WINNIPEG – Last week, Craig Wireless Systems released its second quarter financial statements the second quarter of fiscal 2008, ended February 29th.
The previous story which appeared on Cartt.ca contained erroneous information concerning the level of the company’s quarterly loss. Below is the correct information. Cartt.ca regrets the errors.
Revenue for the second quarter ended February 29, 2008, was $482,745, with a loss per share of $0.02 and a net loss of $1.175 million, a 17% increase over Q2 2007 for the growing company. The corporation also noted it is transitioning its focus away from its current services of fixed-wireless digital television distribution business to a new suite of services that are focused on portable and mobile applications utilizing WiMAX-enabled technology.
The second quarter ended February 29, 2008 is the second quarter of the corporation following its going public transaction that closed on September 1, 2007. Significant events during the second quarter included:
* The Corporation participated in a spectrum auction in New Zealand and was successful in winning spectrum management rights to use 40 MHz of spectrum, in two separate lots, in the 2500-2520 and 2620-2640 MHz bands. The purchase of spectrum in New Zealand in the second quarter augments the Corporation’s purchase of a license to use 50 MHz of 2500-2690 MHz spectrum in Norway during the first quarter. Both are national licenses and will enable the Company to provide full-mobility WiMAX network services to nearly 9 million people in those combined markets.
* The Corporation finalized and entered into an agreement with Alcatel- Lucent Canada Inc. for the supply of equipment for the deployment of WiMAX sites in the Coachella Valley, California.
* Mr. William Fraser, former President and Chief Executive Officer of Manitoba Telecom Services Inc., Mr. Barry Reiter, lawyer and senior partner in the Bennett Jones LLP Toronto office and Mr. David Coriat, Executive Vice-President and Chief Financial Officer and Director of Slaight Communications Ltd., were appointed to the board of directors of Craig Wireless.
* Realized revenue was impacted by the Corporation’s change of primary equipment suppliers in Greece during the prior quarter as previously disclosed. Motorola Inc., the Corporation’s new supplier, has provided equipment and services to the Corporation to meet the deployment requirements under a wholesale agreement with a local telephone operator, Lannet Communications S.A. ("Lannet"), for the marketing of WiMAX services to consumers. The agreement with Lannet has been amended to accommodate the change in suppliers. These changes impacted the realized revenue from Lannet for the six months ended February 29, 2008 and resulted in an adjustment to the Corporation’s revenue expectations for Fiscal 2008, says Craig’s press release.
