TORONTO, May 15, 2007 (PRIME NEWSWIRE) -- Wireless Age Communications, Inc. (OTCBB:WLSA) ("Wireless Age" or the "Company") today reported its financial performance for the first quarter, ended March 31, 2007.
The operating results of the Company's wholly owned subsidiaries mmwave Technologies Inc. ("mmwave") and Knowlton Pass Electronics Inc. ("Knowlton Pass") have been treated as discontinued operations. The Company disposed of Knowlton Pass effective March 1, 2007 and the operations of mmwave have been wound down and restructured due to significant operating losses. The continuing operations of the Company consist of the stable and profitable wireless retail segment and certain distribution business components of the commercial segment including the sale of prepaid cards and land mobile radio products.
Consolidated revenues from continuing operations for the first quarter of fiscal 2007 were $5,941,668 up from $4,728,337 in first quarter of fiscal 2006. Retail business segment revenues were $3,261,290 up from $2,740,268 during the first quarter of fiscal 2006. Commercial business segment revenues were $2,680,378 up from $1,988,069 during the first quarter of fiscal 2006. Net income from continuing operations for the first quarter of fiscal 2007 was $227,908 compared to a loss of $10,223 a year ago.
Revenues from discontinued operations during the first quarter of 2007 were $863,117 compared to $2,412,480 a year ago. The net loss from discontinued operations in the first quarter of fiscal 2007 was $1,408,732 and $96,615 during the first quarter of fiscal 2006. The loss from discontinued operations for 2007 included termination provisions of former officers of Wireless Age and mmwave. The losses from discontinued operations for 2007 also included losses of Knowlton Pass prior to its sale effective March 1, 2007 offset by a gain on its disposal.
Company CFO Gary Hokkanen stated, "The Company has consistently generated earnings from its retail division and the western Canadian components of the commercial segment. Unfortunately those earnings have been more than offset by losses arising from Knowlton Pass and mmwave and many shareholders have been unaware of the value of the core business of Wireless Age. With the sale and/or wind up of these troubled subsidiaries and careful cost containment at the corporate level, Wireless Age can become profitable."
The company's Chairman and CEO, John G. Simmonds, commented, "We are finally getting the legacy issues at Wireless Age resolved and are encouraged by the progress we are making in cleaning up mmwave. We hope that once this is behind us, the Company will be able to expand our business through acquisition and or mergers. We are also encouraged by the financial commitment made by Newlook Industries as they become our new major shareholder."
For all Wireless Age investor relations needs, investors are asked to visit the Wireless Age IR Hub at http://www.agoracom.com/IR/WirelessAge where they can post questions and receive answers, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to WLSA@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
Note: This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.