Siyata Mobile Announces Fourth Quarter and Year-End 2020 and First Quarter 2021 Financial Results and Conference Call

Rhea-AI Summary

Siyata Mobile Inc. (SYTA, SYTAW) reported a 39% decline in revenue to $6.0 million for 2020, driven by significant drops in Israel and EMEA, despite a $800,000 increase in North America. The net loss widened to $13.6 million compared to the previous year's loss of $7.7 million. For Q1 2021, revenue surged by 77% year-over-year to $4.0 million, with a gross margin increase to 43.2% from 25.2%. Adjusted EBITDA loss narrowed to $291,000. Siyata closed Q1 with $9.7 million in cash, emphasizing a rebound in demand and growth potential.

Positive

• Q1 2021 revenue increased 77% year-over-year to $4.0 million.
• Gross margin improved to 43.2% in Q1 2021 from 25.2% in Q1 2020.
• Adjusted EBITDA loss decreased to $291,000 in Q1 2021 from $460,000 the previous year.
• Siyata closed Q1 with $9.7 million cash and $11.5 million in working capital.

Negative

• 2020 revenue fell 39% to $6.0 million from $9.8 million in 2019.
• Net loss increased to $13.6 million in 2020, up from $7.7 million.
• Adjusted EBITDA worsened to ($7.1 million) from ($4.2 million) in 2019.
• Net loss in Q1 2021 was $2.1 million, wider than $1.2 million in Q1 2020.

VANCOUVER, British Columbia, June 30, 2021 (GLOBE NEWSWIRE) -- Siyata Mobile Inc. (NASDAQ: SYTA, SYTAW) (“Siyata” or the “Company”), a global vendor of Push-to-Talk over Cellular (PoC) devices and cellular booster systems, announced its financial results for the three and twelve months ended December 31, 2020 and for the three months ended March 31, 2021. All amounts are in US dollars unless otherwise indicated.

Key financial highlights for the twelve months ended December 31, 2020 include the following:

• Revenue was $6.0 million compared to $9.8 million for the same period the previous year. This negative variance of $3.8 million (-39%) is due mainly to a $4.7 million year-over-year decrease in sales in Israel and EMEA offset by an $800,000 increase in North American revenue.
• Gross margin for the year ended December 31, 2020, was 26.4% compared to 27.4% last year.
• Net loss was $13.6 million compared to a net loss of $7.7 million for the same period the previous year, a negative variance of $5.9 million.
• Adjusted EBITDA was ($7.1) million versus ($4.2) million for the same period in the previous year, a negative variance of $2.9 million.

Key financial highlights for the three months ended March 31, 2021 include the following:
For the first quarter of 2021, Siyata experienced a robust return in broad based demand, punctuated by record sales, record organic growth, record margins, and smaller adjusted EBITDA loss.

• Revenue increased 77% year-over-year to $4.0 million from $2.3 million in the same period in 2020.
• Gross margin percentage increased to 43.2% from 25.2% in the first quarter of 2020.
• Adjusted EBITDA improved to ($291,000) from ($460,000) in the prior-year period.
• Net loss was $2.1 million compared to a net loss of $1.2 million for the same period the previous year, a negative variance of $0.9 million.
• We closed the quarter with $9.7 million in cash and $11.5 million in working capital.
  

Recent Corporate Highlights:

• In December 2020, Siyata closed a $13 million private placement led by Phoenix Insurance Fund with 129,450 units at a price of $100 per unit.
• Siyata received a $550,000 purchase order for the UV350 in-vehicle IoT device from a cellular carrier in the Gulf of Mexico region to supply first responders.
• Siyata received a $1.4 million purchase order to equip first responders with rugged handsets devices.
• Siyata received its largest purchase order to equip police vehicles with the UV350.
• Siyata closed the strategic acquisition of ClearRF, LLC for $700,000 with a combination of cash and shares. Headquartered in Spokane, WA, ClearRF produces M2M (machine-to-machine) cellular amplifiers for commercial and industrial applications.
• Siyata appointed Peter Goldstein as Chairman of its Board of Directors and added seasoned public company executive Luisa Ingargiola to the Board of Directors.

Outlook
We believe that Siyata Mobile is better positioned today than it has ever been to be able to monetize the aforementioned trends driving our industry. While COVID had a negative impact on our business in 2020, many of our end markets are now rebounding due to pent-up demand coupled with a long term fundamental shift to next generation cellular solutions for enterprise customers and first responders. We have the right sales team, the right product portfolio, and the right customer relationships in place in North America and internationally to drive sales throughout the balance of 2021, and we are very excited about how we will grow our sales in the coming quarters with a clear focus on reaching profitability in the coming quarters.

Investor Conference Call
Siyata will host a conference call on July 1, 2021 at 8:30 a.m. (ET) to discuss its financial results for the three and twelve months ended December 31, 2020 and for the three months ended March 31, 2021. The call will be hosted by Marc Seelenfreund, Chief Executive Officer, Gerald Bernstein, Chief Financial Officer, Daniel Kim, Vice President of Corporate Development and Glenn Kennedy, VP of International Sales. All interested parties are invited to participate using the dial-in details provided below.

Date and Time: July 1, 2021 at 8:30 a.m. (ET)
Pre-Registration: https://dpregister.com/sreg/10157772/e9dcc04764
Dial-in Number: 1-866-777-2509 or 1-412-317-5413
Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=DVikp2gW

About Siyata

Siyata Mobile Inc. is a Business-to-Business (B2B) global vendor of next generation Push-To-Talk over Cellular (PoC) devices and cellular booster systems. Its portfolio of in-vehicle and rugged smartphones enable first responders and enterprise workers to instantly communicate, over a nationwide cellular network of choice, to improve communication, increase situational awareness and save lives.

Its portfolio of enterprise cellular booster systems enables first responders and enterprise workers to amplify its cellular signal in remote areas, inside structural buildings where signals are weak and within vehicles for maximum cellular signal strength possible.

Siyata’s common shares trade on the Nasdaq under the symbol “SYTA” and its warrants under “SYTAW”.

Visit siyatamobile.com and unidencellular.com/ to learn more.

On Behalf of the Board of Directors of:
SIYATA MOBILE INC.
Marc Seelenfreund
CEO

Investor Relations (Canada):
Kin Communications
1-866-684-6730
SYTA@kincommunications.com

Investor Relations (United States)
CORE IR
516-222-2560
SYTA@coreir.com

Sales:
Glenn Kennedy, VP Sales
Siyata Mobile Inc.
416-892-1823
glenn@siyata.net

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Siyata is using forward-looking statements in this press release when it discusses that it expects to file the annual report as soon as practically possible and that it does not expect the Notice to impact the trading of its securities on Nasdaq. Because such statements deal with future events and are based on Siyata’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Siyata could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Siyata’s filings with the Securities and Exchange Commission (“SEC”), and in any subsequent filings with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. 

FAQ

What were Siyata's financial results for Q1 2021?

Siyata reported a 77% increase in revenue to $4.0 million, gross margin improved to 43.2%, and adjusted EBITDA loss narrowed to $291,000.

What is Siyata Mobile's revenue decline for 2020?

Siyata's revenue decreased by 39%, from $9.8 million in 2019 to $6.0 million in 2020.

When will Siyata hold its investor conference call?

Siyata will host a conference call on July 1, 2021, at 8:30 a.m. (ET) to discuss its financial results.

What is the outlook for Siyata in 2021?

Siyata is optimistic about growth potential due to rebounding demand and a strong sales team, aiming for profitability.