Lite Access Sees Continued Revenue Growth in UK Operations
VANCOUVER, May 30, 2017 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSX VENTURE: LTE)(OTC PINK: LTCCF), a world leader in fibre optic products and advanced installation methodologies, today reported its financial results for the second quarter ended March 31, 2017 and provided a corporate update. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
Financial Highlights for the Second Quarter 2017:
- Increased Lite Access UK 2017 Q2 revenues of $954,196 as compared to 2017 Q1 Lite Access UK revenues of $119,193 for total Lite Access UK revenue of $1,073,389, an increase of 700%.
- Total revenue of $1,807,563 for the quarter ended March 31, 2017 compared to $6,895,478 for the quarter ended March 31, 2016.
- Total revenue of $3,605,817 for the six months ended March 31, 2017 compared to $7,709,024 for the six months ended March 31, 2016.
- 2017 Q2 revenues $1,807,563 compared to 2017 Q1 revenues of $1,798,254.
- Net loss after taxes of $1,803,586 for the quarter ended March 31, 2017 compared to net income after taxes of $953,096 for the quarter ended March 31, 2016. The net loss for 2017 is attributable to Lite Access UK start-up costs relating to intensive training and trialing of different deployment methods as well as intentionally overstaffing crews to allow for development of an experienced, trained workforce that can be rapidly scaled to meet anticipated future demand.
- Cash of $19,830,446 as at March 31, 2017 compared to cash of $2,115,078 as at September 30, 2016.
Operational Highlights for the Second Quarter 2017:
- Firmly establishes Lite Access UK operations, accounting for 53% of Lite Access' 2017 Q2 revenue.
- Continued developing an experienced and trained workforce as well as key equipment acquisitions to service Lite Access UK operations.
- Started first customer fibre deployments in the UK in connection with a major UK network operator in Wrexham, Wales.
- Successfully completed 265 FTTH trial in Ireland for Actavo on behalf of major UK network operator in the Republic of Ireland.
- Awarded and commenced fibre optic network build for the City of New Westminster, British Columbia.
- New South American construction partner, TEASA and Tilsit (T/T), awarded fibre connectivity project in Panama.
- Successful introduction of Lite Access' revolutionary narrow trench technology – uniquely designed for high fibre count (backbone) applications.
- On March 28, 2017, the Company closed a bought-deal financing for gross proceeds of $20.45 million primarily to advance and support further customer deployments in the UK.
"I am satisfied with the results thus far in 2017 as we have laid the groundwork for Lite Access' success by ramping up employee on the job training in the UK and Western Canada and successfully introducing new technologies to help sustain and grow our business," stated Mike Plotnikoff, CEO of Lite Access. "Growth capital from the recently completed financing are being used towards equipment and having a trained workforce in-place that can be rapidly scaled to meet expected future customer demands and enhance our ability to execute full construction activities on a broader basis."
Mr. Plotnikoff added, "While overall results are important, it is important to emphasize that strategically we made a significant investment in our UK operations and that that business is clearly accelerating with over 2,000 homes now connected representing an eight-fold increase in revenue over the previous quarter. As we establish our operational foothold in the UK and Western Canada, we are well poised to transition to our next phase of growth and see our business inflecting over the coming quarters."
United Kingdom Operations
Lite Access Technologies UK Ltd. (LATUK) continues to connect homes as part of a large-scale project for a major UK network operator in Wrexham, Wales and has now completed over 2,000 homes across the United Kingdom using the Company's proven and preferred narrow trenching technique. In addition to FTTH connections, LATUK has also successfully deployed over 10kms of trunk / backbone network using its modified cutting equipment and processes that have proven to offer the most cost effective, fastest to deploy, and least intrusive means for fibre connectivity.
Within the last two months, the Company's training and upskilling program was put into action to assemble additional backbone and FTTP crews. In support of a major UK operator's initiative to cover 17 million UK premises by 2019, additional crews are being hired and cross-trained in both FTTH as well as trunk installations. At present, the LATUK team has over 50 employees on-the-job-training (billing weekly) with an expectation of growing the UK base to 150 by year end.
