- Lite Access Continues Revenue Growth in United Kingdom Operations
- Gains Permitting Approvals in United Kingdom, Additional Crews Trained & Equipped to Position for Significant Growth
VANCOUVER, Aug. 29, 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 third quarter ended June 30, 2017 and provides corporate update. The Company's unaudited financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
Highlights for the Third Quarter 2017:
- Lite Access UK Continues Revenue Growth. Lite Access UK 2017 Q3 revenues of $1,116,293 as compared to Lite Access UK 2017 Q2 revenues of $954,196. Total Lite Access UK revenue of $2,189,682 for the nine-month period ended June 30, 2017.
- UK Home Connections. Lite Access UK has completed over 3,000 homes and 10kms of trunk / backbone across the United Kingdom.
- Revenue for the Group of Companies. Total revenue of $1,912,934 for the quarter ended June 30, 2017 ($5,518,751 for the nine months ended June 30, 2017) compared to $2,437,537 for the quarter ended June 30, 2016 ($10,146,561 for the nine months ended June 30, 2016).
- Key Board Appointments. As previously announced, Lite Access appointed an international telecom veteran, Steven King, and a capital markets veteran, Kevin Smith, to its board of directors at its annual general meeting.
- Liquidity. Cash of $17,242,798 as at June 30, 2017.
- Net Loss. Net comprehensive loss after taxes of $2,032,540 for the quarter ended June 30, 2017 compared to net comprehensive income after taxes of $614,386.
- The net comprehensive loss for 2017 is attributable to Lite Access UK start-up costs relating to intensive training and trialing of different deployment methods, the acquisition of equipment as well as intentionally overstaffing crews to allow for the development of an experienced, trained workforce that can be rapidly scaled to meet anticipated future demand. This includes Research and development expense for development and approval of the Company's narrow trench methodology, the first-ever technology and next evolution of trenching.
"We've accomplished a considerable amount in a very short period of time and have built a strong and stable foundation for our business as we continue to invest the necessary capital, adapt and deploy product and methodology, R&D and train crews to create sustainable and significant growth," stated Lite Access CEO, Mike Plotnikoff. "We have not only focused on the UK as a priority, but have also continued to develop our North American business whereby we have purchased and commissioned Lite Access' proven plant and equipment, recruited and trained employees and successfully enabled new permitting and deployment processes in Canada and abroad that will support the advance of expected new business. These developments will support new business and allow us to fully capitalize on the complete portfolio of our totally integrated fibre optic solutions. We are now entering the growth phase and I've never been so excited about our Company and the business opportunities that we have in front of us right now."
United Kingdom and Ireland
Lite Access Technologies UK Ltd. ("Lite Access UK") 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 3,000 homes and 10kms of trunk / backbone across the United Kingdom using the Company's proven and preferred narrow trench installation methodology. At present, the Lite Access UK team has successfully cross-trained in both FTTP as well as trunk deployments, and is well positioned to ramp up growth in response to anticipated contract awards.
Importantly, Lite Access is the only company that has gained the approval of certain councils for permitting changes to accommodate the Company's unique ability to deploy more rapidly than traditional methods of deployment. As a result, changes to the current permits designed specifically for conventional type construction will now enable Lite Access to exceed the current 100 metre per day restrictions. Having proven its capabilities is a significant milestone that has been achieved in short order and, as a result, is enabling connectivity at a rate that far exceeds any competitor.
"Being the only company that has gained the approval of local councils and recommended as the company of choice has generated the interest of other entities entering into this market," said Mr. Plotnikoff. "Having recently had the permitting process changed to remove the constraint on our ability to trench more in a given day than our competitors has increased our production and margins. Working as a subcontractor has enabled us to specialize as the narrow trench experts and focus on our core competencies that have made Lite Access a recognized and respected global entity."
The business opportunity following the successful FTTH trial in Tullamore, Ireland (see press release dated April 11, 2017) is still being evaluated. Discussions with several potential clients are being held on a regular and scheduled basis including a comprehensive appraisal of the strategies under consideration.
The fibre optic network build for the City of New Westminster, British Columbia (see press releases dated February 9 and March 29, 2017) was successfully completed using a specially designed microduct installed using the first ever, narrow trench deployment. Having successfully modified equipment and blades to cut a much deeper and slightly wider cut; Lite Access continues to provide cutting edge solutions ahead of all competitors. The cut is made at depths ranging between 18 and 36 inches deep, 4 to 6 inches wide using specially engineered equipment and supports a uniquely designed microduct capable of high-fibre-count installation. The Company's ability to cut at depths of 18 to 36 inches using its proven narrow trench processes to accommodate any type of infrastructure essentially offers an alternative solution to the more invasive and costlier traditional trenching approach. Being able to introduce narrow trenching to North America and working collaboratively with the City of New Westminster and its representatives enabled real time research and design of the processes and equipment required to become a mainstream type of construction for fibre connectivity.
