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NewsBot Date: August 11, 2005 10:42:47 AM
UTYW News Research Unity Wireless Corp, Stock Trading Message Board
Unity Wireless Reports Results for the Second Quarter 2005
Gross Margins Reach 29 Percent for Second Quarter; Revenue Up 30 Percent for 6-Month Period
BURNABY, British Columbia, Aug. 11, 2005 (PRIMEZONE) -- Unity Wireless Corporation (OTCBB:UTYW), a developer of integrated wireless subsystems, power amplifiers and coverage enhancement solutions, reported today summary financial results for the three and six-month periods ended June 30, 2005.
Revenues for the second quarter of 2005 were $1,716,888 compared to $2,063,198 in the same period in 2004. The gross margin of $492,862, or 28.7 percent, for the second quarter of 2005 represented an increase in gross margin from $229,224, or 11.1 percent, for the second quarter of 2004. Loss for the second quarter of 2005 was $1,365,404 compared to $757,823 for the same period in 2004. Net of stock-based compensation and other non-cash items of $749,950 and $197,461, respectively, loss for the second quarter of 2005 was $615,454 compared to $560,362 for the same period in 2004.
Revenues for the first six-months of 2005 were $3,684,458, up 30 percent, compared to $2,823,580 in the same period in 2004. The gross margin of $837,749, or 22.7 percent of net sales, for the first half of 2005 represented an increase from a gross margin of $496,264, or 17.6 percent of net sales, for the first half of 2004. Loss for the first six-months of 2005 was $2,543,579 compared to $1,420,725 for the same period in 2004. Net of stock based compensation and other non-cash items of $1,171,785 and $541,223, respectively, loss for the first six-months of 2005 was $1,371,794 compared to $879,502 for the same period in 2004. The major contributor to the increased loss was a 193 percent increase in research in development expenses, incurred mostly in the first quarter, as the Company accelerated new product development for time-sensitive customer opportunities. These expenditures raised research and development expenses above typical levels, and included costs to upgrade lab equipment and simulation tools, to increase outsourced contract engineering assignments and to purchase prototyping materials.
Ilan Kenig, President and CEO of Unity Wireless stated, "We have been focusing on initiatives to reduce our costs and improve efficiencies in our manufacturing and testing processes and are proud to report that these initiatives have significantly contributed to our third sequential, quarter-over-quarter improvement in gross margins. If we are as successful at driving top line revenue growth, continue to capitalize on current product opportunities, and are able to maintain current levels of operating expenses and gross margins we will ultimately be rewarded by improved bottom line performance and profitability."
Unity Wireless Receives Power Amplifier Order for Customer's New 450MHz Base Station
BURNABY, British Columbia, Aug. 8, 2005 (PRIMEZONE) -- Unity Wireless Corporation (OTCBB:UTYW), a developer of integrated wireless subsystems, power amplifiers and coverage enhancement solutions, announced today that it has received a US$75,000 order for a newly developed power amplifier solution from an existing US-based customer for deployment in their new base station product configuration at 450 MHz.
Power amplifiers used in this customer's base station are comprised of both hardware and software developed by Unity Wireless to provide a reliable, high performance and completely integrated solution that integrates easily into the customer's base station design.
Ilan Kenig, President and CEO of Unity Wireless, stated, "This order represents the beginning of a new deployment by this customer, whose project appears to be gaining momentum in several countries where we see significant market opportunities for 3G (third generation) wireless networks in the 450 MHz frequency band. As with many of our products, there is the potential for significantly larger orders if our customer makes sizable sales of its wireless infrastructure solution to end users. We are very fortunate to have established a relationship with this client over the last couple of years and look forward to supporting their new base station product."
Unity Wireless Completes Development and Implementation of Automated Test Equipment
Technology expected to increase gross margins and production capacity at head office
BURNABY, British Columbia, Aug. 3, 2005 (PRIMEZONE) -- Unity Wireless Corporation (OTCBB:UTYW), a developer of integrated wireless subsystems, power amplifiers and coverage enhancement solutions, announced today that it has completed the development and implementation of new, state-of-the-art, automated test equipment at the Company's headquarters. The Company expects that utilizing the new equipment will increase gross margins and production capacity.
The process of manufacturing many of the wireless subsystems sold by Unity Wireless involves a complex testing procedure prior to delivery to the customer. This work is not handled by the Company's contract manufacturer and is completed at the Company's headquarters. By employing automated testing stations that are both constantly monitored and calibrated, many steps in this test procedure are now consolidated into one. This automation can significantly reduce the time required to physically test each unit and directly impacts both the cost per unit as well as production capacity.
