March 28, 2017 Ottawa, Canada – Edgewater Wireless Systems Inc. (YFI; TSX.V), a wireless innovation company and the developer of WiFi3™, the industry’s first multi-channel technology for high-density WiFi and IOT applications, announced today that it has released its third quarter 2017 financial results. These quarterly results are for the period ended January 31, 2017 have been filed with Canadian Securities Administrators and are now available on SEDAR. In conjunction with this filing, the company has issued the following letter to shareholders:
Dear Fellow Shareholders,
I am very pleased to provide an update of our activities and progress. We achieved a number of strategic milestones during calendar year 2016, as the growing proliferation of data hungry devices continued to challenge the $33 billion global WiFi market[1].
Incumbent, single channel WiFi solutions have struggled to properly address network Capacity, Density and Interference. These three dominant issues are increasingly challenging wireless network performance and costing network operators millions of dollars annually in service and support.
Edgewater Wireless has commercialized a disruptive wireless technology to solve these issues. Our family of patented multi-channel WiFi access points and high performance silicon solutions, known as WiFi3™, target high density WiFi applications in the growing Carrier, CableCo (“MSO”), large enterprise and the Internet of Things (“IoT”) markets.
With the average North American user having over 2.9 WiFi enabled devices, telcos, cable operators, large enterprises, and stadium and convention center operators, are struggling to deliver WiFi networks that are capable of delivering demanding applications such as VoIP, HD video and data hungry apps such as SnapChat, YouTube, Facebook, and Netflix. According to technology industry publication Heavy Reading, there are roughly 17 million WiFi hotspots deployed by the US cable industry alone. These WiFi hotspots, deployed alongside countless other un-coordinated extenders and access points has led to massive interference problems – compounding the capacity issues.
Adding to the demand facing WiFi networks is the growing trend toward Internet of Things[2], where common household and office devices are being connected wirelessly. This further complicates the high-density and interference problems that are plaguing wireless networks.
During the third quarter, we made significant operational progress and materially advanced key strategic initiatives that meaningfully expand our addressable market and position us for growth. At the same time our team was heavily focused on the UpRamp accelerator program.
Year-to-Date Operational Highlights:
- Delivered hardware for a regional pilot and production testing with our Fortune 500 partner as we continued to scale our production capabilities
- Engaged six cable operators (or Multi-Service Operators) for pilots & Proof of Concept (PoC) deployments
- Subsequent to the end of the quarter, launched aera™, the world’s first 6-band wireless router/access point
Market Validation and Expansion
Our participation in the CableLabs UpRamp accelerator program has helped validate our technology and materially expand our addressable market. Through our work with Kyrio and CableLabs, Edgewater Wireless has demonstrated the impacts that real world interference and device density has on single channel access points and routers. We also learned through this testing that WiFi3 solves the “sticky client” issue . This is one of the major causes of bad WiFi as it works as a “boat anchor” when a user is far away from, but still tethered to, a wireless access point. This sinks the performance of all others devices utilizing the access point, not only in public areas but also in residential environments. Solving this “sticky client” issue is a significant proof point that further validates our innovative approach.
The market has further shifted in our favor as the demand for high density is expanding beyond venues and public spaces to what is known as the Multiple Dwelling Unit (“MDU”) vertical, which include developments like condos, dense townhome complexes and apartment buildings.
The market opportunity for WiFi3 is larger than we had anticipated as high density – interference, capacity and device density is becoming a major issue at the consumer level in the home.
Working with Denver-based UpRamp, a Cablelabs subsidiary, Edgewater Wireless has extensive access to the $500 Billion Cable industry. Through this, we have learned the major pain points that cable companies are facing and the key areas where our WiFi3 technology could be used to solve issues. We have moved quickly in a short period of time and are currently engaged with 6 cable companies in North America and Europe. We could not have achieved the level of engagement and involvement in the cable industry without the UpRamp Fiterator Technology Accelerator Program and the support from the teams at Cablelabs, UpRamp and Kyrio.
F500 Customer Update
On February 14, 2017 we completed a major milestone, delivering the Beta release of the world’s first multi-channel WiFi software driver. Delivery of the Beta release was a major step toward the large scale integration of WiFi3 within our Fortune 500 customer’s custom platform and represents significant progress beyond the pilots and testing we had previously accomplished.
Testing showed that the software load was stable, passing traffic and it is now being further optimized to deliver best in class performance, not only on our customer’s product, but to other OEM and licensing partners. This product involves the development of new technology that our companies are jointly engineering and Edgewater Wireless is delivering.
The next stages of our engagement will be to harden the software driver and move to larger deployments of the WiFi3 powered product while working toward a joint product announcement. The product could have global applications for large scale enterprise, public spaces and retail deployments.
Earlier this month, we began finalizing mechanical designs in advance of manufacturing for an upcoming regional Proof of Concept. On successful completion of the regional Proof of Concept, we anticipate ramping production.
Business Outlook
Subsequent to the end of the quarter, Edgewater Wireless launched a disruptive product into the wireless world with the introduction of aera – the world’s first 6 band wireless router/access point. aera is a complete solution for wireless service providers, cable operators and network managers to maximize capacity and performance of wireless networks. The initial response from our launch was overwhelmingly positive and we have begun taking pre-orders that will begin shipping later this spring. We also expect to launch a new investor relations website in the coming weeks to help enhance our engagement and communications with our investors.
In summary, we see growing momentum in our business as a result of the increased traction we have gained with our channel partners, our global distributors, our F500 partner and the cable operators we have recently engaged with. Our technology has been independently validated by the market and the opportunity to improve WiFi connectivity in our core market verticals is growing. The recent launch of aera is a meaningful catalyst for our business and I am extremely optimistic about our near- and long-term prospects to grow revenues.
Sincerely,
Andrew Skafel
President & CEO
Edgewater Wireless Contact:
Matt Massey
VP, Marketing
T: +1 613-797-9628
E: mattm@edgewaterwireless.com
W: www.edgewaterwireless.com
Rob Fink
Hayden IR
T: 646-415-8972
About Edgewater Wireless Systems Inc.:
Edgewater Wireless develops and commercializes leading edge technologies and intellectual property for the communications market. Edgewater Wireless delivers advanced product solutions designed to meet the high-density, high quality of service (QoS) and high-reliability needs of service providers and their customers. Leveraging over twenty (20) patents, Edgewater’s WiFi3™ is redefining WiFi technology with its wide-band, multi-channel radio and high-capacity Access Point solutions, and delivering next generation WiFi, today.
The best solution for High-Density WiFi networks, Edgewater Wireless WiFi3™ powered access point products enable innovative service providers to plan, build and deploy reliable, high-capacity services (like VoWiFI) for high-density wireless data demand in any environment.
Do more with less! Fewer access points delivering high quality service at a lower overall deployment cost make our patented WiFi3™ technology the right choice for your next WiFi network.
Explore the evolution of Wi-Fi at www.EdgewaterWireless.com
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. Although Edgewater Wireless believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Edgewater Wireless can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause Edgewater Wireless’ actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to access to capital markets, market forces, competition from new and existing companies and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. Edgewater Wireless undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
[1] Source: http://www.marketsandmarkets.com/PressReleases/global-wi-fi.asp
[2] Source: https://en.wikipedia.org/wiki/Internet_of_Things[/vc_column_text][/vc_column][/vc_row]