WINNIPEG, April 14 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless"
or the "Company") (TSX: CWG), today released its financial results for the
three and six month period ended February 28, 2009. All dollar figures are
reported in Canadian currency.
Revenue declined from $482,745 in the second quarter ended February 28,
2008 to $433,283 in the second quarter ended February 28, 2009 as the Company
continued to shift its focus away from its current fixed-wireless digital
television distribution business in British Columbia and Manitoba.
The net loss for the second quarter ended February 28, 2009 was
$2,072,956 compared to $1,175,281 for the second quarter ended February 29,
2008. The loss per share, basic and diluted for the second quarter ended
February 28, 2009 was $0.04 per share compared to a loss of $0.02 per share
for the second quarter ended February 29, 2008. The increase in the loss and
loss per share is due to an increase in consulting and professional fees, base
station site leases, salary costs, corporate compliance costs and
amortization. Additional personnel were hired to support the network
build-outs in both Greece and the Coachella Valley and amortization expense
increased as the Company commenced amortization of the Company's spectrum
license in Greece in Fiscal 2009 and also amortized network assets in Greece
and the Coachella Valley.
Subsequent Events to the Second Quarter:
Extension of Loan Agreement
The Company is pleased to announced that it has concluded an agreement
with Mr. T. Boyd Craig and Mr. J. Drew Craig, the Co-Chief Executive Officers
of the Company, to extend the term of the $11.6 million dollar loan facility
provide by them (the "Loan") for an additional one year to July 31, 2010 (the
"Loan Extension"). In connection with the Loan Extension, the Company has
agreed to temporarily repay to Mr. T. Boyd Craig the sum of one million
dollars. Mr. T. Boyd Craig has agreed to re-advance the same amount to the
Company on or before September 30, 2009. Save and except for the foregoing,
the Loan, as amended, remains in full force and effect.
Mr. Barry Reiter, Chairman of the Company's Compensation, Corporate
Governance and Nomination Committee, stated on behalf of the Board of
Directors: "The Board of Directors appreciates the continued support and
commitment of the Craigs. The Board continues to be of the view that the terms
of the Loan are fair and reasonable, especially in light of current market
conditions. Having the extension in place long before the Loan is due relieves
pressure that the Company would have been under to obtain alternate financing
in very difficult market conditions."
Sale of Interest in Norway and New Zealand Spectrum Licenses
As previously announced, subsequent to the second quarter ended February
28, 2009 the Company completed a transaction with Everest Wireless Partners I
LP for the sale of a one half interest in each of the licenses for spectrum
rights held by the Company in Norway and New Zealand for aggregate
consideration of $5.75 million US dollars.
New Wholesale Agreement in Greece
Also subsequent to the second quarter and as previously announced, the
Company's indirect subsidiary Craig Wireless Hellas S.A. entered into a
wholesale agreement with Net One A.E., providing for non-exclusive access to
Craig Wireless Hellas S.A.'s WiMAX-enabled network in Greece for an indefinite
The detailed financial statements for the second quarter ended February
28, 2009, the management discussion and analysis of financial condition and
results of operations in relation thereto and the Company's annual information
form dated November 28, 2008 are all available for viewing on the SEDAR
website at www.sedar.com
About Craig Wireless Systems Ltd.
Craig Wireless Systems and its affiliates (collectively, the "CWS Group")
offer a broad range of telecommunications services, including, broadband
Internet access, television programming delivery, business connectivity
solutions, hosting, security and telecommunications solutions. Through certain
members of the CWS Group, Craig Wireless holds or leases licenses for spectrum
in the 2.5 GHz, 2.6 GHz or 3.5 GHz bands in Manitoba, British Columbia, the
Coachella Valley region, California, United States, Greece, Norway and New
Zealand. Spectrum in these ranges is effective for delivery of
point-to-multipoint signals, possesses robust bandwidth capability and
supports emerging WiMAX-based and other fourth generation (4G) applications,
including portable and mobile applications.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Notice on forward-looking statements
This release includes forward-looking statements regarding Craig Wireless
and its business. Such statements are based on management's current
expectations. The forward-looking events and circumstances discussed in this
release may not occur and actual results could differ materially as a result
of known and unknown risk factors and uncertainties affecting Craig Wireless
and its business. No forward-looking statement can be guaranteed.
Forward-looking statements speak only as of the date on which they are made
and Craig Wireless does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new information,
future events, or otherwise.
For further information:
For further information: J. Drew Craig, Co-Chief Executive Officer,
Craig Wireless Systems Ltd., Tel: (416) 515-2222 ext. 2;