Lite Access identified and resolved the criteria needed to build a strong and stable foundation for future opportunities. Process and procedures were documented, presented, approved and formalized. The introduction of a more specialized piece of equipment brought into North America by Lite Access proved to alleviate the challenges and issues faced with a competitive offering. Now entering into the next evolution of alternate deployments methodologies, the Company is in discussion with several clients in North America to use this narrow trenching process to displace traditional deployment methods.
"We are very pleased with the results and acceptance of our narrow trench solution and now include this process in our portfolio of advanced installation methodologies. In Canada, we have brought in our specially designed, first-of-its-kind narrow trenching machine to accommodate the deeper cutting capability and are confident in our ability to continue to provide the most cost effective, quickest to deployment method for fibre optic connectivity."
Work continues for fibre connectivity projects for local municipalities and the Company is also optimistic about the release of further Government funding under the Connecting Canadians program to happen by the end of summer. Accordingly, the team has expanded in North America to include new employees in the Interior of British Columbia as well as the Lower Mainland and also increased office space to accommodate the current and expected growth. As in the case of the project award for Community Wireless Networks of Bamfield, British Columbia (see press release dated July 20, 2017), Lite Access is involved with a number of significant projects that are awaiting funding before starting work.
In Budget 2016, the Government of Canada announced an investment of up to $500 million over five years for a new program to extend and enhance broadband service in rural and remote communities. Investment in quality broadband networks will extend access to innovative services that improve education, healthcare, productivity, and local quality of life. The Connecting Canadians program's objective is to provide at least 280,000 households in rural and remote regions of the country with high-speed, broadband Internet access, so that Canadians can make the most of the digital economy no matter where they live. On July 11, 2017, Innovation, Science and Economic Development Canada announced more than 3,500 households in 22 rural and remote communities in British Columbia, Alberta and Manitoba will have improved high-speed Internet access thanks to an investment of almost $10 million from the Government of Canada.
United States and South Africa
Lite Access is currently working with Alpha Technologies in Charleston, Virginia. Alpha is building a fibre network that will run through different parts of Charleston and South Charleston and is designed to attract more businesses to West Virginia. Enabling the infrastructure will allow high technology jobs to flourish thus creating more jobs to help stimulate the local economy.
The Company is also working with a large construction company in the United States and finalizing a strategic alliance that will enable multiple builds throughout the continental United States. This alliance will help to increase product sales and ensure the "Lite Access Way" is the solution of choice for broadband connectivity.
Lite Access continues to work with its South Africa partner, Brite Access SA in support of numerous micro-trenching projects within gated communities and for large service providers. The Company's LiteXTend product has proven to save time and money for last mile / home connections and the Company expects Brite Access will continue to place orders.
Lite Access Joins The Fiber Broadband Association
Lite Access has been formally accepted as the newest member of The Fiber Broadband Association (FBA) for its unparalleled Microduct and air blown fiber technologies which empower faster, cost-effective, and future-proof fiber deployment around the world. FBA is the largest and only trade association in the Americas dedicated to the pursuit of all fiber optic network infrastructure to the home, to the business and to everywhere.
"Lite Access and their innovative Microduct networks expertly connect homes, businesses, public institutions, and emergency services to much-needed broadband," said Heather Burnett Gold, CEO and President of the Fiber Broadband Association. "We are very glad to have Lite Access on board."
"We are thrilled to join the Fiber Broadband Association," said Mr. Plotnikoff. "We always strive to build partnerships that propel our Company and our industry forward, and that's something that we look forward to doing as a member of this association."
About the Fiber Broadband Association
The Fiber Broadband Association—formerly the Fiber to the Home Council Americas—is the largest and only trade association in the Americas dedicated to the pursuit of all fiber optic network infrastructure to the home, to the business and to everywhere. The Fiber Broadband Association helps providers make informed decisions about how, where, and why to build better broadband networks with fiber optics while counting on its members to lead the organization forward, collaborate with industry allies and propel fiber optic deployment forward. Since 2001, these companies, organizations and people have worked with our communities and consumers in mind to build a better broadband future here and around the world. Learn more at fiberbroadband.org.
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 protected], Contact Financial Corp., 810 - 609 Granville St., Vancouver, BC V7Y 1G5