TORONTO, ON / FSCwire / August 25, 2016 / Wi2Wi Corporation ("Wi2Wi" or the "Company")(TSX-V:YTY) announces results for the quarter ending June 30, 2016..
The decrease in revenues for the three month period ending June 30, 2016 as compared to the same period in 2015 was due to: - The Shipment of a number of 2014 backвЂђorders during the first and second quarters of 2015. - The Company has not entered the low margin market for Wireless Connectivity products, which is well supported by large manufacturers with capacity to manufacture in large volumes. - The company decided to fully exit from extremely low margin business (from) within Frequency Control Devices. - Gross margin as a percentage of revenue has decreased mainly due to the decrease in the revenue from Wireless Connectivity products. A number of Connectivity products had reached end of life.
Investment in R&D: The Company commenced a modest product development program. The current investment in R&D is anticipated to positively impact operations in late 2017. A number of potential customers are in the process of evaluating the Company's new products released in the first half of 2016. However, the Company does not recognize a design win until the customer certification process is fully complete. These products will take in excess of 18 months to yield meaningful revenue. Historically, the useful life of Connectivity products are in excess of 8 years, and in excess of 15 years for Frequency Control and Timing Devices. The Company is actively looking to raise capital to expedite new product development for both Wireless Connectivity Devices and Frequency Control Devices.
"Lack of sufficient investment capital has restricted the Company's growth, especially affecting new product development in Wireless Connectivity. The Company's efforts in 2016 will be focused on stabilizing the business, increasing gross margins, winning back customer confidence, and promoting new products that were announced recently, in addition to developing new products, specifically targeting IoT applications. The company is actively looking to raise growth capital. " said Mr. Zachariah Mathews, President & CEO of the Company.
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President and Chief Executive Officer