LEAGUE CITY, TX(eTeligis Inc.)
LEAGUE CITY, TX, United States, via ETELIGIS INC., 08/20/2014 -
- ERF Wireless Inc. (OTCQB: ERFB), a leading provider of
enterprise-class wireless and broadband products and services,
announced today that the Company has filed its Form 10-Q with the
Securities and Exchange Commission reporting results for the
quarter ended June 30, 2014.
The Company's revenues and gross profits increased in the second
quarter of 2014 as compared to the prior year same quarter ended
June 30, 2013. Financial highlights are as follows:
- The Company reported revenues of $1,635,000 for the quarter
ended June 30, 2014, as compared to revenues of $1,563,000 for the
quarter ended June 30, 2013; an increase of $72,000 or 5%.
- The Company reported gross profit of $696,000 for the quarter
ended June 30, 2014, compared to $564,000 for the quarter ended
June 30, 2013, an increase of $132,000 or 23%.
- The Company reported total comprehensive loss of $988,000 for
the quarter ended June 30, 2014, as compared to a total
comprehensive loss of $2,256,000 for the quarter ended June 30,
2013; a decrease of $1,268,000 or 56%.
- The Company's Energy Broadband, Inc., subsidiary reported
revenues of $866,000 for the quarter ended June 30, 2014, as
compared to revenues of $809,000 for the quarter ended June 30,
2013; an increase of $57,000 or 7%.
- The Company reported a decrease of $656,000 or 34% in
operating expenses in the quarter ended June 30, 2014, as compared
to the quarter ended June 30, 2013. The decrease is primarily
related to lower employment expenses of $319,000 associated with a
headcount decrease of 23 employees and approximately $241,000 in
lower legal and professional fees associated with the concluded
arbitration proceedings with Schlumberger pertaining to disputes to
resolve certain financial issues contained in the 2009 exclusive
reseller agreement.
- The Company reduced its burn rate as measured by Earnings
Before Interest Taxes Depreciation and Amortization ("EBITDA") to a
loss or burn rate of $132,000 for the quarter ended June 30, 2014,
as compared to a EBITDA loss or burn rate of $860,000 for the
quarter ended June 30, 2013; a decrease of $728,000 or 85%.
- The Company reported Net Cash used by Operating Activities of
($60,000) for the six months ended June 30, 2014, as compared to
Net Cash used by Operating Activities of ($1,675,000) for the six
months ended June 30, 2013; a decrease of $1,615,000.
R. Greg Smith, CFO of ERF Wireless, commented, "Our
second-quarter and six-months results for the period ended June 30,
2014, continue to reflect the decisive actions taken to reduce our
operating expenses in early 2014, that have resulted in a decrease
of $656,000 or 34% in operating expenses in the second quarter
ended June 30, 2014, as compared to the quarter ended June 30,
2013, and a reduction of $1,321,000 in operating expenses in the
first half of 2014 as compared to the first half of 2013. This
reduction is the equivalent of $2.6 million reduction on an
annualized basis and compares to an overall EBITDA loss or burn
rate of $2,583,000 for Calendar 2013. With this substantial cost
reduction in place, coupled with increasing demand for our Energy
Broadband communication services already occurring in the second
half of 2014, we continue to make good progress on executing on our
restructuring plan aimed at reaching positive cash flow from
operations in calendar 2014. We are aggressively focused on driving
market share increases for our products and services and associated
revenue growth in this primary objective to reach profitability and
positive cash flow from operations."
Dr. H. Dean Cubley, CEO of ERF Wireless, commented, "With our
second half of 2014 off to a good start, we anticipate that, with
continued expansion of the U.S. oil and gas exploration and
production in 2014, we will continue to make solid progress on
reaching these planned objectives. We have a number of specific key
objectives already in process for 2014 that we believe will be
extremely beneficial to our shareholders. Below is a summary of a
number of these new objectives that we are already executing on
that are intended to restore the value to our common stock and move
the company forward into profitability."
Future Plans
It is management's goal to build shareholder value through:
(1) certain divestitures of non-core business units and
corresponding use of proceeds for debt reduction and
consolidation
(2) internal growth of its core Energy Broadband and Enterprise
Networks business units
(3) an aggressive acquisition strategy of certain profitable
competitors and complementary businesses, and
(4) a focused approach to expansion and operating capital
acquisition in conjunction with a national market listing.
In addition to debt reduction plans, management has been active
over the last several months positioning the company to capitalize
on the renewed exponential growth taking place in the wireless
broadband oil and gas sector. The application of new technologies
and discoveries taking place in this sector has created increased
demand for wireless broadband access and services. This positioning
has already put ERF Wireless at the forefront of this demand
resulting in significant opportunities for internal revenue that
have already begun with the current addition of multiple new
customers and other growth under new contracts already beginning
with the second half of 2014. To complement this internal growth
and further capitalize on the expansion within the wireless
broadband industry, ERF Wireless has also begun an aggressive
acquisition strategy in the second half of 2014. To date,
management has identified multiple qualified acquisition candidates
that would not only add revenues and accretive positive cash flow
to the company but would also expand its footprint within the
industry substantially. Further details and information on these
endeavors will be forthcoming as contracts and agreements
materialize. In addition, in a separate release this week the
Company will provide the details and schedule of a shareholder
conference call to be conducted during the next ten days.
About ERF Wireless
ERF 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, www.energybroadband.com and
www.erfwireless.net or call 281-538-2101. (ERFBG)
Forward-Looking Information
The information in this release may contain forward-looking
statements relating to anticipated or expected events, activities,
trends or results. Forward-looking statements, can be identified by
the use of forward looking terminology such as "believes,"
"suggests," "expects," "may," "goal," "estimates," "should,"
"likelihood," "plans," "targets," "intends," "could," or
"anticipates," or the negative thereof, or other variations
thereon, or comparable terminology, or by discussions of strategy
or objectives. Because forward-looking statements relate to matters
that have not yet occurred, these statements are inherently subject
to risks and uncertainties. Forward-looking statements in this
release include, without limitation, the Company's expectations of
continued expansion into oil and gas markets and of our terrestrial
broadband networks, along with other performance results. These
statements are made to provide the public with management's current
assessment of our business, and it should not be assumed that that
the forward looking statements will prove to be correct. Security
holders are cautioned that such forward-looking statements involve
risks and uncertainties. The forward-looking statements contained
in this release only as of the date hereof, and we expressly
disclaim any obligation or undertaking to report any updates or
revisions to any such statement to reflect any change in
management's expectations or any change in events, conditions or
circumstances on which any such statement is based. Certain factors
may cause results to differ materially from those anticipated by
some of the statements made in this release. Please carefully
review our filings with the Securities and Exchange Commission as
we have identified many risk factors that impact our business
plan.
CONTACT:
ERF Wireless Inc.
Clareen O'Quinn
281-538-2101 ext. 113
coquinn@erfwireless.com
Financial Relations Firm:
Mirador Consulting LLC
561-989-3600
lbigbidask@aol.com
SOURCE: ERF Wireless Inc.
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