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WaveRider Communications Inc. NEWS RELEASE
(OTC Bulletin Board: WAVC) *All figures reported in $U.S.
WaveRider Communications Inc. reports Q1 2004 results
TORONTO, April 29, 2004 - WaveRider Communications Inc. (OTC BB: WAVC), the
leader in non-line-of-sight wireless broadband technology and deployments, today
reported revenues consistent with preliminary results announced on April 7,
2004. Revenue for the first quarter of 2004 was (U.S.) $2,306,221, compared to
first quarter FY2003 revenues of $3,178,000.
The loss for the quarter totaled $1,578,550, or $0.011 per share compared to a
loss of $258,493, or $0.002 per share in Q1 2003.
"WaveRider's first quarter revenues were impacted by delays in orders from the
company's major distributors who were focused on increasing inventory turnover
rates, and by the reduction in the average selling prices of our products. While
we continued to secure new customers, we did not experience sufficient increases
in unit sales to offset these price reductions," said Bruce Sinclair, president
and chief executive officer, WaveRider Communications Inc. "In addition,
seasonal slowdowns in broadband deployments and confusion surrounding WiMAX and
other broadband products contributed to an increase in the average sales cycle
with both new and existing customers."
"WaveRider has continuously delivered industry-leading technologies and
significant annual revenue growth," added Sinclair. "We believe that our
newly-launched product development strategy, combined with the evolution of our
sales process to a channel-based model, will continue to drive our growth."
In 2004, WaveRider has achieved the following corporate milestones:
o Launched a new global product and market strategy that will enable WaveRider
to reach new customers in new markets through the evolution of its
non-line-of-sight (NLOS) products and the development of WiMAX CertifiedTM
products. The company's investment in research and development increased by
more than 300% compared to Q1 of 2003.
o Strengthened the Company's financial position through the private placement
of $2.125 million of convertible debentures, which will help to support
WaveRider's revenue growth and new product development activities.
o Introduced new product pricing structure that resulted in cost savings for
service providers while maintaining strong margins for WaveRider and its
channel partners.
o Established a broadband wireless program with ANPI/NewStreets which is now
actively marketing WaveRider products to its membership of more than 300
independent telephone companies across the United States.
o Increased participation in telecommunications industry events and trade
shows and delivery of regional technical workshops have generated new sales
opportunities.
WaveRider's Q1 2004 conference call will be held April 29 at 4:30 p.m.
(eastern). To join the call, dial 416-405-8532 or listen via the Internet at
http://www.vcall.com/CEPage.asp?ID=87992 (requires Windows Media Player).
-more-
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WaveRider Communications Inc.
CONSOLIDATED BALANCE SHEETS
(in U.S. dollars)
March 31, December 31,
2004 2003
(Unaudited) (Audited)
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents ........................................... $ 959,269 $ 1,843,135
Restricted cash ..................................................... 228,780 232,125
Accounts receivable, less allowance for doubtful accounts ........... 1,189,652 1,921,975
Inventories ......................................................... 1,288,852 966,433
Note receivable ..................................................... - 20,698
Prepaid expenses and other assets ................................... 177,978 92,600
------------ ------------
Current assets ........................................ 3,844,531 5,076,966
Property, plant and equipment, net ...................................... 408,868 407,489
------------ ------------
$ 4,253,399 $ 5,484,455
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities ............................ $ 2,243,030 $ 2,329,938
Deferred revenue .................................................... 400,850 440,190
Current portion of obligation under capital lease ................... 2,491 10,458
------------ ------------
Current liabilities ................................... 2,646,371 2,780,586
Convertible debentures .................................................. 439,218 772,920
Obligation under capital lease .......................................... 3,528 4,155
------------ ------------
Total liabilities ..................................... 3,089,117 3,557,661
------------ ------------
Commitments and Contingencies (Note 8)
Shareholders' equity:
Preferred Stock, $0.01 par value per share:
issued and outstanding Nil shares at March 31, 2004 and Nil shares
at December 31, 2003 ............................................. - -
Common Stock, $0.001 par value per share:
issued and outstanding - 146,612,502 shares at March 31, 2004
144,294,087 shares at December 31, 2003 .......................... 146,613 144,294
Additional paid-in capital .......................................... 78,527,334 77,595,518
Other equity ........................................................ 12,642,599 12,754,517
Accumulated other comprehensive loss ................................ (311,415) (305,236)
Accumulated deficit ................................................. (89,840,849) (88,262,299)
------------ ------------
Total shareholders' equity ............................ 1,164,282 1,926,794
------------ ------------
$ 4,253,399 $ 5,484,455
============ ============
3/...
