ARC Wireless Reports Net Income for 2002
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| WHEAT RIDGE, Colo.--(BUSINESS WIRE)--March 28, 2003--ARC Wireless Solutions,
Inc. (OTCBB: ARCS -
News) today announced that
net income for the fiscal year ended December 31, 2002, was $307,000 as
compared with a loss of $2,801,000 for the prior year. The loss for the 2001
prior year period includes a $1.3 million writedown of goodwill impairment and
a $1 million amortization of purchased intangibles, neither of which occurred
for the 2002 current year period.
Net sales increased to $32.6 million as compared with $30.9 million for 2001.
The primary reason for the increase in revenues is an 87% increase in revenue
from the Company's Wireless Communications Products Division, which resulted
primarily from the addition of the Company's base station antenna product line
acquired in August of 2001 and from increased sales of the Company's panel
antennas.
Gross profit margins were 18.7% in 2002 as compared with 19.6% in 2001. The
slight decrease in gross margin for 2002 vs. 2001 is primarily the result of
the decrease in Winncom's profit margin offset by increased sales in the
Wireless Communications Products Division which had margins in 2002 of
approximately 36%.
Randall P. Marx, Chief Executive Officer, commented, "In light of the
economic climate we are operating in, we are pleased with our revenue and
earnings performance. Continued strong demand for Wi-Fi products, as well as
the implementation of tighter cost controls and reduced overhead, accounted
for the improved results.
"We believe that our diversification will continue to position ARC
Wireless as a dependable supplier of wireless infrastructure components as we
are well underway with our plans to expand our product offerings into Eastern
Europe. This effort is confirmed by Winncom becoming a Master Distributor for
Proxim for Eastern Europe and our recent announcements relating to potential
business in both Kazakhstan and Uzbekistan."
Mr. Marx added, "In addition, product development in our antenna
division is increasing with the addition of several new fixed antenna and base
station products. The Company will introduce several new products in 2003 in
all product categories, including the new Freedom Antenna(TM) category, which
was introduced last year."
Mr. Marx also noted, "As we move forward, we will continue to face
challenges relating to the existing economic climate and geopolitical issues.
Existing international conditions have slowed Winncom's international
expansion in the first quarter of 2003. In addition, base station antenna
rollouts at the beginning of 2003 were delayed by certain cellphone carriers,
and this will negatively affect base station sales in the first quarter of
2003. Based on these two temporary events, the Company implemented cost
reduction measures to better align our operations with the anticipated lower
revenue in the first quarter of 2003. However, we are very pleased with the
increase in retail expansion of the Freedom Antenna(TM) and are looking
forward to signing a lease for a larger facility in the Denver area that will
dramatically increase our space, efficiency and the manufacturing capability
of our Wireless Communications Products Division."
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 ARC
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 ARC Wireless Communications Products Division and its
Starworks Wireless subsidiary, are 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, 303/421-4063
303/424-5085 (fax)
randall.marx@arcwireless.net
or
Richard Anderson, 303/421-4063
303/424-5085 (fax)
richard.anderson@arcwireless.net
or
www.arcwireless.net
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