Exhibit 99.1
[WaveRider Letterhead]
NEWS RELEASE
WaveRider Communications Inc. All values expressed in $U.S.
(OTC BB: WAVR)
WaveRider Communications Inc. reports Q3 2005 results
-- Continued growth pushes quarterly revenue over $3 million --
TORONTO, November 3, 2005 - WaveRider Communications Inc. (OTC BB: WAVR), a
leading global provider of fixed wireless Internet access products, today
reported revenues of (U.S.) $3,009,494 for its fiscal quarter ended September
30, 2005, compared to revenues of $2,780,581 for second quarter of 2005 and
$2,669,219 for the third quarter of 2004. Revenues for the nine months ended
September 30, 2005 were $7,929,638, compared to revenues of $7,387,956 for the
nine months ended September 30, 2004.
Net loss for the three months ended September 30, 2005 totaled $263,828 or $0.01
per share compared to a loss of $827,455, or $0.03 per share for the three
months ended June 30, 2005 and $1,989,602, or $0.13 per share, for the three
months ended September 30, 2004. The net losses for the three months ended
September 30, 2005, June 30, 2005 and September 30, 2004 included non-cash
financing expenses, resulting from the conversion of debentures to common stock,
in the amount of $149,951, $464,762 and $1,258,744, respectively.
"The third quarter of 2005 saw the Company achieve continued quarterly and
annual revenue growth. This growth was principally focused in North America,
with revenues increasing by 13.5% sequentially and 17.4% compared to the third
quarter of 2004." said Charles Brown, Chief Executive Officer, WaveRider
Communications Inc. "With the increased revenues and continued tight cost
controls, the Company saw both the quarterly operating loss and the cash used
during the quarter declined to just over $100,000, significant improvements over
prior quarters."
"The third quarter was also highlighted by the first commercial shipments of our
new mobile customer terminal, the MMT9000" added Brown, "With the delivery of
the MMT9000, our product roster now provides our customers with the capability
to establish both fixed and mobile wireless networks via a mix of indoor and
outdoor user self-installed customer premise equipment. Targeting the growing
demand for on location, high speed voice, video and data services by the safety
and security markets, our MobileWAN product family provides broadband services
through a rapidly field deployable, mobile wireless access network."
"The continued growth was especially gratifying in light of the product
availability issues, which resulted in long lead times and significant
backorders. While we made great progress as we moved through the quarter,
product supply continues to be an issue and will likely continue through the
fourth quarter." said Scott Worthington, Chief Financial Officer, WaveRider
Communications Inc.
"Also, as we have discussed in the past, while operating results have shown
strong improvement, we continue to believe that we will need to raise additional
funds in 2005 or early 2006 to meet our current and future financial commitments
until we reach positive cash flows from operations," added Worthington.
2/... WaveRider Communications Inc. reports third quarter 2005 results ...
WaveRider Communications Inc.
