TORONTO, Feb. 28 /CNW/ - Redline Communications Group Inc. (TSX: RDL)
("Redline" or the "Company"), a developer and manufacturer of
specialized broadband wireless systems, today announced preliminary
financial results for the fourth quarter ended December 31st, 2010.
Based on its preliminary review, Redline expects to report that its
financial results for the three-month period ended December 31st, 2010, will include total revenue of approximately US$16.4 million,
compared to US$10.7 million during the same period last year.
The Company expects net income for the fourth quarter of approximately
US$0.1 million, or US$0.01 per share, compared to a net loss of US$2.5
million, or US$0.12 per share during the same period in 2009.
The Company noted that these 2010 fourth quarter results are preliminary
and unaudited and therefore subject to the Company's completion of its
customary quarterly closing and review procedures, as well as an audit
by the Company's independent registered public accounting firm.
Despite strong revenues for the fourth quarter 2010, Redline expects
that the political and social instability in the Middle East will
likely impact its revenues for the first quarter of 2011, given that
this market accounted for a significant portion of revenues in 2010.
Eric Melka, Redline's CEO stated "We believe that the challenging sales
environment in the Middle East will continue at least through the
second quarter 2011. We are actively monitoring the situation and will
continue to invest in growth opportunities in other markets, however,
those efforts are not expected to show immediate results."
Redline will report final fourth quarter 2010 results on March 25, 2011
at which time it will provide further comments on the quarter and the
year, including an update on the challenges in the Middle East.
About Redline Communications
Redline Communications (www.rdlcom.com) manufactures powerful and versatile wireless broadband products used
to cost-effectively deploy distributed applications and services.
Municipalities use Redline products to quickly and easily deploy or
extend their video surveillance networks; oil and gas companies to
monitor how their oil wells are operating; service providers and
enterprises to bring business grade access to buildings. Redline's
radio products are the most deployed commercial radio for the US
military. For over 10 years, Redline has been delivering reliable
wireless solutions with the strong combination of high capacity, speed,
range and reliability. Redline products are marketed and supported
locally through an exclusive network of value added resellers in the
Americas; the Middle East, and Africa.
Certain statements in this release, including the estimate of future
revenues, sales, provided above, constitute forward-looking statements
or forward-looking information within the meaning of applicable
securities laws. In some cases, forward-looking statements can be
identified by terms such as "could", "expect", "may", "will",
"anticipate", "believe", "intend", "estimate", "plan", "potential",
"project" or other expressions concerning matters that are not
historical facts. Readers are cautioned not to place undue reliance
upon any such forward-looking statements.
Such forward-looking statements are not promises or guarantees of future
performance and involve both known and unknown risks and uncertainties
that may cause the actual results, performance, achievements or
developments of Redline to differ materially from the results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Forward-looking statements, by their
nature, are based on certain assumptions regarding expected growth,
management's current plans, estimates, projections, beliefs, opinions
and business prospects and opportunities (collectively, the
"Assumptions"). While the Company considers these Assumptions to be
reasonable, based on the information currently available, they may
prove to be incorrect.
Many risks, uncertainties and other factors could cause the actual
results of Redline to differ materially from the results, performance,
achievements or developments expressed or implied by such
forward-looking statements. These risks, uncertainties and other
factors include but are not limited to the following: significant
competition, competitive pricing practices, cautious capital spending
by customers, industry consolidations, rapidly changing technologies,
evolving industry standards, frequent new product introductions, short
product life cycles and other trends and industry characteristics
affecting the telecommunications industry; any material, adverse
affects on Redline's performance if its expectations regarding market
demand for particular products prove to be wrong; any negative
developments associated with Redline's suppliers and contract
manufacturing agreements including the Company's reliance on certain
suppliers for key components; potential penalties, damages or cancelled
customer contracts from failure to meet delivery and installation
deadlines and any defects or errors in Redline's current or planned
products; fluctuations in foreign currency exchange rates; potential
higher operational and financial risks associated with Redline's
efforts to expand internationally; a failure to protect Redline's
intellectual property rights, or any adverse judgments or settlements
arising out of disputes regarding intellectual property; changes in
regulation of the wireless industry or other aspects of the industry;
any failure to successfully operate or integrate strategic
acquisitions, or failure to consummate or succeed with strategic
alliances; and Redline's potential inability to attract or retain the
personnel necessary to achieve its business objectives or to maintain
an effective risk management strategy (collectively, the "Risks").
For additional information on these Risks, see Redline's most recently
filed Annual Information Form ("AIF") and Annual MD&A, which are
available on SEDAR at www.sedar.com and on the Company's website at www.redlinecommunications.com. Redline assumes no obligation to update or revise any forward-looking
statements or forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly required
by law. All forward looking statements contained in this release are
expressly qualified in their entirety by this cautionary statement.
SOURCE Redline Communications Group Inc.
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