Exhibit 99.1
[WaveRider Letterhead]
NEWS RELEASE
WaveRider Communications Inc. All values expressed in $U.S.
(OTC BB: WAVR)
WaveRider reports year-end financial results
TORONTO, March 30, 2005 - WaveRider Communications Inc. (OTC BB: WAVR), a
leading global provider of fixed wireless Internet access products, today
reported revenues of (U.S.) $9,541,604 for its fiscal year ended December 31,
2004, a decrease of 27 per cent from FY2003 revenues of $13,078,555.
Net loss for 2004 totaled $6.3 million, or $0.42 per share compared to a loss of
$5.1 million, or $0.39 per share in 2003. The net loss for 2004 included
non-cash financing expenses of $2.5 million, resulting from the conversion of
certain company notes to common stock during 2004.
Factors contributing to the decline in revenues included the following:
o The delay in the commercial introduction and shipments of WaveRider's
EUM3006 integrated outdoor modem and antenna until February, 2005 from
Q4 of 2004 resulted in lower than expected revenues in Q4.
o Purchase patterns of WaveRider's major distributors changed in the
first half of the year from large stocking orders to purchases based
strictly on demand.
o New competition in the 900 MHz market in North America resulted in
significant pricing pressure and a reduction of WaveRider's average
selling prices
o Market confusion surrounding the timing of introduction and
capabilities of WiMAX and other broadband products contributed to an
increase in the average sales cycle for both new and existing
customers.
"While we are disappointed by year on year results, we have taken a number of
steps to revitalize the company and we remain committed to product innovation
and diversification to drive the Company forward," said Bruce Sinclair, Chief
Executive Officer, WaveRider Communications Inc. "During the last few months, we
have seen the successful introduction of the NCL5800 family of products, the
introduction of the EUM3006, our integrated outdoor unit, and have recently
announced our MobileWAN products. We are continuing to build our roster of
telecommunications companies, WISPs, municipalities and other network operators.
We have also added new bench strength to the company with the addition of three
industry-experienced members to our board directors."
We will continue to have to make tough fiscal decisions until we can get the
company to a profitable and cash flow positive position. We will also continue
to explore alternatives to grow the company, our product offerings and markets,
through strategic partnerships, acquisitions, mergers and new financing," added
Sinclair.
-more-
2/... WaveRider Communications Inc. reports 2004 results /
WaveRider Communications Inc.
CONSOLIDATED BALANCE SHEETS
December 31
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $ 1,291,822 $ 1,843,135
Restricted cash 100,000 232,125
Accounts receivable, less allowance for doubtful accounts 1,056,103 1,921,975
Inventories 943,644 966,433
Note receivable - 20,698
Prepaid expenses and other assets 145,805 92,600
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Current assets 3,537,374 5,076,966
Property, plant and equipment, net 295,063 407,489
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$ 3,832,437 $ 5,484,455
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LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 2,080,064 $ 2,329,938
Deferred revenue 407,639 440,190
Current portion of obligations under capital lease 2,781 10,458
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Current liabilities 2,490,484 2,780,586
Convertible debentures, net of discount 1,506,322 772,920
Obligations under capital lease 1,854 4,155
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Total liabilities 3,998,660 3,557,661
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Shareholders' (deficit) equity:
Preferred Stock, $0.01 par value per share:
issued and outstanding Nil shares in 2004 and 2003 - -
Common Stock, $0.001 par value per share:
issued and outstanding - 16,571,732 shares in 2004 and
14,429,409 shares in 2003 16,572 14,429
Additional paid-in capital 89,582,484 77,725,383
Other equity 5,134,928 12,754,517
Accumulated other comprehensive loss (337,239) (305,236)
Accumulated deficit (94,562,968) (88,262,299)
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Total shareholders' (deficit) equity (166,223) 1,926,794
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$ 3,832,437 $ 5,484,455
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3/... WaveRider Communications Inc. reports 2004 results
WaveRider Communications Inc.
CONSOLIDATED STATEMENTS OF LOSS
Years ended December 31
2004 2003
REVENUE
Product revenue $ 7,760,329 $ 11,552,992
Service revenue 1,781,275 1,525,563
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9,541,604 13,078,555
COST OF REVENUE
Product revenue 5,290,182 7,338,875
Service revenue 902,590 560,141
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6,192,772 7,899,016
GROSS MARGIN 3,348,832 5,179,539
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OPERATING EXPENSES
Selling, general and administration 4,975,289 5,366,858
Research and development 1,666,131 996,487
Depreciation and amortization 290,529 510,536
Bad debt (recovery) expense (1,437) 200,137
---------------- --------------
6,930,512 7,074,018
LOSS FROM OPERATIONS 3,581,680 1,894,479
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NON-OPERATING EXPENSES (INCOME)
Write-off of goodwill - 2,755,446
Interest expense 2,584,610 699,821
Foreign exchange loss (gain) 138,627 (273,909)
Interest income (4,248) (14,530)
---------------- --------------
2,718,989 3,166,828
NET LOSS $ (6,300,669) $ (5,061,307)
================ ===============
BASIC AND DILUTED LOSS PER SHARE $ (0.42) (0.39)
================ ===============
Weighted Average Number of Common Shares 15,139,018 13,068,331
=============== ==============
4/... WaveRider Communications Inc. reports 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.
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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-KSB as amended. Due to these factors, actual results could differ
materially from those expressed in forward looking statements by the company.
WaveRider Corporate Communications:
416.502.3438 (corpcomm@waverider.com)
www.waverider.com