WaveRider Communications Inc.
CONSOLIDATED STATEMENTS OF LOSS, DEFICIT AND COMPREHENSIVE LOSS
(in U.S. dollars)
Quarter ended March 31
2004 2003
------------------------------
(Unaudited) (Unaudited)
------------- -------------
REVENUE
Product revenue ........................ $ 1,896,527 $ 2,873,546
Service revenue ........................ 409,694 304,816
------------- -------------
2,306,221 3,178,362
------------- -------------
COST OF REVENUE
Product revenue ........................ 1,338,105 1,884,484
Service revenue ........................ 144,765 118,803
------------- -------------
1,482,870 2,003,287
------------- -------------
GROSS MARGIN ........................... 823,351 1,175,075
------------- -------------
EXPENSES
Selling, general and administration .... 1,272,630 1,186,569
Research and development ............... 489,044 156,602
Depreciation and amortization .......... 95,230 147,755
Bad debt expense ....................... 1,740 -
------------- -------------
1,858,644 1,490,926
------------- -------------
LOSS FROM OPERATIONS ................... (1,035,293) (315,851)
------------- -------------
NON-OPERATING EXPENSES (INCOME)
Interest expense ....................... 517,058 15,279
Foreign exchange loss (gain) ........... 28,296 (70,823)
Interest income ........................ (2,097) (1,814)
------------- -------------
543,257 (57,358)
------------- -------------
NET LOSS ............................... $ (1,578,550) $ (258,493)
============= =============
BASIC AND DILUTED LOSS PER SHARE ....... $ (0.011) $ (0.002)
============= =============
Weighted Average Number of Common Shares 145,999,289 116,694,303
============= =============
OPENING DEFICIT ........................ $ (88,262,299) $ (83,200,992)
NET LOSS FOR THE PERIOD ................ (1,578,550) (258,493)
------------- -------------
CLOSING DEFICIT ........................ $ (89,840,849) $ (83,459,485)
============= =============
NET LOSS FOR THE PERIOD ................ $ (1,578,550) $ (258,493)
OTHER COMPREHENSIVE INCOME/(LOSS)
Cumulative translation adjustment .. (6,179) (49,235)
------------- -------------
COMPREHENSIVE LOSS ..................... $ (1,584,729) $ (307,728)
============= =============
4/...
"WiMAX-CertifiedTM" is a registered trademark of the WiMAX Forum.
About WaveRider Communications Inc.
WaveRider Communications Inc. (www.waverider.com) is a leader in broadband
wireless deployments and technologies. WaveRider's Last Mile Solution(R)
non-line-of-sight 900 MHz networks enable communications providers to establish
full-saturation coverage networks and generate a rapid return on their
investment. WaveRider is committed to the development of standards-based
wireless technologies that support advanced applications and address the needs
of both the North American and International markets. WaveRider is traded on the
OTC Bulletin Board, under the symbol WAVC.
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Except for the historical statements made herein, this release contains
forward-looking statements that involve risks and uncertainties including the
risks associated with the effect of changing economic conditions, trends in the
development of the Internet as a commercial medium, market acceptance risks,
realizing expected revenue, technological development risks, and seasonality.
Risk factors also include the company's ability to secure additional financing;
the company's ability to commercialize its products; the company's ability to
compete successfully in the future against existing or new competitors; the
company's ability to protect its intellectual property and the assurance that
the rights granted under patents or copyrights that may be issued will provide
sufficient protection to its intellectual property rights; the company's success
in enhancing existing products and developing new products to keep up with the
technological advances in the data communications industry; the continued
availability of the license-exempt spectrum which is based on regulation by U.S.
and foreign governments; the company's ability to avoid significant product
liability exposure; the company's dependence on a limited number of third party
manufacturers; the company's ability to execute its business plan and generate
an overall profit and other risk factors detailed in the Company's filings with
the Securities and Exchange Commission, including the company's annual report on
Form 10-K as amended. Due to these factors, actual results could differ
materially from those expressed in forward-looking statements by the company.
For information, contact:
WaveRider Corporate Communications WaveRider Investor Relations
Carolyn Anderson (416) 502-2978 Marcia Newell (416) 502-3265
canderson@waverider.com investors@waverider.com