VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2012) -Webtech Wireless Inc. (TSX:WEW) ("Webtech Wireless" or the "Company"), a leading provider of vehicle fleet location-based services and telematics technology, today announced its financial results for the three and twelve-month period ended December 31, 2011.

Q4 2011 Financial and Operational Highlights

• Total revenue increased 4% to $11.4 million in Q4 2011 compared to $11.0 million in Q4 2010. On a constant currency basis total revenue for Q4 2011 increased 7% over the same period in 2010. The increase was driven by growth of recurring revenue. Total revenue for the fiscal year 2011 was $41.4 million which is consistent with 2010, but is up 4% on a same currency basis. The increase is particularly due to sales of Quadrant transportation solutions, sales in the theft recovery segment and several large NextBus projects that were implemented in 2011.
• Adjusted EBITDA was $0.8 million in Q4 2011 compared to a loss of $2.2 million in Q4 2010. For 2011, the adjusted EBITDA was $0.8 million compared to a loss of $2.8 million for 2010.
• Notable new sales, renewals and implementations during the quarter included the Masternaut Limited, Cummings, Global Tracking, Trackyou Ltd. and North County Transit District (North San Diego County) and a large southeastern utility company.
• Recurring revenue increased 21% to $6.1 million or 53% of total revenue compared to $5.0 million or 46% of total revenue for Q4 2010. On a constant currency basis recurring revenue increased 24% quarter over quarter. For 2011, recurring revenue increased 6% to $21.9 million or 53% of total revenue compared to $20.6 million or 50% of total revenue for 2010. On a constant currency basis year over year recurring revenue increased 9%. Recurring revenue increased both for the quarter and the year due to the increase in subscribers.
• Subscribers at December 31, 2011 totalled approximately 102,000 (combined direct and enterprise), compared to 101,000 at September 30, 2011 and 85,000 at December 31, 2010. Insurance subscribers were 16,900 at December 31, 2011 compared to 15,850 at September 30, 2011. NextBus subscribers were 11,250 at December 31, 2011 compared to 11,450 at September 30, 2011.
• Gross margin increased to 52% of total revenue from 36% in Q4 2010 due primarily to one time charges in the prior period. Gross margins for 2011 increased to 55% from 52% in 2010 resulting largely from an increase in subscription revenue and realized cost savings in 2011. In addition there were significant sales of high margin predictive arrival services in 2011.
• Operating expenses declined 23% to $5.7 million in Q4 2011 from $7.4 million in Q4 2010. Operating expenses (sales and marketing, research and development, and general and administration excluding depreciation, amortization, stock based compensation and one-time items) for fiscal 2011 declined 17% to $24.2 million from $29.3 million in 2010. The decrease for both the quarter and the year was the direct result of restructuring efforts undertaken earlier in 2011. As reported in the second quarter of 2011, as part of its ongoing review of all significant operations and processes, the Company determined that there were calculation errors in prior year figures. As a result, out of period adjustments were made to the 2010 comparative figures presented in the December 31, 2011 Consolidated Financial Statements. These adjustments did not have any impact on the Company's cash or financial position, or the results for the quarter and twelve-months ended December 31, 2011.

"We are pleased to report our third consecutive quarter of positive Adjusted EBITDA and an overall positive Adjusted EBITDA for the year," said Scott Edmonds, President and Chief Executive Officer. "We continue to benefit from our focus on our highest margin verticals which produce a more attractive hardware margin as well as a two or three year subscription contract and where we have a sustainable competitive advantage thanks to our depth of offering - these being Transport/Service Fleets and Oil and Gas for Quadrant, Winter Maintenance for InterFleet, and Predictive Arrival at NextBus. Our overriding goal continues to be to acquire more recurring revenue while matching our costs to our base revenues in order to achieve an acceptable and sustainable level of profitability. We continue to believe we have the right people, products and execution strategy to achieve our objectives, and be a leading player in the strong growth of the telematics marketplace."

Financial Highlights

Revenue

The increase in revenue in the quarter compared to the prior year is the result of an increase in recurring revenue particularly due to sales of Quadrant transportation solutions, sales in the theft recovery segment and several large NextBus projects that were implemented in 2011. Fiscal 2011 revenue remained stable compared to 2010, but recurring revenue increased particularly due to sales of Quadrant transportation solutions, sales in the theft recovery segment and several large NextBus projects that were implemented in 2011.

Recurring revenue as a percentage of total revenue was 53% for the quarter compared to 46% in Q4 2010 and was 53% for 2011 compared to 50% in the prior year. The Company grew its subscriber base particularly in its NextBus business and in the theft-recovery vertical as a result of a large new NextBus customer and hardware sales in prior periods. The subscriptions to the Quadrant and InterFleet web portal reporting solutions also grew in all geographic segments. The shift away from hardware to a majority of subscription, software and services revenue reflects management's focus on developing the Software as a Service ("SaaS") model and is expected to continue.

