WINNIPEG, April 13 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG), today released its financial results for the second quarter ended February 28, 2010. All dollar figures are reported in Canadian currency.
Second Quarter Results:
Revenue declined from $433,283 in the second quarter ended February 28, 2009 to $367,226 in the second quarter ended February 28, 2010. The Company generates broadband Internet access and television distribution revenues in the Manitoba and British Columbia segments. The decline in revenues has continued over the last three Fiscal years as the Company continues to shift its focus away from its current offering of fixed-wireless digital television distribution business to the development of 4G networks.
The net loss for the second quarter ended February 28, 2010 was $5,557,050 ($0.11 per share) compared to $2,072,956 ($0.04 per share) for the second quarter ended February 28, 2009.
Post-Second Quarter - Highlights:
Craig Wireless Manitoba Inc. ("CW Manitoba") and Craig Wireless British Columbia Inc. ("CW BC"), the operating subsidiaries of the Company in Canada, entered into a definitive agreement dated March 26, 2010 for the sale of the Company's Canadian spectrum assets to Inukshuk Wireless Partnership ("Inukshuk"). Subject to completion of certain conditions, including obtaining all requisite regulatory approvals, Inukshuk will pay $80 million for all of the spectrum licenses held or to be held in Manitoba and British Columbia. The Canadian spectrum assets to be sold represent 22.36% of the Company's total spectrum holdings on a megahertz-population basis. Effective March 31, 2010, the Company amalgamated with Craig Wireless Canada Inc. and CW BC, thereby becoming a party to the definitive agreement with Inukshuk.
The detailed financial statements for the second quarter ended February 28, 2010, the management discussion and analysis of financial condition and results of operations in relation thereto and the Company's annual information form dated November 27, 2009 are all available for viewing on the SEDAR website at www.sedar.com
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, 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 and British Columbia, Canada, the Coachella Valley region, 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 WiMAX-based and other fourth generation (4G) applications, including portable and mobile applications. Additional information about Craig Wireless is available at www.craigwireless.com.
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.
SOURCE Craig Wireless Systems Ltd.
For further information: For further information: J. Drew Craig, Co-Chief Executive Officer, Craig Wireless Systems Ltd., Tel: (416) 515-2222 ext. 2, email:firstname.lastname@example.org