CONSOLIDATED BALANCE SHEETS
(in U.S. dollars)
September 30, December 31,
2005 2004
------------- --------------
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 688,202 $ 1,291,822
Restricted cash - 100,000
Accounts receivable, net 1,607,325 1,056,103
Inventories 561,354 943,644
Prepaid expenses and other assets 103,184 145,805
------------- --------------
Current assets 2,960,065 3,537,374
Property, plant and equipment, net 209,662 295,063
------------- --------------
$ 3,169,727 $ 3,832,437
============= ==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 2,248,492 $ 2,080,064
Deferred revenue 544,931 407,639
Current portion of convertible debentures, net of discounts of $131,870 318,130 -
Current portion of obligations under capital lease 2,013 2,781
------------- --------------
Current liabilities 3,113,566 2,490,484
Convertible debentures, net of discounts of $260,592 and $921,454 respectively 931,245 1,506,322
Obligations under capital lease - 1,854
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Total liabilities 4,044,811 3,998,660
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Shareholders' deficit:
Preferred Stock, $0.01 par value per share:
issued and outstanding Nil shares in 2005 and 2004 - -
Common Stock, $0.001 par value per share:
issued and outstanding - 29,592,443 shares at September 30, 2005 and
16,571,732 shares at December 31, 2004 29,592 16,572
Additional paid-in capital 91,125,306 89,582,484
Other equity 4,673,429 5,134,928
Accumulated other comprehensive loss (322,477) (337,239)
Accumulated deficit (96,380,934) (94,562,968)
------------- --------------
Total shareholders' deficit (875,084) (166,223)
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$ 3,169,727 $ 3,832,437
============= ==============
3/... WaveRider Communications Inc. reports third quarter 2005 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
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------- ------------ -------------- ------------
CONSOLIDATED STATEMENTS OF LOSS
REVENUE
Product revenue $ 2,413,951 $ 2,271,435 $ 6,521,398 $ 5,925,002
Service revenue 595,543 397,784 1,408,240 1,462,954
-------------- ------------ -------------- ------------
3,009,494 2,669,219 7,929,638 7,387,956
-------------- ------------ -------------- ------------
COST OF REVENUE
Product revenue 1,596,489 1,445,226 4,445,459 4,052,247
Service revenue 340,089 199,177 789,495 841,705
-------------- ------------ -------------- ------------
1,936,578 1,644,403 5,234,954 4,893,952
-------------- ------------ -------------- -----------
GROSS MARGIN 1,072,916 1,024,816 2,694,684 2,494,004
-------------- ------------ -------------- ------------
EXPENSES
Selling, general and administration 1,051,346 1,121,693 3,105,720 3,871,484
Research and development 96,896 521,436 357,236 1,376,230
Depreciation and amortization 32,386 53,364 117,098 242,087
Bad debt expense - 18,975 18,599 35,715
-------------- ------------ -------------- ------------
1,180,628 1,715,468 3,598,653 5,525,516
-------------- ------------ -------------- ------------
LOSS FROM OPERATIONS (107,712) (690,652) (903,969) (3,031,512)
-------------- ------------ -------------- ------------
NON-OPERATING EXPENSES (INCOME)
Interest expense 156,432 1,267,017 910,908 2,368,087
Foreign exchange loss 2,738 32,345 12,377 182,442
Interest income (3,054) (412) (9,288) (3,031)
-------------- ------------ --------------- ------------
156,116 1,298,950 913,997 2,547,498
-------------- ------------ --------------- ------------
NET LOSS $ (263,828) $ (1,989,602) $ (1,817,966) $ (5,579,010)
============== ============ =============== ============
BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.01) $ (0.13) $ (0.08) $ (0.38)
============== ============ =============== ============
Weighted Average Number of Common Shares 27,967,983 15,165,678 23,524,238 14,836,601
============== ============ ============== ============
CONSOLIDATED STATEMENTS OF DEFICIT
OPENING DEFICIT (96,117,106) (91,851,707) (94,562,968) (88,262,299)
NET LOSS FOR THE PERIOD (263,828) (1,989,602) (1,817,966) (5,579,010)
-------------- ------------ --------------- ------------
CLOSING DEFICIT $ (96,380,934) $(93,841,309) $ (96,380,934) $(93,841,309)
============== ============ =============== ============
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
NET LOSS FOR THE PERIOD (263,828) (1,989,602) (1,817,966) (5,579,010)
OTHER COMPREHENSIVE INCOME
Cumulative translation adjustment (2,460) (34,182) 14,762 29,267
-------------- ------------- -------------- ------------
COMPREHENSIVE LOSS $ (266,288) $ (2,023,784) $ (1,803,204) $ (5,549,743)
============= ============ =============== ============
See accompanying notes to financial statements.
4/... WaveRider Communications Inc. reports third quarter 2005 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 and 5.8 GHz networks enable communications providers
to establish full-saturation coverage networks, deliver advanced communications
services, 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 the North American and
International markets. WaveRider is traded on the OTC Bulletin Board, under the
symbol WAVR.
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 Contact:
Scott Worthington, Chief Financial Officer
416.502.3200
(corpcomm@waverider.com)