EXHIBIT 99.1
ERF WIRELESS REPORTS SECOND QUARTER 2008 RESULTS
LEAGUE CITY, Texas, Aug. 18, 2008 (BUSINESS WIRE) -- ERF Wireless (OTCBB: ERFW),
a leading provider of enterprise-class wireless and broadband products and
services, announced today that the company has filed its Form 10-Q with the
Securities and Exchange Commission reporting results for the second quarter
ended June 30, 2008.
Dr. H. Dean Cubley, CEO of ERF Wireless, commented, "Our management team and
employees have achieved a significant amount of success across all our business
units in the second quarter. We have continued to grow our core regional banking
business by securing additional bank network contracts as well as continuing the
development of our US-BankNet system, a secure enterprise-class wireless network
for the banking industry. Additionally we have continued to grow our large
wireless broadband coverage for our WISP business and have begun to leverage
these assets by providing services to new customers in the oil and gas sector
underlying our network coverage. We have recognized the significance of this new
vertical market for our wireless networks by forming a new Oil and Gas Division
within the company to more fully take advantage of this new opportunity. With a
sound backlog of contracts already in place, the company is also well-positioned
to continue to execute its business plan in the second half of 2008."
For the second quarter of 2008, the company reported total net sales of
$1,005,000, a decrease of 59% compared with $2,424,000 in the second quarter of
2007. The $1,419,000 decrease in net sales during the second quarter of 2008 as
compared to the net sales generated in the second quarter of 2007 is primarily
attributable to $1,270,000 decrease in Wireless Messaging Services construction
services for the El Dorado Golf and Beach Club of San Jose del Cabo, Mexico; a
$286,000 decrease in banking network installation and services resulting in
reduced network construction revenues in 2008 and offset with an increase of
$1,307,000 in recurring wireless WISP services with the increased growth
attributed to recent WISP acquisitions. For the three and six months ended June
30, 2008, the company reported losses from operations of $1,941,000 and
$3,434,000 compared to losses from operations of $751,000 and $1,879,000 for the
three and six months ended June 30, 2007. The increase in losses from operations
was primarily attributable to increases in employment, professional services,
depreciation and amortization and general and administrative. For the six months
ended June 30, 2008 and 2007, cash used for operating activities was $2,091,000
and $234,000, respectively. Primary and fully-diluted net loss per share for the
three and six months ended June 30, 2008, were ($0.03) and ($0.05),
respectively. Primary and fully-diluted net loss per share for the three and six
months ended June 30, 2007, were ($0.04) and ($0.09), respectively.
RECENT EVENTS
o The company announced the formation of a new Oil and Gas Services
Division to address growing customer demand in the oil and gas industry
for the company's wireless products and services. Utilizing the
resources of its rapidly expanding wireless broadband networks in Texas,
New Mexico and Louisiana, the Company is now actively supplying
specialized products and services to oil and gas customers through this
new division.
o The company announced the appointment of John Nagel to the position of
CEO of the newly formed Oil and Gas Services Division. John is an
experienced ERF executive and has been leading the development of this
new business initiative and overseeing the delivery of cost-effective
solutions to our oil and gas customers.
o The company announced BranchNet and US-Bank Net contracts with Fidelity
Homestead Savings Bank, a leading Louisiana financial institution since
1908. The company expects to recognize the one-time revenues for this
project during the 3rd and 4th quarters of 2008 and the recurring
revenues from such customer agreements over their respective 7 and 10
year contracts.
o The company announced its second BranchNet contract in Texas following
the completion of an agreement with West Texas State Bank to
interconnect the bank's six branches located in the greater Odessa area,
including Midland, Kermit and Monahans. The company expects to recognize
the one-time revenues for this project during the 3rd and 4th quarters
of 2008 and the recurring revenues from such customer agreements over
their respective 10 year contracts.
o The company announced WiNet contracts with banks in Texas and Louisiana.
These 10-year contracts with Louisiana-based Fidelity Homestead Savings
Bank and Texas-based Classic Bank will bring wireless broadband and
wireless infrastructure to certain rural communities in both Texas and
Louisiana via the utilization of the bank's excess bandwidth and
wireless infrastructure to provide Wireless Internet Service Provider
(WISP) products and services to the bank's commercial and retail
customers.
About ERF Wireless
ERF Wireless Inc. is a fully reporting public corporation (OTCBB: ERFW) that
specializes in providing secure wireless and broadband product and secure
service solutions to banking and commercial clients on a national and
international basis. Its principals have been in the network integration,
triple-play FTTH, IPTV content delivery, and Internet banking and encryption
technology businesses for over 20 years and have constructed encrypted, wireless
broadband networks, fiber to the home projects, as well as secure Internet
banking solutions for hundreds of banks across America. For more information
about ERF Wireless, please visit www.erfwireless.com or call 281-538-2101.
(ERFWG)
Forward-looking statements in this release regarding ERF Wireless Inc. are made
pursuant to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking statements
involve risks and uncertainties, including, without limitation, continued
acceptance of the company's products, increased levels of competition, new
products and technological changes, the company's dependence upon third-party
suppliers, intellectual property rights, and other risks detailed from time to
time in the company's periodic reports filed with the Securities and Exchange
Commission.
SOURCE: ERF Wireless Inc.
ERF Wireless Inc.
Clareen O'Quinn, 281-538-2101 ext. 113
coquinn@erfwireless.com
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