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Redline Communications Group Completes Restatement of Financial Statements, reports Financial Results for 2009

^{Published on 2010-09-03 13:10:48 - Market Wire}
 

 Examples of such changes include the following: Personnel Changes: - A new, experienced senior management team was hired in April 2010. - Majed Sifri, former CEO of Redline, was asked by the Board to resign from the Board of Directors. Board Structure: - At its upcoming annual meeting, management will propose an increase in the number of independent Directors on the Board (from 2 to 5), and intends to put forward new independent nominees who have relevant accounting and corporate governance experience. - Role of Chair of the Audit and Compensation Committees to be rotated every two years. Management Oversight: - Standardized multi-executive review of large customer contracts, financial statements and financial metrics. - Enhanced inventory continuity and reconciliation measures. Internal Controls/Infrastructure: - Enhanced accounting system that limits reliance on manual processes. - Enhanced internal controls as outlined in our 2009 MD&A. 

 Financial Results Summary: (US$000 other than per share data) ------------------------------------------------------------------------- Three month period ended December 31 Years ended ------------------------------------------------------------------------- 2009 2008(1) 2009 2008(1) 2007(1) ------------------------------------------------------------------------- Revenue 11,133 12,822 38,990 37,419 21,365 ------------------------------------------------------------------------- Gross Margin 5,422 4,872 19,294 16,430 7,688 ------------------------------------------------------------------------- Operating Expenses 7,460 9,445 28,425 41,625 37,237 ------------------------------------------------------------------------- Net Income/(Loss) (2,246) (5,148) (9,808) (26,040) (30,832) ------------------------------------------------------------------------- Income/(Loss) per share $(0.10) $(0.25) $(0.47) $(1.25) $(2.43) ------------------------------------------------------------------------- Cash 4,759 4,355 4,759 4,355 28,721 ------------------------------------------------------------------------- (1) Restated 

 2009 Highlights: - Signed an agreement with the Ontario Ministry of Economic Development for $10 million in financing to support ongoing product development. The repayable loan is being provided through the Ontario Ministry of Economic Development's Advanced Manufacturing Investment Strategy (AMIS) program. - Added TESSCO Technologies Incorporated as a Value Added Distributor. Publicly traded TESSCO is a value-added provider of the product and supply chain solutions needed to design, build, run, maintain and use wireless systems. - Signed an agreement with Hydro One, the leading electricity transmitter and distributor in Ontario, to trial Redline's RedMAX 4C WiMAX solutions to enable communications to smart meters and other advanced electricity distribution technologies. - Selected by I-NetLink Wireless, a Manitoba-based wireless communications company, for its wireless network roll-out across 150 communities in rural Manitoba, which will be the largest WiMAX network in Manitoba. - Chosen by Rapid Link Incorporated, a leading provider of WiMAX and communication services, for its $7 million WiMAX network in California which will deliver high-speed wireless communications services throughout five counties in California. - Introduced RedMAX 4C SC- 100e Mobile WiMAX base station which incorporates IEEE 802.16e-2005 technology and offers customers a cost-effective and high capacity solution to establish a wireless network using the most advanced WiMAX technology available today. 

 Forward-Looking Statements --------------------------