ARC Wireless Solutions Reports 3rd Quarter Results
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WHEAT RIDGE, Colo.--(BUSINESS WIRE)--Nov. 14, 2002--ARC Wireless Solutions, Inc. (OTCBB:ARCS - News) today reported financial results for the three and nine month periods ended September 30, 2002. Net sales for the period increased to $8,500,000 as compared with $7,300,000 for the same period last year. The 16% increase in sales is attributable to an 11% increase in revenues at the Company's Winncom Technologies subsidiary and a 107% increase from its Wireless Communications Products Division. The Company had a net loss of $294,000 for the three months ended September 2002 compared with a net loss of $464,000 for the three months ended September 30, 2001.
As a result of product mix sales at Winncom, gross profit margins
decreased to 14.3% from 17.4% for the same period of the prior year.
Net sales for the nine month period ended September 30, 2002, increased to
$24,489,000 as compared with $23,361,000 for the same period last year. Net
income for the nine months ended September 30, 2002, was $313,000 as compared
with a loss of $1,337,000 for the same period last year. The increase in net
income for the nine month period ended September 30, 2002, is primarily due to
the following: increased revenues in the Wireless Communications Products
Division: increased gross profit margins in the Wireless Communication
Products Division, a portion of which are from the sale of certain inventory
purchased at below market costs as part of the base station antenna asset
acquisition in 2001; a reduction in general and administrative expenses; gain
from debt cancellation of $226,000; and the termination of amortization of
goodwill effective January 1, 2002, which was $760,000 for the nine months
ended September 30, 2001.
"Given the current state of the wireless marketplace, we are pleased
that we have achieved such a solid performance to date for 2002," stated
Randall P. Marx, Chief Executive Officer of the Company. "Looking
forward, our Wireless Communications Products Division has started the fourth
quarter with its largest backlog in history resulting partially from delayed
orders of base station antennas in the third quarter. The Division also gained
traction in the retail marketplace with the new Freedom Antenna(TM) introduced
earlier this year and continues to increase sales of its Wi-Fi antenna
offerings. Winncom continues to experience significantly higher unit sales of
its Wi-Fi products, but at lower prices, thereby reducing revenues and gross
profits. Winncom's third quarter gross profit margins were additionally
affected by a product mix that included large sales of its lower margin
components in September. Winncom continues to expand its product portfolio and
international business," Mr. Marx added.
About ARC Wireless Solutions, Inc.
ARC Wireless Solutions, Inc. is involved in marketing, distributing and
servicing, as well as selective design and manufacturing, of a broad range of
wireless components and network products and accessories. The Company
develops, manufactures and markets proprietary products, including base
station antennas (for cellphone towers) and other antennas, through its
Wireless Communications Products Division; it is a value added distributor of
Wi-Fi and other wireless networking products through its Winncom Technologies
Corp. subsidiary; and it designs, manufactures and distributes cable
assemblies for cable, satellite and other markets through its Starworks
Wireless, Inc. subsidiary. The Company's products and systems are marketed
through the Company's internal sales force, OEMs, numerous reseller
distribution channels, retail, and the Internet. ARC Wireless Solutions, Inc.,
together with its Wireless Communications Products Division and its Starworks
Wireless subsidiary, is headquartered in Wheat Ridge, Colorado. The Company's
Winncom Technologies Corp. subsidiary is located in Solon, Ohio. For more
information about the Company and its products, please visit our web sites at www.arcwireless.net,
www.antennas.com, www.winncom.com
and www.starworkswireless.com.
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-QSB and Annual Report on
Form 10-KSB for additional statements concerning important factors, such as
demand for products, manufacturing costs, and competition, that could cause
actual results to differ materially from the Company's expectations.
Contact:
ARC Wireless Solutions, Inc.
Randall Marx or Richard Anderson, 303/421-4063
Fax 303/424-5085
randall.marx@arcwireless.net
richard.anderson@arcwireless.net
www.arcwireless.net
Source: ARC Wireless Solutions, Inc.
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