RANCHO MIRAGE, CA, Feb. 10, 2012 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG), today released its interim consolidated financial results for the first quarter ended November 30, 2011. All dollar figures are reported in Canadian currency.
As at November 30, 2011 the Company had cash reserves of approximately $14.8 million and no debt. The Company intends to utilize the cash reserves to continue to execute on its strategies as outlined in the Company's most recently filed management discussion and analysis dated February 9, 2012.
Acquisition of Woosh Wireless - New Zealand
On November 30 2011, the Company completed the acquisition of the net assets of Woosh Wireless Limited, a New Zealand wireless Internet company with over 25,000 customers at the time of acquisition. The Company now owns 51% of Woosh Wireless Holdings Limited, which in turn holds 100% of the shares of Woosh Wireless (NZ) Limited, the company that now owns the assets and conducts the business formerly carried on by Woosh Wireless Limited. Woosh Wireless (NZ) Limited holds spectrum licenses in New Zealand in the 2.0 GHz and 2.2 GHz spectrum ranges and has an agreement in place with Woosh Wireless Limited to acquire an additional 35 MHz of 2.3 GHz spectrum, pending satisfaction of certain conditions (for further information see the section entitled "Three Year History - New Zealand" of the Company's annual information form dated November 23, 2011).
Spectrum Lease Extension - Coachella Valley
In September 2011, the Company entered into an agreement for the early renewal of its lease for spectrum rights in the Coachella Valley including an extension of the previous 15-year lease to a new 30-year lease. The renewal and extension solidifies the Company's presence in the greater Palm Springs (Coachella Valley) area for the foreseeable future.
The Company has successfully transitioned from former Canadian Generally Accepted Accounting Principals (GAAP) to International Financial Reporting Standards ("IFRS"). The results contained in the Company's first quarter interim consolidated financial statements represent the first set of the Company's financial statements prepared in accordance with IFRS.
Consolidated Operating Results
Including one-time business development expenses associated with the acquisition of Woosh Wireless - New Zealand and other merger and acquisition activities, the Company reported a net loss of $2,399,346 ($0.05 per share) for the quarter ended November 30, 2011. Following the Company's sale of its Canadian operations and spectrum assets for $80.0 million, the repayment of all debt and the dividend payment of over $20.0 million to all shareholders in 2010, the Company continues to invest the remaining cash reserves to fund network, spectrum and operations growth in countries throughout the world.
Boyd Craig, the Company's President and Chief Executive Officer commented; "We are very pleased with our 51% acquisition of the Woosh Wireless business in New Zealand. We look forward to working with our new team members to further our business strategies in that region."
About Craig Wireless Systems Ltd.:
Craig Wireless and its affiliates (collectively, the "CWS Group") offer a broad range of telecommunications services, including, broadband internet access, 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 Riverside County in Southern California, United States and in Greece. The CWS Group also has spectrum interests in Norway and New Zealand. Spectrum in these ranges is effective for delivery of point-to-multipoint signals, possesses robust bandwidth capability and supports emerging 4G-based 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:
Boyd Craig, Chief Executive Officer, Craig Wireless Systems Ltd., email: [email protected].