VANCOUVER, BC, Aug. 28, 2020 /CNW/ - LITE ACCESS
TECHNOLOGIES INC. (the "Company") (TSX VENTURE: LTE)
(OTC PINK: LTCCF), a world leader in the use of innovative and
proven micro/narrow trenching technologies, alternate methods of
deployment and specialist products which transform the cost of
fibre optic network deployment for telecommunications
operators, yesterday reported its financial results for
the third quarter ended June 30,
2020. 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 THIRD QUARTER:
- Total Q3 2020 revenue of $6,428,504 compared to $1,377,726 for Q3 2019 and $2,036,507 for Q2 2020, representing an increase
of 367% and 216%, respectively,
- Gross margin for Q3 2020 was $1,156,064, or 18%, compared to $(416,638), or -30%, in Q3 2019 and $(210,330), or -10%, in Q2 2020;
- EBITDA* for Q3 2020 was $(501,374) compared to $(1,584,450) for Q3 2019 and $(1,638,109) for Q2 2020;
- Net comprehensive loss of $1,131,264 for Q3 2020 compared to a loss of
$2,235,364 in Q3 2019 and a loss of
$2,018,876 in Q2 2020;
- Working capital of $2,462,930 at
June 30, 2020.
"Our third quarter was one of growth through an extraordinarily
uncertain time," said Carlo Shimoon,
President & CEO of Lite Access. "On a year-over-year
basis, revenue increased 367% over Q3 2019 and gross margin
increased to 18% compared to -30% in 2019 with a significant
reduction in net loss. On the back of three substantial
contracts with CityFibre in the UK, and the opportunities that
present themselves here in Canada,
we expect to deliver significant revenue, gross margin and EBITDA
improvements for the balance of fiscal 2020 and throughout fiscal
2021. Management is focused on the execution of our Contracts
and delivering continuous improvement in our financial performance,
month-over-month and quarter-over-quarter.
This is the beginning of a significant and sustainable growth
period for Lite Access as our UK contracts are for large scale,
multi-year rollouts and we anticipate ramping up operations in
additional cities to meet the demands of our current and future
customers. Since January 2020, our
Company has progressively commenced and scaled up its operations in
Lowestoft followed by additional city deployments in Bury St.
Edmunds and Cambridge, requiring
Lite Access to grow to approximately 250 employees in
approximately 6 months, during a global pandemic.
While COVID-19 did negatively impact our financial performance
for the quarter, we continued to work closely with our clients and
meet our contractual obligations. I would like to sincerely
thank all our staff for their continued commitment and support that
allowed us to grow during this truly unprecedented time. We
will continue to adapt to best practices, systems, policies and
procedures in order to keep our employees safe and healthy."
HIGHLIGHTS SUBSEQUENT TO THE THIRD QUARTER:
On August 20, 2020, the Company
met the criteria to accelerate the expiry date of the outstanding
warrants and has chosen to accelerate the expiry date of the
warrants to September 11, 2020,
primarily because of the significant growth Lite Access is
currently experiencing quarter-over-quarter and anticipating going
into fiscal 2021, the result of the Company's billing cycle moving
from every two weeks to every month, and the result of a slower
than anticipated ramp-up due to COVID-19.
About Lite Access
Lite Access Technologies Inc. is a world leader in the use of
innovative and proven micro/narrow trenching technologies,
alternate methods of deployment and specialist products which
transform the cost the network deployment for telecommunications
operators. Lite Access has successfully deployed or enabled
deployment of thousands of kilometres of broadband networks
throughout North America and the
United Kingdom as well as
South America, Africa, Australia and Asia.
As part of its suite of services, Lite Access provides clients
with integrated solutions or select components for the design and
implementation of fibre optic networks. Lite Access' products
have been deployed in many high-profile communication networks
including Olympic facilities, military and government, numerous
communities throughout the United
Kingdom, the USA and
Canada as well as global
telecommunications companies that have adopted Lite Access as the
"solution of choice" for the least invasive, most cost effective
and future-proof fibre optic connectivity available.
Lite Access' installation technology and proprietary products
extend a network provider's ability to deliver true broadband
connectivity directly to end-users, such as homes, businesses,
government and educational institutions, and emergency response
facilities. Lite Access remains flexible and innovative in its
commitment to provide global clients and partners with the most
cost effective and proven fibre connectivity solutions
available.
*Non-IFRS Measures
EBITDA is a measure not recognized under IFRS. However,
management of Lite Access believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. EBITDA is defined as earnings before interest income,
taxes, depreciation and amortization, stock based compensation,
restructuring costs, impairment charges and other non-recurring
gains or losses. Management believes EBITDA is a useful measure
that facilitates period-to-period operating comparisons.
EBITDA does not have any standardized meanings prescribed by
IFRS and therefore may not be comparable to similar measures
presented by other issuers. Readers are cautioned that EBITDA is
not an alternative to measures determined in accordance with IFRS
and should not, on its own, be construed as indicators of
performance, cash flow or profitability. References to the Lite
Access' EBITDA should be read in conjunction with the financial
statements and management's discussion and analysis of Lite Access
posted on SEDAR (www.sedar.com).
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 financial year ended September 30, 2019 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