TORONTO, Oct. 29, 2013 /CNW/ - Redline Communications
(www.rdlcom.com Group Inc. TSX: RDL) today reported preliminary
results1 for the third quarter ended September 30, 2013 and issued notice for its Q3
conference call date.
Based on its preliminary review, Redline reports that revenue
for the third quarter ended September 30,
2013 is expected to be approximately $7 million, with gross margins greater than 65%.
Redline also expects to report third quarter bookings² of
approximately $6.4 million, an order
backlog² greater than $20 million,
and net cash (adjusted for $3 million
drawn on operating line) of approximately $14 million.
As discussed in prior conference calls, variable timing on
shipments and installations on large customer orders adds general
lumpiness to quarterly revenue recognition. In addition, slower
than expected customer processes to implement new technologies and
approve Redline as a vendor have resulted in delayed order
signing.
"We are seeing strong growth in our sales pipeline and we are
not losing business to competitors, but our customers' buying
processes are moving more slowly than we had anticipated," said
Robert Williams, Interim CEO of
Redline Communications. "While our excitement about the potential
in the energy market is greater than ever, our year to date
bookings in energy are just over $15
million and total bookings are approximately $30 million. As such, we don't expect to realize
2013 bookings at the level communicated on May 15th, 2013, when we anticipated energy
bookings in 2013 would grow by more than 35%, contributing
$30 million to $35 million, or about
60% of our total expected order bookings for the year."
The Company noted that these 2013 third quarter results are
preliminary and unaudited and subject to the Company's completion
of its customary quarterly closing and review procedures, as well
as a review by the Company's independent registered public
accounting firm.
Full financial results for the third quarter ended September 30, 2013 will be released following the
close of trading on the Toronto Stock Exchange November 14th, 2013. A
conference call and webcast to discuss the results has been
scheduled for the following day, November
15th, 2013 at 10:00 a.m.
Eastern Time.
To participate, please dial 1-647-427-7450 or 1-888-231-8191
approximately 10 minutes before the conference call, and provide
passcode 90027350. A recording of the call will be available
through November 30, 2013. To listen
to the rebroadcast please dial 1-416-849-0833 or 1-855-859-2056 and
enter passcode 90027350. A webcast of the call will also be
available on Redline's website at
http://www.rdlcom.com/en/about/investors/webcasts.
Redline Communications will not provide
additional information regarding its quarterly results and/or
updated full-year expectations until it reports its finalized third
quarter results as planned on November 14,
2013. These preliminary results are based on Redline's
initial analysis of the company's results, and are subject to
change as the company completes its normal quarterly earnings
processes.
About Redline Communications
Redline Communications (www.rdlcom.com) the innovator of Virtual
Fiber™, a specialized wireless broadband system used by companies
and governments worldwide to cost-effectively deploy distributed
services and applications. Redline Virtual Fiber™ solutions
are used to facilitate and enhance public safety networks, deploy
and extend secure networks, connect digital oil fields and smart
grids, and bring dedicated Internet access wherever and whenever
it's needed. Redline has been delivering powerful, versatile and
reliable wireless systems to governments, the military, oil and
gas, and the telecom industry for over a decade through its global
network of certified partners. For more information visit
www.rdlcom.com.
NOTES:
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All amounts reported in this press release are in US dollars
unless otherwise stated. |
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To better assess the health and growth of the Redline's
business, the Company uses non-IFRS measures to assess its
operating performance. These include but are not limited to
"Orders or Bookings," "Shipped or Shipments," "Backlog," "EBITDA,"
"Adjusted EBITDA," "Income before non-operating items," "EPS
excluding the non-cash expense relating to the fair market
adjustment on the Debenture," and "Amortized Deferred
Revenue." Securities regulations require that companies
caution readers that earnings and other measures adjusted to a
basis other than IFRS do not have standardized meanings and are
unlikely to be comparable to similar measures used by other
companies. Accordingly, they should not be considered in
isolation. Further information including definitions of these
categories can be found in the Company's Management Discussion and
Analysis for the three months and nine months ended September 30,
2013 ("Q3 2013 MD&A"), copies of which will be available on
SEDAR at www.sedar.com after November 14, 2013. The selected
financial information included in this release is qualified in its
entirety by, and should be read together with the Condensed
Consolidated Interim Financial Statements of the Company for the
three months and nine months ended September 30, 2013 and the Q3
2013 MD&A, to be available on SEDAR at www.sedar.com after
November 14, 2013. |
Forward Looking Statements
Certain statements in this release may constitute
forward-looking statements or forward-looking information within
the meaning of applicable securities laws. In some cases,
forward-looking statements can be identified by terms such as
"could," "expect," "may," "will," "anticipate," "believe,"
"intend," "estimate," "plan," "potential," "project" or other
expressions concerning matters that are not historical facts.
Readers are cautioned not to place undue reliance upon any such
forward-looking statements. Such forward-looking statements are not
promises or guarantees of future performance and involve both known
and unknown risks and uncertainties that may cause the actual
results, performance, achievements or developments of Redline to
differ materially from the results, performance, achievements or
developments expressed or implied by such forward-looking
statements. Forward-looking statements, by their nature, are based
on certain assumptions regarding expected growth, management's
current plans, estimates, projections, beliefs, opinions and
business prospects and opportunities (collectively, the
"Assumptions"). While the Company considers these Assumptions
to be reasonable, based on the information currently available,
they may prove to be incorrect.
Many risks, uncertainties and other factors
could cause the actual results of Redline to differ materially from
the results, performance, achievements or developments expressed or
implied by such forward-looking statements. These risks,
uncertainties and other factors include but are not limited to the
following: significant competition, competitive pricing practices,
cautious capital spending by customers, industry consolidations,
rapidly changing technologies, evolving industry standards,
frequent new product introductions, short product life cycles and
other trends and industry characteristics affecting the
telecommunications industry; any material, adverse effects on
Redline's performance if its expectations regarding market demand
for particular products prove to be wrong; any negative
developments associated with Redline's suppliers and contract
manufacturing agreements including the Company's reliance on
certain suppliers for key components; potential penalties, damages
or cancelled customer contracts from failure to meet delivery and
installation deadlines and any defects or errors in Redline's
current or planned products; fluctuations in foreign currency
exchange rates; potential higher operational and financial risks
associated with Redline's efforts to expand internationally; a
failure to protect Redline's intellectual property rights, or any
adverse judgments or settlements arising out of disputes regarding
intellectual property; changes in regulation of the wireless
industry or other aspects of the industry; any failure to
successfully operate or integrate strategic acquisitions, or
failure to consummate or succeed with strategic alliances; and
Redline's potential inability to attract or retain the personnel
necessary to achieve its business objectives or to maintain an
effective risk management strategy (collectively, the
"Risks").
For additional information on these Risks,
see Redline's most recently filed Annual Information Form ("AIF")
and Annual MD&A, which are available on SEDAR at www.sedar.com
and on the Company's website at www.redlinecommunications.com.
Redline assumes no obligation to update or revise any
forward-looking statements or forward-looking information, whether
as a result of new information, future events or otherwise, except
as expressly required by law. All forward looking statements
contained in this release are expressly qualified in their entirety
by this cautionary statement.
SOURCE Redline Communications Group Inc.