Business Editors/High-Tech Writers
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Nov. 27, 2000
World Wireless Communications (AMEX:XWC), which once did contract electronics manufacturing, now finds itself on the cusp of a market opportunity ... the practical application of the Internet to appliances as diverse as vending machines and coffee pots.
As David Singer, chief executive officer of World Wireless Communications and its subsidiary, X-traWeb Inc. explained, "It's not a complete break with the past since the effectiveness of our X-traWeb system relies, in part, on the use of our radio frequency technology to transmit information."
The subsidiary was formed to market the X-traWeb technology, which is an Internet-based product designed for remote monitoring and control of systems and devices. The company developed the world's smallest Web server and paired it with an independent gateway to create a communication link between individuals and appliances.
Singer stepped back to analyze the applications of X-traWeb. "We are currently focusing on vending, quick serve restaurants, asset management, utility and security systems, but we have people coming up to us everyday with a new way X-traWeb can help with their operations."
The company has been working with companies in these key markets to Web-enable equipment and systems in order to monitor and control them over the Internet. The technology provides companies real time data important for maintenance and performance tracking and can save businesses hundreds of thousands of dollars in operating costs.
Singer continued, "We feel we are still building but are starting to see results from partnerships developed earlier in the year." The decision to give up contract manufacturing was not an easy one to make or for its investors to truly grasp.
For example, in the third quarter ended Sept. 30, World Wireless reported revenues of just $376,885, compared with $1,044,511 for the same quarter last year, reflecting the elimination of revenues from manufacturing.
On closer inspection of the financial results, one finds that revenues from its high margin X-traWeb subsidiary, which was zero a year ago, were $114,098 in the quarter and its branded products, 900 MHz radios and antennas at $176,404 were about two and a half times of a year earlier. As Singer ruefully noted, "Transitions don't come cheaply."
As evidenced by the company's increased research and development, selling, general and administrative expenses, which resulted in a loss of $1.6 million in the quarter and $1.8 million for the nine-month period.
The good news, though, is that, "For the three-month period a year ago we had a loss of $2.3 million so that at the same time we are making this transition, we are also reducing our losses fairly dramatically," said Singer.
Thanks to a successful capital raise in the first quarter of 2000, the company's finances are in a strong position. As of Sept. 30, current assets were at $6.8 million with current liabilities at only $535,274. At Dec. 31, 1999, current assets were about $2 million and liabilities were an uncomfortable $6 million.
Outside of what the financial reports show, X-traWeb had several major accomplishments within the three months ended Sept. 30 including:
-- Signing an agreement with TTK Wireless Telecom Inc., which is a leading provider of services and customer solutions to the wireless industry, to Web-enable critical elements at cell tower sites with remote monitoring and control capabilities. -- Providing a variety of Web-enabled services including automated meter reading, energy management, outage alarms, security alarm and related technologies to Cooperative ConNEXTions, a Touchstone Energy partner representing 150 independent cooperative utilities. -- Developing an alliance with a leading food service equipment manufacturer to roll out a pilot intelligent kitchen program to six major national restaurant chains. -- Beginning a pilot program to Web-enable instrumentation for facilities management of a major automobile manufacturer in order to improve service, reduce energy and reduce management costs for major environmental equipment. -- Entering into an alliance with a major control system provider to national retail chains to embed the X-traWeb technology into its various technologies including kitchen equipment and HVAC. -- Developing a pilot program with a large regional cooperative to provide wireless automated meter reading to remote and industrial customers. -- Announcing its entree into the home automation market with a product called MAX.
At the recent COMDEX trade show in Las Vegas, the big daddy of all consumer electronics shows, X-traWeb was the buzz. Simply put, X-traWeb opened the doors for consumers to the home automation market with its product called MAX and found that they were hungry for the wireless home. No other company had a complete product available.
But, not only does Singer have to convince potential customers of the value of X-traWeb, he also has to sell his own shareholders. Regrettably, stock market disenchantment with "Internet" companies has not discriminated between the real potential winners and losers.
"We've taken the so-called 'new economy' and given it both new economy and old economy applications, which clearly positions us for exciting, sustainable real long term growth and profitability," said Singer.
"Once companies see how the X-traWeb technology works and how it will better their business operations both functionally and financially, they become eager to implement the technology. It's like a flood gate opening -- they begin thinking about very specific needs and how X-traWeb can provide the solution."
Greenwood Village, Colo.-based X-traWeb Inc. was founded in 1999 to develop and market the X-traWeb system -- an Internet-based product designed for remote monitoring and control of systems and devices. X-traWeb's many applications include security systems, vending machines, asset management, quick service restaurants and utility meters.
More information on X-traWeb is available at www.x-traweb.com. X-traWeb Inc. is a subsidiary of World Wireless Communications Inc., a leading developer of wireless and Internet systems, technology and products. World Wireless also focuses on spectrum radios in the 900 MHz and 2.4 GHz bands. For more information, please visit the company's Web site, www.worldwireless.com.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties.
Such forward-looking statements are made based on management's belief as well as the assumptions made by, and information currently available to, management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.
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