5G Wireless Solutions, Inc. Reports Semi-Annual Financial Highlights
MARINA DEL REY, Calif. – Oct. 24, 2005 – 5G Wireless Solutions, Inc., a wholly-owned subsidiary of 5G Wireless Communications, Inc. (OTCBB:FGWC - News) and an emerging leader in the wireless broadband industry, today released financial highlights for the first half of fiscal year 2005.
For the six months ending June 30, 2005, the company declared gross sales of $1,701,141. The positive sales trend is expected to continue as more university campuses look to upgrade their infrastructures, municipal market demands for Wi-Fi HotZones(TM) increase, and other campus-type environments seeking low-cost broadband wireless solutions explore their options.
Selling, general and administrative expenses were $607,189, or 36% of net revenue. These expenses primarily consist of labor and related personnel expenses, commissions and office-related expenses. Since January 1, 2005, management has trimmed headcount, terminated most consulting arrangements which were not revenue-related, cut the number of legal firms being used and reduced all other general and administrative expenses through the implementation of rigorous cost controls. The company believes these trends will continue.
Research and development expenses were $127,295, or 7% of net revenue. The company continues to focus its investment resources toward the ongoing development of new wireless equipment, as well as the implementation of new features and enhancements to its existing products.
Operating losses were stated at ($4,532), less than 1/2 of 1% of net revenue. As sales continue to increase incrementally, and operating expenses decline, management anticipates that 5G Wireless will report positive operating income for the year ending December 31, 2005.
"We feel these numbers represent a positive achievement, and we want to communicate this to our shareholders," stated Jerry Dix, CEO of 5G Wireless Communications. "For a company to achieve this type of growth within its first full year of active marketing is evidence of success on many fronts. Our marketing group continues to do its job of getting the word out to create brand awareness and credibility of our 'Access/Not Excess' message by leveraging the success of some of our key installations. We're targeting not only our core university and municipal markets, but also a growing set of channel marketing partners. Our sales team continues to expand its efforts and is in the process of closing many new opportunities. Our engineering and operations teams continue to refine our product offerings with the strictest of quality controls insuring high quality products and satisfied customers. And we will continue to explore other promising vertical segments, including healthcare, recreation and international projects. It's been an encouraging six months of growth and 5G's future is ramping up to meet the goals and projections that management has established."
"5G Wireless is right on track," continued Mr. Dix. "We're anticipating cash flow breakeven by year-end with many more clients coming on board in the months ahead. We'll continue to refine our cellular-approach design adding quality of service (QoS) to insure VoIP capabilities, and there are other exciting new products on our engineering bench planned to be introduced during 2006."
"The company's value proposition of doing more with less has achieved traction not only in the external marketplace, but also within the internal operational environment," added Lawrence C. Early, 5G Wireless Communications' CFO. "5G Wireless seems to be doing everything right."
About 5G Wireless Solutions, Inc.
5G Wireless Solutions, Inc., located in Marina del Rey, CA., is a wholly-owned subsidiary of 5G Wireless Communications, Inc. (OTCBB:FGWC - News). The company creates and markets wireless broadband solutions for university and municipal campuses, and provides wireless networking equipment to a select group of VARs and WISPs through its Authorized Channel Partners program. Customers enjoy high performance internet access at lower acquisition, implementation and maintenance costs than most major competitors because of uniquely enhanced Wi-Fi base stations. 5G Wireless Solutions products are distinguished by their exceptional service area range, throughput speeds, number of concurrent users, non-line-of-sight (NLOS) capabilities and unique security protocol. These enhancements are compatible with standard IEEE 802.11b Wi-Fi equipment for "last mile" roaming and point-to-multipoint networks. 5G's value proposition -- significantly increased performance at the lowest possible total cost of ownership (TCO) -- is quickly becoming a key consideration in the strategic deployment of the wireless experience.
Certain statements in this news release regarding both the parent company and subsidiary may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise which could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
All product or service names mentioned herein are the trademarks of their respective owners.
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News for 'FGWC' - (DJ 5G Wireless Announces 1-For-350 Reverse Stock Split) WASHINGTON (Dow Jones)--5G Wireless Communications Inc. (FGWC) will conduct a 1-for-350 reverse stock split, and change its trading symbol on Wednesday, according to its filing Tuesday with the Securities and Exchange Commission.
The Marina del Ray, Calif.-based wireless system maker said that its board believes that "many institutional investors have shied away from making investments in the company due to the low trading price of its common stock."
The company will start trading under the symbol FGWI Wednesday on its exchange, the Over-The-Counter Bulletin Board.
The company's stock recently traded Tuesday for less than a penny.
-By Ed Welsch, Dow Jones Newswires; 202-862-1356; edward.welsch*dowjones.com
(END) Dow Jones Newswires
November 22, 2005 15:25 ET (20:25 GMT)
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