Click here to close now.


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, and 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.

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
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...