Exhibit 99.1
For Immediate Release
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Company Contacts: ARC Wireless Solutions, Inc.
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Randall Marx, Chief Executive Officer Phone: 303-421-4063
randall.marx@arcwireless.net Fax: 303-424-5085
Richard Anderson, Investor Relations
richard.anderson@arcwireless.net
web page: www.arcwireless.net
ARC WIRELESS SOLUTIONS ANNOUNCES FIRST QUARTER 2008 FINANCIAL RESULTS
Wheat Ridge, Colorado May 13, 2008 - ARC Wireless Solutions, Inc.
(NASDAQ:ARCW) today announced operating results for the three months ended March
31, 2008.
Total revenue for the first quarter ended March 31, 2008 was $1,894,000, a
20% increase, compared to total revenue of $1,581,000 for the same period last
year. Gross profit increased to $715,000 for the first quarter of 2008, up 74%
from $411,000 for the same period last year. Gross margin increased from 26% in
the first quarter of 2007 to 38% for the same period this year. General and
Administrative expenses, which includes salaries, benefits, outside consulting
services, depreciation, bad debt reserve and sales tax, increased $61,000. SG&A
as a percent of revenue decreased from 55% for the three months ended March 31,
2007 to 49% for the three months ended March 31, 2008. Net loss for the three
months ended March 31, 2008, decreased 64% to $106,000, or $.03 per share,
compared to a loss of $298,000, or $.10 per share, for the same period last
year.
As of March 31, 2008, the Company had $14,642,000 in cash and cash
equivalents. Interest income for the three months ended March 31, 2008 was
$108,000 as compared to $159,000 for the three months ended March 31, 2007. The
decline in interest income is due to a decline in interest rates on US Treasury
Bills where a significant portion of the funds are invested. Total shareholders'
equity at March 31, 2008 was $15,327,000 with a net book value of $4.96 per
share.
"We are encouraged by the results of the first quarter given the transition
of many of the technologies served by our products," said Randall P. Marx, ARC
Wireless' Chief Executive Officer. "The diversified strategy of our antenna
division has enabled us to continue to penetrate both the domestic and
international marketplace and to add new customers. Additionally, the Company
has introduced several new products in 2008 with innovative and unique solutions
for our mobile, GPS and panel antenna product lines."
Mr. Marx concluded, "We have a solid balance sheet and will continue to
actively explore strategic opportunities through acquisition or other means as
the market conditions become more predictable. Until then, in what appears to be
a difficult economy for domestic growth, we believe the best way to deliver
long-term shareholder value is to continue our focus on international business,
conserve our capital and take the actions necessary to ensure the continued
performance of our assets."
About ARC Wireless Solutions, Inc.
ARC Wireless Solutions, Inc. is involved in selective design,
manufacturing, marketing and selling of a broad range of wireless components and
network products and accessories. The Company develops, manufactures and markets
proprietary products, including Wi-Fi(R) and WiMAX(TM) panel antennas, mobile
GPS, and cellular antennas, as well as base station antennas (for cellphone
towers), through its Wireless Communications Solutions Division; it designs,
manufactures and distributes cable assemblies for cable, satellite and other
markets through its Starworks Wireless Inc. subsidiary; and it negotiates and
manages its contract manufacturing relationships through its ARC Wireless Hong
Kong Ltd. subsidiary. The Company's products and systems are marketed through
the Company's internal sales force, OEMs, reseller distribution channels,
retail, and the Internet. ARC Wireless Solutions, Inc., together with its
Wireless Communications Solutions Division and its Starworks Wireless Inc.
subsidiary, are headquartered in Wheat Ridge, Colorado. The Company's Hong Kong
subsidiary is located in Central, Hong Kong. For more information about the
Company and its products, please visit our web sites at www.arcwireless.net,
www.antennas.com, www.starworkswireless.com and www.arcwirelesshk.net
This is not a solicitation to buy or sell securities and does not purport
to be an analysis of the Company's financial position. This Release contains
forward-looking statements within the meaning of the Securities Exchange Act of
1934. Although the Company believes that the expectations reflected in the
forward-looking statements and assumptions upon which forward-looking statements
are based are reasonable, it can give no assurance that such expectations and
assumptions will prove to have been correct. See the Company's most recent
Quarterly Report on Form 10-Q and Annual Report on Form 10-K for additional
statements concerning important factors, such as demand for products,
manufacturing costs, and competition, and the Company's ability to successfully
utilize its cash, that could cause actual results to differ materially from the
Company's expectations. The Company does not intend (and is not obligated) to
update publicly any forward-looking statements.