Exhibit 99.1
WaveRider Communications Inc. NEWS RELEASE
(OTC Bulletin Board: WAVR) *All figures reported in $U.S.
WaveRider Communications Inc. reports continued quarterly revenue growth
-- Focus on large telecommunications carriers and channel sales program
results in sequential quarterly revenue growth of 11% --
TORONTO, November 8, 2004 - WaveRider Communications Inc. (OTC BB: WAVR), the
leader in non-line-of-sight wireless broadband technology and deployments, today
reported revenue for the third quarter of 2004 of (U.S.), $2,669,219 compared to
second quarter revenues of $2,412,516 and Q3 2003 revenues of $3,534,064.
The net loss for the quarter totaled $1,937,855 or $0.13 per share compared to a
net loss of $2,586,187 or $0.18 per share in the previous quarter, and a Q3 2003
loss of $961,589, or $0.07per share. The increase in the net loss in Q3 2004
over Q3 2003 was mainly due to non-cash financing expenses, which amounted to
$1,206,997 in Q3 2004 versus $385,226 in Q3 2003.
"We believe that our focus on selling to larger telecommunications carriers,
coupled with our channel sales program, has been the driver for our quarter on
quarter growth and that this focus should enable the company to continue to
improve revenue levels for the remainder of 2004 and into 2005", said Charles
Brown, Executive Vice President, WaveRider Communications Inc. "WaveRider is
working closely with our channel partners to manage inventory levels to reflect
end user demand, which we believe has eliminated the large stocking orders that
we experienced last year. At the same time, we have announced new products and
new product initiatives that we expect will help our channel partners to
increase sales of WaveRider products," added Mr. Brown.
"WaveRider's plans include the delivery of industry-leading technologies that
will benefit our existing customers, attract new customers, expand our market
opportunity and enhance shareholder value. At the same time, we have taken the
steps that we believe are necessary to drive to our goal of delivering an
operating profit and cash flow positive operations. With actions taken, the loss
from operations and the cash used in operations has declined significantly in Q3
from Q2," said Bruce Sinclair, Chief Executive Officer, WaveRider Communications
Inc.
WaveRider's Q3 2004 conference call will be held November 8 at 4:30 p.m.
(eastern). The conference call can be accessed at
http://events.onlinebroadcasting.com/waverider/110804/index.php or via the
WaveRider website, www.waverider.com. Both links will enable investors to access
the event as an archive after it is completed. Windows Media player is required.
Alternatively, interested parties can join the conference call by dialing
416-405-9328. A telephone replay of the call will be available for seven days
after the conference call by dialing 416-695-5800, pass code: 3112614.
-more-
2/... WaveRider Communications Inc. reports Q3 2004 results
WaveRider Communications Inc.
CONSOLIDATED BALANCE SHEETS
(in U.S. dollars)
September 30, December 31,
2004 2003
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,051,290 $ 1,843,135
Restricted cash - 232,125
Accounts receivable, less allowance for doubtful accounts 1,408,484 1,921,975
Inventories 1,040,371 966,433
Note receivable - 20,698
Prepaid expenses and other assets 131,570 92,600
-------------------------------
Current assets 3,631,715 5,076,966
Property, plant and equipment, net 332,548 407,489
-------------------------------
$ 3,964,263 $ 5,484,455
===============================
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued liabilities $ 2,142,544 $ 2,329,938
Deferred revenue 370,454 440,190
Current portion of obligation under capital lease 1,233 10,458
-------------------------------
Current liabilities 2,514,231 2,780,586
Convertible debentures 1,463,863 772,920
Obligation under capital lease 3,528 4,155
-------------------------------
Total liabilities 3,981,622 3,557,661
-------------------------------
Commitments and Contingencies (Note 10)
Shareholders' equity (deficit):
Preferred Stock, $0.01 par value per share:
issued and outstanding Nil shares at September 30, 2004 and
December 31, 2003 - -
Common Stock, $0.001 par value per share:
issued and outstanding - 15,691,488 shares at September 30, 2004
14,429,409 shares at December 31, 2003 15,691 14,429
Additional paid-in capital 88,730,869 77,725,383
Other equity 5,876,941 12,754,517
Accumulated other comprehensive loss (275,969) (305,236)
Accumulated deficit (94,364,891) (88,262,299)
-------------------------------
Total shareholders' equity (deficit) (17,359) 1,926,794
-------------------------------
$ 3,964,263 $ 5,484,455
===============================
3/... WaveRider Communications Inc. reports Q3 2004 results
WaveRider Communications Inc.
