Wi2Wi Corporation Release of Audited Consolidated Results for Year Ending December 31, 2014

Toronto, Ontario (FSCwire) - Wi2Wi Corporation ("Wi2Wi" or the "Company") is pleased to announce its audited consolidated financial results for the year ending December 31, 2014    

Wi2Wi is a vertically integrated manufacturer provide connectivity solutions, Precision Timing Devices, Frequency Control Products and Microwave Filters to the global market. Wi2Wi’s miniaturized Wireless System-in-Package (SIP) connectivity Solutions are well accepted in the global market for Machine-to-Machine (M2M) and Internet of Things (IOT) and portable device embedded applications worldwide.  Acquisition of net operating assets of Precision Devices Inc. (“PD”), in November 2014 enabled Wi2Wi to expand its product lines by adding Precision Timing Devices and Frequency Controllers to its existing product offering.  Precision Device’s, rugged, robust and reliable  High end Crystals and Oscillators, Crystal Filters, RF and Microwave Filters are widely used and well recognised in the premium markets; Industrial, Avionics, Space, Medical and Defense.

Revenue

Revenues for the three months ended December 31, 2014 and 2013 were $3,348 and $310, respectively. Revenues from the acquisition of PD (“Middleton”), for two months ending December 31, 2014 was $1,590, while the Company’s San Jose location (“San Jose”) amounted to $1,758, compared to $310 in the fourth quarter of 2013.  Revenue for the year ended December 31, 2014 and 2013 were $8,047 and $3,748, respectively. Revenues for San Jose increased by 72%.  The Company had shippable backlog of approximately $3 million for the fourth quarter of 2014.  With the addition of Middleton the Company continues to build its backlog currently in the region of $4.7 million. 

Gross Profit  

Cost of revenues consists of the costs of parts; costs incurred with contract manufacturers to assemble and test the Company’s products, as well as the direct and indirect costs incurred to control and test the in-house and outsourced manufacturing and supply chain.

Gross profit for the fourth quarter ended December 31, 2014 and 2013 were $965 (gross margin 29%) and $109 (gross margin-35%), respectively.  The reduction in gross margin is primarily due to Middleton location, where the products are manufactured in-house, and very labour intensive.  The gross margin at the San Jose location continue to improve 52.5%, compared to 35% in same quarter in 2013, an increase in gross profit of 48.5%.  Company’s control over costs continue to improve the gross margin yield, and we are working hard to implement controls over the Middleton, in order to bring the margins to more acceptable levels.  The process will take some time to implement and initial results are very favorable.

Gross profit for the year ended December 31, 2014 and December 31, 2013 were $3,360 and $1,470 respectively.  Gross profits increased by 127% for the year ended December 31, 2014, compared to the same period in 2013.  The increase in revenue year over year was a significant reason for the improvement, plus the effect of the focus to improve the gross margin on sales to customers.

Precision Devices Inc. (“PD”) description

In 2014, Wi2Wi acquired the manufacturing plant, inventory, and net current assets related to operations of Precision Devices, a company based in Middleton, Wisconsin.  Precision Devices, is a global supplier of timing devices and frequency control devices.  Their core business consist of extremely high-end, standard and highly customizable, crystals, crystal filters and oscillators for complex Radio, RF/Microwave, GPS, Instrumentation for the applications in the  Avionics, space, Medical, Infrastructure and Defense markets. PD also manufactures low-cost, commercial grade crystals and oscillators for competitive consumer applications. In addition to the manufacturing capability, PD also has fully functional high end reliability test lab, production testing and back end operations in house.   The acquisition is very strategic for the Company in that we have now access to certain markets such as avionics, space and defense which would have taken the Company significant amount of time and money to develop. The acquisition also brings tier one customers where the company did not have access prior to the acquisition.  The acquisition of the manufacturing facility, which also includes the administrative offices, and sales force allows the Company to significantly streamline its operations and reduce the overhead structure.

 “We have had a very eventful year, where we have seen the Wi2Wi increase its sales, restructured the operations to reduce overheads and the acquisition of the net operating assets and the product lines of Precision Devices will help grow the company in the coming years”, said Mr. Zachariah Mathews, President CEO and Interim Chairman of the Company

For further information, please contact:

Zachariah Mathews

President and Chief Executive Officer

Interim Chairman

408 416 4202

zach@wi2wi.com

Forward-Looking Statements:  This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). 

This news release contains “forward-looking statements” within the meaning of applicable securities laws relating to, among other things, the Proposed Transaction. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. Completion of the Proposed Transaction described herein is dependent on a number of factors and is subject to a number of risks and uncertainties, and it is not certain that the Proposed Transaction will be completed. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Com0pany`s or Wi2Wi’s business, general business, economic and competitive uncertainties and delay or failure to receive board, shareholder or regulatory approvals.

Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.  All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Wi2WiMay62015.pdf

Source: Wi2Wi Corporation (TSX Venture:YTY) http://www.wi2wi.com/

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