ERF Wireless, a provider of enterprise-class wireless and broadband products and services, today reported its second-quarter financial results, with improvements reflecting the company's aggressive growth strategy of expanding its services in the oil and gas industry.
Second-quarter revenues came in at $1.68 million, an increase of 29 percent as compared to revenues of $1.31 million reported for the second quarter of the year prior. The overall increase includes a $380,000 increase in the company's oil and gas operations subsidiary, Energy Broadband Inc.
Energy Broadband reported revenues of $1.02 million for the second quarter of 2012, an increase of 59 percent as compared to revenues of $642,000 for the same quarter the year prior.
"During the second quarter of 2012, we continued to experience substantial growth of both
revenues and gross profits in our Energy Broadband subsidiary's business in the oil and gas sector. Energy Broadband now represents 61 percent of the total ERF Wireless revenue and continues to have a very positive impact on the company's overall results," Richard Royall, CFO of ERF Wireless stated in the press release. "Based on oil and gas industry activity in the second quarter, we anticipate we will continue to see very positive results in 2012 as Energy Broadband delivers more reliable, cost-effective high-speed bandwidth to the industry."
ERF Wireless reported a net loss of $1.35 million, or a loss of $0.46 per share, as compared to a net loss of $1.15 million, or a loss of $1.06 per share, for the comparable quarter of 2011.
Dr. H. Dean Cubley, CEO of ERF Wireless, said the company expects the positive results to continue throughout 2012.
"During the second quarter of 2012, we have experienced a significant expansion of the drilling activity of our major oil and gas customers resulting in a very favorable expansion of revenue in Energy Broadband. I believe that this trend will continue for the future as oil prices remain strong and oil drilling activity continues to accelerate," Cubley stated. "Low natural gas prices have also resulted in a consolidation of drilling rigs in the more oil-rich areas making it much easier for Energy Broadband to consolidate its resources and service its customers in a more concentrated fashion. With recent new major drilling customer wins and a corresponding substantial rig number increase with our existing customers, we anticipate that our financial results will continue to positively increase with the accelerating revenue to meet our objectives of cash flow positive and profitability during 2012."
For more information visit www.erfwireless.com
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