ERF Wireless Inc., a leading provider of enterprise-class wireless and broadband products and services, today announced its financial results for the third quarter ended September 30, 2011.
The company reported that its quarterly revenues increased 51 percent to $1.3 million for the third quarter ended September 30, 2011, compared to $882,000 in revenues reported for the comparable three months of 2010.
Gross profit margins increased to 33 percent for the current quarter compared to 21 percent for the prior year quarter.
ERF Wireless’ net loss for the third quarter of 2011 was reported at $1.3 million compared to a net loss of $2.2 million for the third quarter of 2010.
Richard Royall, CFO of ERF Wireless, further detailed the company’s financial position for the three and nine months ended September 30, 2011.
“During the third quarter of 2011, we continued to generate substantial growth in the oil and gas sector and have dramatically improved our overall financial condition since fiscal year end, including 182 percent increase in net sales for our oil and gas subsidiary Energy Broadband Inc. for the quarter ended September 30, 2011,” Royall stated in the press release. “We also achieved a $1.5 million improvement in our liquidity position and a $1.1 million improvement in our Shareholders’ Equity for the nine-month period ended September 30, 2011. Lastly, we retired some $1.5 million in certain debt and capital leases in the first nine months of 2011, resulting in an overall $1.1 million decrease in current liabilities and an increase of $0.4 million in current assets.”
Dr. H. Dean Cubley, CEO of ERF Wireless, said the company achieved “dramatic improvements” in its financial and operational results, which have positioned the company to continue revenue growth.
“The results have paved the way for our recently announced closing of a $3 million debt financing with Dakota Capital Fund LLC that will allow us to expand our operational footprint in active oil and gas drilling regions in preparation for additional increases being experienced in the oil and gas industry,” Dr. Cubley stated. “Given the foundation that we have put in place during the last two years, along with recent new contract wins with major oil and gas producers, we expect to begin realizing substantially more recurring wireless circuit, construction and services revenues from all of our oil and gas contracts for the balance of calendar year 2011 and into calendar 2012.”
For more information visit www.erfwireless.com
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