ERF Wireless 2011 Annual Results Show 43 Percent Increase in Revenue
(Marketwire Via Acquire Media NewsEdge) LEAGUE CITY, TX -- (Marketwire) -- 03/26/12 --
ERF Wireless (OTCBB: ERFB), a leading provider of enterprise-class wireless and broadband products and services, announced today that the Company filed its Form 10-K with the Securities and Exchange Commission reporting results for the year ended December 31, 2011.
The Company's financial condition improved dramatically in 2011 as compared to the prior fiscal year ended December 31, 2010, demonstrating the Company's continued progress toward achieving its goals of profitability and a national market listing in 2012. Such improvements toward these goals are as follows:
The Company reported revenues of $5,320,000 for the year ended December 31, 2011, as compared to revenues of $3,708,000 for the prior year ended December 31, 2010; an increase of $1,612,000 or 43%. The Company reported total comprehensive loss of $3,404,000 for the year ended December 31, 2011, as compared to a net loss applicable to common shareholders of $8,511,000 for the prior year ended December 31, 2010; an improvement of $5,107,000 or 60%. The Company's Energy Broadband Inc. subsidiary reported revenues of $2,713,000 for the year ended December 31, 2011, as compared to revenues of $916,000 for the prior year ended December 31, 2010; an increase of $1,797,000 or 196%. The Company reported a reduction of $2,193,000 or 28% decline in operating expenses in the year ended December 31, 2011, as compared to the prior year ended December 31, 2010. The Company's liquidity position improved by $2,819,000 for the year ended December 31, 2011, as compared to the prior year ended December 31, 2010; including a $1,228,000 increase in Current Assets, a $1,591,000 decrease in Current Liabilities that included $1,450,000 retirement of long-term debt and capital lease obligations. Lastly, the Company invested $2,114,000 in cash during the year ended December 31, 2011, primarily for the purchase of assets in its Energy Broadband Inc. subsidiary for the continued expansion of networks and infrastructure, including increasing its Mobile Broadband Trailer ("MBT") fleet associated with the increased oil and gas business growth being experienced.
Richard Royall, CFO of ERF Wireless, commented, "During 2011, we experienced a dramatic improvement in our Energy Broadband subsidiary's business in the oil and gas sector which positively impacted the Company's overall results and we anticipate we will continue to see very positive results in 2012 as Energy Broadband Inc. delivers reliable, cost-effective high-speed bandwidth to an industry that has traditionally been served by low bandwidth VSAT providers only."
The annual results also included a Gross Profit improvement of 119% for the year 2011 as compared to the prior year 2010, with Gross Profit Margins increasing to 37% for the year 2011 from 25% for the prior year 2010. The annual results for 2011 included a one-time gain of $1,176,000 associated with the divestiture of certain non-core wireless broadband assets and operations.
Primary and fully-diluted net loss per share for the year ended December 31, 2011, was ($2.47). Primary and fully-diluted net loss per share for the year ended December 31, 2010, was ($18.38).
Dr. H. Dean Cubley, CEO of ERF Wireless, commented, "During calendar year 2011, we experienced very favorable results in Energy Broadband due to the overall acceptance of our turnkey communications services offerings to the oil and gas industry as well as the increased oil and gas drilling activity in North America. In 2011 we continued to lay the foundation for future growth by partnering with other large wireless network operators to provide Energy Broadband wireless connectivity in regions where ERF Wireless did not currently own networks or needed increased coverage. In addition, in 2011 we continued aggressively building out our own networks in additional oil- and gas-rich territories in multiple states. These efforts have resulted in Energy Broadband being able to expand its operational footprint into many different active oil and gas drilling regions in conjunction with the dramatic increases in rig count being experienced by the oil and gas industry. Given the foundation that we have put in place with Energy Broadband during the last three years, we are already realizing substantially more recurring wireless circuit, construction and services revenues from all of our oil and gas contracts as evidenced by our results for calendar year 2011 and we expect this trend to continue in calendar year 2012."
Additional Highlights and Recent Events The Company made significant progress with its strategic business plan in 2011 as evidenced by the completion and announcement of numerous agreements and business developments. Some of these are:
The Company welcomed experienced banking executive Thomas Wiedebush to its Board of Directors. The Company announced that it has secured $3,000,000 in debt financing from Dakota Capital Fund LLC. The Company issued an ERF Wireless Inc. Dividend in Energy Broadband stock and warrants to its stockholders. The Company completed a significant compression of its public stock float and changed its trading symbol to ERFB. The Company announced that it has received athird patent for the CryptoVue® encrypted security device. The Company announced that its Enterprise Network Services ("ENS") division has been actively working with its existing banking network customers to add new branches to their existing wireless networks. The Company announced that it has retained the services of Investor Awareness Inc. as its new investor relations firm. The Company completed four separate wireless broadband projects with four Texas Independent Public School Districts. The Company announced that it has filed the formal arbitration documentation to conduct arbitration of a major contractual dispute between ERF Wireless and Schlumberger Technology Corporation, a subsidiary of Schlumberger, Ltd. ERF Wireless received $3.0 million in cash including 100,000 shares of KeyOn Communications Holdings Inc. stock for two wireless networks that were sold. About ERF WirelessERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband Inc., ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF Wireless Messaging Services and ERF Network Services. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years. For more information, please visit our websites at www.erfwireless.com and www.erfwireless.net or call 281-538-2101. (ERFWG)
Forward-looking statements in this release regarding ERF Wireless Inc. are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.
ERF Wireless Inc.
281-538-2101 ext. 113
Investor Relations Firm:
Investor Awareness Inc.
Tony Schor or James Foy
Source: ERF Wireless Inc.
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