Western Canada Operations
On February 9, 2017, Lite Access was awarded a fibre optic network build for the City of New Westminster, British Columbia and construction started on March 29, 2017. Already tested and in use in the UK, this fibre installation featured the use of the Company's narrow trenching process for the first time in North America. Based on the results of the project and new installation methodology, the Company has been approached numerous times with interest from others that will be using this narrow trenching process.
Contracts and Ongoing Expansion Network Projects:
- Awarded first fibre project in the Okanagan Valley, British Columbia for the City of Kelowna
- Awarded fibre optic network extension project for the Corporation of Delta
- Working with the Waterton Improvement District in Waterton Park, Alberta on a FTTH project
- Work continues within the Kootenay region of South Eastern British Columbia for Shaw Cable Systems as well as ongoing network extensions for communities within this territory
- Lite Access continues to support local clients in Vancouver's Downtown core (many of whom are under non-disclosure agreements) by helping to extend existing networks that are required to better service a growing customer base. These ongoing contracts are the latest in a number of similar contracts that have been awarded to Lite Access over the past several years. Past projects have been completed with minimal disruption to the surrounding area and in far less time and at significantly lower costs compared to traditional methods of deployment.
Continued Network Builds in the USA and South Africa
Lite Access has received an additional product order from valued partner Colville Tribes in the State of Washington. Furthermore, the Company continues to support our certified construction partners in the east Coast of the USA in support of our long term clients as well as in South Africa for last mile connectivity using the LiteXTend technology.
Global Certified Construction Partners
Adding new teams of qualified and trained construction partners in territories around the world is part of Company's expansion strategy to solidify its position as a global leader in proven air blown technologies as well as the approved and successful micro / narrow trench processes developed by Lite Access Technologies. The most recent addition, South American partner TEASA and Tilsit, was awarded a fibre connectivity project in Panama that was completed in less time and under budget using the Company's proven process and equipment.
Mr. Plotnikoff explained, "Developing the right strategic alliance and enabling our partners with training, equipment and proven technology, enables success for all parties involved. We continue to establish certified construction partners throughout much of the world, effectively creating an extension of the sales teams to further promote and encourage the adoption of Lite Access as the solution of choice for future proof fibre optic connectivity."
About Lite Access
Lite Access is a world leader in Microduct and fibre optic technologies. Using its specially designed and innovative micro / narrow trench and alternate methods of deployment, Lite Access' proprietary Microduct technology extends a network provider's ability to deliver true broadband connectivity directly to end-users, such as homes, government and educational institutions, and emergency response facilities. Providing a full portfolio of fibre connectivity solutions for many types of Telecom infrastructure, Lite Access has successfully deployed or enabled deployment of thousands of kilometres of Microduct networks throughout North and South America, South Africa, the United Kingdom, the Caribbean, Australia and Asia.
Lite Access' products have been deployed in many high-profile communication networks including Olympic facilities, military and government, numerous communities throughout British Columbia, the USA and Alberta as well as Global telecoms that have adopted Lite Access as the "solution of choice" for future proof fibre optic connectivity solutions. Providing total Integrated Solutions including proven and approved alternate deployment methodologies, Lite Access remains flexible and innovative in its commitment to enable global clients and partners with the most cost effective and proven fibre connectivity available.
Forward Looking Information
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Lite Access uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Lite Access in light of its experience and its perception of historical trends, current conditions and expected future developments. However, whether actual results and developments will conform to Lite Access' expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause Lite Access' actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors include, among other things: risks and uncertainties described in Lite Access's most recent Management Discussion & Analysis (MD&A) for the period ended December 31, 2016 which can be accessed at www.sedar.com. The "forward-looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, Lite Access undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Lite Access Technologies Inc
For further information: Lite Access Technologies Inc., Phone: 1-604-247-4704, Unit 5 - 20678 Duncan Way, Langley, BC V3A 7A3, www.liteaccess.com; For investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: email@example.com, Contact Financial Corp., 1450 - 701 West Georgia St., Vancouver, BC V7Y 1G5