Welcome!

News Feed Item

ERF Wireless Reports 1st Quarter 2014 Results

Net Cash Used by Operating Activities Is Reduced by $1,108,000 as Compared to the Same Quarter Last Year

LEAGUE CITY, TX -- (Marketwired) -- 05/22/14 -- 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 March 31, 2014.

The Company's revenues and gross profits declined slightly in the first quarter of 2014 as compared to the prior year same quarter ended March 31, 2013. Financial highlights are as follows:

  • The Company reported revenues of $1,592,000 for the quarter ended March 31, 2014, as compared to revenues of $1,913,000 for the quarter ended March 31, 2013; a decrease of $321,000 or 17%.
  • The Company reported gross profit of $660,000 for the quarter ended March 31, 2014, compared to $889,000 for the quarter ended March 31, 2013, a decrease of $229,000 or 26%.
  • The Company reported total comprehensive loss of $1,050,000 for the quarter ended March 31, 2014, as compared to a total comprehensive loss of $1,656,000 for the quarter ended March 31, 2013; a decrease of $606,000 or 37%.
  • The Company's Energy Broadband, Inc. subsidiary reported revenues of $889,000 for the quarter ended March 31, 2014, as compared to revenues of $1,205,000 for the quarter ended March 31, 2013; a decrease of $316,000 or 26%.
  • The Company reported a decrease of $654,000 or 32% in operating expenses in the quarter ended March 31, 2014, as compared to the quarter ended March 31, 2013. The decrease is primarily related to lower employment expenses of $390,000 associated with a headcount decrease of 17 employees and approximately $235,000 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 $269,000 for the quarter ended March 31, 2014, as compared to a EBITDA loss or burn rate of $647,000 for the quarter ended March 31, 2013, a decrease of $378,000 or 58%.
  • The Company reported Net Cash used by Operating Activities of ($1,000) for the quarter ended March 31, 2014 as compared to Net Cash used by Operating Activities of ($1,109,000) for the quarter ended March 31, 2013, a decrease of $1,108,000.

R. Greg Smith, CFO of ERF Wireless, commented, "We initiated some decisive actions aimed at reducing our operating expenses in the first quarter ended March 31, 2014, that resulted in a decrease of $654,000 or 32% in operating expenses as compared to the quarter ended March 31, 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 increased demand for our Energy Broadband communication services already occurring in the second quarter of 2014, we continue to make good progress on executing on our restructuring plan aimed at reaching profitability and 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 quarter 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 planned for 2014 that we believe will be extremely beneficial to our shareholders. Below is a summary of a number of these new objectives 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 2nd quarter 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 2nd quarter 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.

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.

Contacts:

ERF Wireless Inc.
Clareen O'Quinn
281-538-2101 ext. 113
[email protected]

Financial Relations Firm:
Mirador Consulting LLC
561-989-3600
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
Today traditional IT approaches leverage well-architected compute/networking domains to control what applications can access what data, and how. DevOps includes rapid application development/deployment leveraging concepts like containerization, third-party sourced applications and databases. Such applications need access to production data for its test and iteration cycles. Data Security? That sounds like a roadblock to DevOps vs. protecting the crown jewels to those in IT.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
Elon Musk is among the notable industry figures who worries about the power of AI to destroy rather than help society. Mark Zuckerberg, on the other hand, embraces all that is going on. AI is most powerful when deployed across the vast networks being built for Internets of Things in the manufacturing, transportation and logistics, retail, healthcare, government and other sectors. Is AI transforming IoT for the good or the bad? Do we need to worry about its potential destructive power? Or will we...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
The last two years has seen discussions about cloud computing evolve from the public / private / hybrid split to the reality that most enterprises will be creating a complex, multi-cloud strategy. Companies are wary of committing all of their resources to a single cloud, and instead are choosing to spread the risk – and the benefits – of cloud computing across multiple providers and internal infrastructures, as they follow their business needs. Will this approach be successful? How large is the ...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...