CONSOLIDATED STATEMENTS OF LOSS, DEFICIT AND COMPREHENSIVE LOSS
(in U.S. dollars)
Three Months ended Nine Months ended
September 30 September 30 September 30 September 30
2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------------------------------------------------------
CONSOLIDATED STATEMENT OF LOSS
REVENUE
Product revenue $ 2,271,435 $ 3,169,644 $ 5,925,002 $ 8,729,256
Service revenue 397,784 364,420 1,462,954 1,119,323
-------------- ------------ -------------- ------------
2,669,219 3,534,064 7,387,956 9,848,579
-------------- ------------ -------------- ------------
COST OF REVENUE
Product revenue 1,471,573 2,041,844 4,119,366 5,598,285
Service revenue 172,830 170,002 774,586 388,306
-------------- ------------ -------------- ------------
1,644,403 2,211,846 4,893,952 5,986,591
-------------- ------------ -------------- -----------
GROSS MARGIN 1,024,816 1,322,218 2,494,004 3,861,988
-------------- ------------ -------------- ------------
EXPENSES
Selling, general and administration 1,121,693 1,326,894 3,871,484 3,663,153
Research and development 521,436 450,870 1,376,230 883,465
Depreciation and amortization 53,364 119,173 242,087 384,573
Bad debt expense 18,975 1,256 35,715 1,256
-------------- ------------ -------------- ------------
1,715,468 1,898,193 5,525,516 4,932,447
-------------- ------------ -------------- ------------
LOSS FROM OPERATIONS (690,652) (575,975) (3,031,512) (1,070,459)
-------------- ------------ -------------- ------------
NON-OPERATING EXPENSES (INCOME)
Interest expense 1,215,270 403,721 2,891,669 441,374
Foreign exchange loss (gain) 32,345 (12,155) 182,442 (163,352)
Interest income (412) (5,952) (3,031) (9,627)
-------------- ------------ -------------- ------------
1,247,203 385,614 3,071,080 268,395
-------------- ------------ -------------- ------------
NET LOSS $ (1,937,855) $ (961,589) $ (6,102,592) $ (1,338,854)
============== ============ ============= ============
BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.13) $ (0.07) $ (0.41) $ (0.11)
============== ============ ============== ============
Weighted Average Number of Common Shares 15,165,678 13,881,367 14,837,243 12,698,474
============== ============ ============== ============
- ----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF DEFICIT
OPENING DEFICIT (92,427,036) (83,578,257) (88,262,299) (83,200,992)
NET LOSS FOR THE PERIOD (1,937,855) (961,589) (6,102,592) (1,338,854)
-------------- ------------ -------------- ------------
CLOSING DEFICIT $ (94,364,891) $(84,539,846) $ (94,364,891) $(84,539,846)
============== ============ ============== ============
- ----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
NET LOSS FOR THE PERIOD (1,937,855) (961,589) (6,102,592) (1,338,854)
OTHER COMPREHENSIVE INCOME/(LOSS)
Cumulative translation adjustment (34,182) (17,304) 29,267 (158,458)
--------------- ------------ -------------- ------------
COMPREHENSIVE LOSS $ (1,972,037) $ (978,893) $ (6,073,325) $ (1,497,312)
============= ============ ============== ============
4/... WaveRider Communications Inc. reports Q3 2004 results
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 WAVR.
-30-
- --------------------------------------------------------------------------------
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 Communications Inc.
Marcia Newell (416) 502-3265
investors@waverider.com