Ilan Kenig, President and CEO of Unity Wireless, stated, "We began a pilot program with this equipment earlier this year and were impressed with its efficiency in providing rapid, consistent and well documented test results. As we anticipate that many of the products we have qualified with existing customers will ship in greater volume, we expect that our new automated test equipment will have a positive effect on our business in both quality and financial terms."
Photos of the new automated testing equipment can be found on our website at www.unitywireless.com and by selecting the "Facility Images" icon at the bottom of the home page.
Unity Wireless Ships CDMA 450 Coverage Enhancement Solution for 3G Cellular Operator Field Trial in Southeast Asia
BURNABY, British Columbia, July 29, 2005 (PRIMEZONE) -- Unity Wireless Corporation (OTCBB:UTYW), a developer of integrated wireless subsystems, power amplifiers and coverage enhancement solutions, announced today that it shipped a comprehensive coverage enhancement solution to a Southeast Asian wireless 3G network operator for a live CDMA 450MHz TMA system field trial.
The coverage enhancement solution kit from Unity Wireless will help this 3G network operator to enhance the uplink performance of its base station infrastructure. The kit includes tower mounted amplifiers (TMAs) and related accessories that help amplify incoming signals from cell phones, data cards and other subscriber devices. This improvement can lead to quality of service benefits including reduced bit error rates and reduced dropped or uncompleted calls. The improvement can also increase the "talk time" of subscriber devices, since these devices often consume less power to transmit their signals to the base station as a result of extra amplification of the incoming signal at the cell site.
Ilan Kenig, President and CEO of Unity Wireless, stated, "We are pleased to report this field trial, which if successful could represent significant revenues for our coverage solutions group. CDMA 450 MHz networks were once viewed as a niche market, but are now an attractive opportunity because of the growing number of operators deploying these networks."
Unity Wireless Receives US$320,000 Purchase Order for Customer's New Business Opportunity
BURNABY, British Columbia, July 25, 2005 (PRIMEZONE) -- Unity Wireless Corporation (OTCBB:UTYW), a developer of integrated wireless subsystems, power amplifiers, and coverage enhancement solutions, announced today that it received a US$320,000 purchase order for power amplifiers from a North American-based tier-1 OEM (original equipment manufacturer) of wireless networks and telecommunications equipment.
The power amplifiers ordered by this customer are the same model as power amplifiers Unity Wireless previously sold to this customer for incorporation into their CDMA base station, but are for a new end-user of this customer's CDMA base station product and represents a new business opportunity for the customer. The previous sales of this product occurred in late 2004, when the customer bought approximately US$300,000 for a field trial, and in February 2005, when the customer bought approximately US$800,000 for their initial commercial deployment of CDMA base stations that incorporate product from Unity Wireless.
Ilan Kenig, president and CEO of Unity Wireless, stated, "This is another example of a common sales cycle in our industry and illustrates how successful deployment by a customer can increase our revenue potential as they create new business opportunities in multiple markets for their products. Including the order announced today, this customer has now purchased and ordered approximately US$1.5 million of product for field trials and early commercial deployment. We believe that this product is very early in its life cycle and that revenue opportunities should continue to grow significantly."
Unity Wireless has since qualified three additional products with this customer. All four are now generating revenue.
About Unity Wireless www.unitywireless.com
Unity Wireless is an ISO 9001:2000 certified developer of RF (radio frequency) power amplifiers, components, integrated front-ends, and coverage enhancement solutions for wireless communications networks. Our products are an integral part of the base station and repeater infrastructure that comprise the backbone of wireless communications networks around the world. From analog cellular to 3G mobile and fixed wireless applications from 450 MHz to 3.5 GHz, Unity Wireless products deliver enhanced efficiency and performance with field-proven quality and reliability in tens of thousands of base stations and repeaters around the world.
Forward Looking Statements
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "feel," "plan," "anticipate," "should," and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation, inability to raise the funds necessary for the Company's continued operations, changes in external market factors including the economy and other risks and uncertainties indicated in the Company's most recent SEC filing on form SB-2. Actual results could differ materially from the results referred to in the forward-looking statements.
CONTACT:
Unity Wireless
Dallas Pretty
(604) 267-2736
dallasp@unitywireless.com
Osprey Partners
Mike Mulshine
(732) 292-0982
osprey57@optonline.net
