries. Our services include design, installation, configuration and support for unified communications, wired and wireless networks, cabling and infrastructure, and electrical systems. Our Overwatch Managed Security Marketplace enables our partners to deliver comprehensive cybersecurity that's easy to sell and easy to buy for an affordable subscription. We also offer a variety of on-demand, rapid-response solutions with service levels ranging from two hours to the next business day for onsite break-fix and remote technical support. With High Wire Networks, partners Get Work Done. Learn more at www.highwirenetworks.com.

Forward-Looking Statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations. 

Investor Relations

www.highwirenetworks.com/investors
investors@highwirenetworks.com

Media Relations

Susanna Song
Vice President of Communications
susanna.song@highwirenetworks.com

FAQ

What were High Wire Networks' Q3 2021 revenue figures?

High Wire Networks reported Q3 2021 revenue of $11.37 million, a 35% increase from the same period in 2020.

What is High Wire Networks' expected growth for 2022?

The company is well-positioned for growth between 30% to 60% in 2022.

What was the operating loss for High Wire Networks in Q3 2021?

The operating loss for Q3 2021 was $1.13 million.

What challenges is High Wire Networks facing currently?

High Wire Networks is facing supply chain disruptions that have delayed revenue recognition.

How does High Wire Networks' cash position compare to the previous year?

As of September 30, 2021, cash and restricted cash increased to $2.26 million from $436,448 at the end of 2020.