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Published on August 15th, 2011 | by Alexis Argent

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Tranzeo Provides Second Quarter 2011 Results

TranzeoTranzeo Wireless Technologies Inc., a leading producer of high-speed wireless broadband communication systems, today announced its financial results for the second quarter 2011.

Financial Results:

  • Revenue was $2.1 million compared with $4.5 million year over year.
  • Gross profit was $0.6 million compared with $0.9 million with % margins at 30% compared to 20% a year ago.
  • EBITDA (excluding stock based compensation) was a loss of $1.4 million compared to a loss of $2.0 million for 2010. The decrease in the loss was primarily due to the reduction of operating expenses in the Aperto subsidiary.

Consolidated Balance Sheets

  June 30, 2011 December 31,
Assets (Unaudited) 2010
Current assets:    
  Cash $ 12,559 $ 72,066
  Accounts receivable 1,310,827 1,000,754
  Prepaid expenses 345,397 388,936
  Inventory 4,375,594 4,754,634
  6,044,377 6,216,390
Property and equipment 9,262,367 9,812,338
  $ 15,306,744 $ 16,028,728
     
Liabilities and Shareholders’ Equity    
Current liabilities:    
  Accounts payable and accrued liabilities $ 8,807,574 $ 7,768,160
  Due to related party 1,020,388 1,179,214
  Current portion of capital lease obligation 32,439 51,310
  Short term debt 660,500 764,500
  10,520,901 9,763,184
Capital lease obligation 59,868 84,972
  10,580,769 9,848,156
     
Shareholders’ equity:    
  Share capital 32,002,695 31,779,583
  Shares issuable 1,428,364 1,699,787
  Reserve 5,219,267 2,937,089
  Retained deficit (33,924,351) (30,235,887)
  4,725,975 6,180,572
  $ 15,306,744 $ 16,028,728

Consolidated Statements of Operations and Deficit
(Unaudited)

  Three Months Ended Six Months Ended
  June 30 June 30
  2011 2010 2011 2010
         
Sales $ 2,066,960 $ 4,452,385 $ 4,457,569 $ 7,813,954
Cost of goods sold 1,441,358 3,558,069 3,002,942 6,035,747
Gross Profit 625,602 894,316 1,454,627 1,778,207
         
         
Expenses:        
  Sales and marketing 542,297 833,373 1,056,165 1,213,820
  Research and development 542,979 895,845 1,152,855 1,398,765
  General and administrative 889,520 1,082,279 1,771,562 1,856,423
  Share based compensation 139,821 149,304 478,881 866,453
  Amortization 270,117 328,309 548,892 648,889
  2,384,734 3,289,110 5,008,355 5,984,350
         
Loss from operations (1,759,132) (2,394,794) (3,553,728) (4,206,143)
         
Other expenses (income):        
  Acquisition costs 514,623 514,623
  Impairment 190,501 190,501
  Interest expense 59,129 52,145 165,603 90,038
  Foreign exchange loss (gain) 31,365 83,730 (30,867) 148,929
  90,494 840,999 134,736 944,091
         
Net loss (1,849,626) (3,235,793) (3,688,464) (5,150,234)
         
Deficit, beginning of period (32,074,725) (16,342,201) (30,235,887) (14,427,760)
         
Deficit, end of period $ (33,924,351) $ (19,577,994) $ (33,924,351) $ (19,577,994)
         
         
Loss per share for the period:        
  Basic $ (0.04) $ (0.07) $ (0.07) $ (0.02)
  Diluted $ (0.04) $ (0.06) $ (0.07) $ (0.02)
         
Weighted average number of shares – basic 50,047,432 48,656,806 54,826,222 27,454,035

Consolidated Statements of Cash Flows
(Unaudited)

  Three Months Ended Six Months Ended
  June 30 June 30
  2011 2010 2011 2010
Cash flows from operating activities:        
Net loss for the period $ (1,849,626) $ (3,235,794) $ (3,688,464) $ (5,150,234)
Adjustments to reconcile net earnings to net cash from operating activities:        
  Amortization 276,776 328,309 548,892 648,889
  Impairment 190,501 190,501
  Stock based compensation 139,821 149,304 478,881 866,453
  (1,433,029) (2,567,680) (2,660,690) (3,444,391)
Changes in working capital assets and liabilities:        
  Prepaid expenses 8,292 25,769 43,538 (327,169)
  Accounts receivable (9,248) 858,312 (310,074) 313,168
  Accounts payable and accrued liabilities 1,119,962 1,541,716 1,039,413 1,091,004
  Inventories (98,861) (356,806) 379,040 44,979
Net cash flows used in operating activities (412,884) (498,688) (1,508,773) (2,322,409)
         
Cash flows from investing activities:        
  Additions to property, plant and equipment (2,049) (462,467) (5,579) (542,739)
  Technology rights (250,063) (250,063)
  Sales of Technology Asset 606,500 606,500
Net cash flows used in investing activities (2,049) (106,030) (5,579) (186,302)
         
Cash flows from financing activities:        
Proceeds from (repayment of) short term note payable 146,000 (104,000) 164,500
Proceeds from related parties 82,542 (150,000)
Repayment of capital leases obligations (16,361) (127,440) (43,976) (326,820)
Repayment of equipment loan (4,720) (9,440)
Repayment of related party loan (158,825)
Issuance of common shares 556,487 1,754,986 1,086,179
Net cash flows from financing activities 212,181 424,327 1,448,185 764,419
         
Net decrease in cash (202,752) (180,391) (59,508) (1,744,292)
         
Cash, beginning of period 215,311 273,931 72,067 1,837,832
         
Cash, end of period $ 12,559 $ 93,540 $ 12,559

$ 93,540

About Tranzeo Wireless Technologies Inc:

Tranzeo Wireless Technologies Inc. (TSX:TZT) leads the wireless broadband industry as a premier manufacturer of high-performance wireless network equipment that allows communities and businesses to communicate without boundaries. Tranzeo’s full spectrum of point-to-point and point-to-multipoint radios, WiMAX equipment, and mesh network solutions are designed for wireless internet service providers, governments, campuses, military, carriers, enterprise customers, and systems integrators around the globe. Headquartered in British Columbia, Canada, Tranzeo also has offices in San Diego, California, San Jose, California, and Indonesia.

For more information please visit out Tranzeo Products Page


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