Gross Margin

In the quarter, gross margins increased relative to 2010 primarily due to one-time charges recorded in the fourth quarter of 2010. In addition, high margin recurring revenue was strong in the current quarter impacting the mix of margins produced. Margins were also positively impacted by a significant drop in cost of sales resulting from the shift away from in-house manufacturing as well as other costs savings related to the restructuring program. The strength of the Canadian dollar relative to the US dollar for the majority of the quarter also had an impact, as 58% of revenue is denominated in US dollars and the majority of costs are incurred in Canadian dollars.

Operating Expenses

Operating expenses in Q4 2011, which include non-cash charges for depreciation and amortization, stock based compensation and one-time expenses (as defined below), decreased by 20% over the prior period. Operating expenses for fiscal 2011 declined 16% to $25.2 million from $30.1 million in 2010. This decrease was the direct result of restructuring efforts undertaken earlier in 2011 and the impartment of intangible assets recorded in 2010 that reduced amortization expense in 2011.

Adjusted EBITDA⁽¹⁾

The Adjusted EBITDA for the quarter was $0.8 million in Q4 2011 compared to Adjusted EBITDA loss of $2.2 million in Q4 2010. The Adjusted EBITDA for fiscal 2011 was $0.8 million compared to Adjusted EBITDA loss of $2.8 million in fiscal 2010.

Results on a non-GAAP EBITDA basis are determined as follows:

Non-GAAP Financial Measures

In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters. Details of such non-GAAP financial measures and how they are derived are provided in conjunction with the discussion of the financial information reported.

Cash and Working Capital

As at December 31, 2011, the Company's unrestricted cash position amounted to $5.9 million, which consisted of cash, cash equivalents and short-term investments, compared with $4.0 million at December 31, 2010. The Company's unrestricted cash position was $5.1 million at September 30, 2011. The Company drew $472,000 from its term facility in the quarter.

As at December 31, 2011, the Company had net working capital of $11.9 million, compared with $11.8 million at December 31, 2010. The Company has historically invested in product and market development, and as a result had negative cash flows but has recently taken a number of steps to improve its ability to generate cash from operations and as a result, has improved its working capital position.

As at March 14, 2012 Webtech Wireless had 105,424,265 common shares outstanding.

IFRS Changes

The Company adopted International Financial Reporting Standards ("IFRS") during the first quarter of 2011, and accordingly, restated all 2010 comparable figures to conform with IFRS. A number of changes in the financial information previously reported under Canadian GAAP resulted from this process as detailed in Note 24 of the Condensed Consolidated Financial Statements.

Financial Statements and Management Discussion & Analysis

The Condensed Consolidated Financial Statements for the three and twelve-months ended December 31, 2011 and the related Management Discussion & Analysis for the period has been filed on SEDAR at [ www.sedar.com ], and also on the Company's website at [ www.webtechwireless.com ].

Notice of Conference Call

Webtech Wireless will hold a conference call today, March 16, 2012, at 11:00 am ET hosted by Mr. Scott Edmonds, President and Chief Executive Officer and Mr. Andrew Morden, Chief Financial Officer, to discuss the Company's financial results and corporate developments. To access the conference call by telephone, dial +1.416.340.8530 or +1.877.240.9772. A taped replay of the conference call will be archived on the Company's corporate website at: [ www.webtechwireless.com ].

About Webtech Wireless^®

Webtech Wireless Inc. (TSX:WEW) is a provider of vehicle fleet location-based services (LBS) and telematics technology. It develops, manufactures and supports end-to-end wireless solutions that improve the productivity, profitability, environmental compliance and safety of vehicle fleets. Its comprehensive suite of products and services include: automatic vehicle location (AVL), mapping, vehicle diagnostics, CO₂ reporting, navigation, messaging, and mobile resource management. The Company serves customers of all sizes in the transport, government, service, insurance and OEM markets in over forty-one countries, including Fortune 500 companies. Specialized products include: Quadrant^® commercial fleet solutions, InterFleet^® solutions for government, and NextBus^® real-time passenger information services for transit fleets. For more information, please visit [ www.webtechwireless.com ].

This News Release may contain forward-looking statements involving risks and uncertainties pertaining to, but not limited to, product plans, timing, content, pricing of products, market and industry expectations, the wireless communications and mobile fleet industries, and general economic and political conditions. Given the risks and uncertainties inherent in the markets and industries referred to in this News Release, Webtech Wireless cannot guarantee that any forward-looking statements will be realized. All amounts in Canadian dollars (CAD$) unless otherwise noted.Trademarks are the property of their owners.

Contributing Sources

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