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Spectrum Global Reports Fourth Quarter and Full Year 2018 Results

March 26, 2019 | About:
2018 Revenue increased $23.8 million, a 221% increase over 2017
Gross Profit increased $4.1 million, a 299% increase from 2017

LONGWOOD, Fla., March 26, 2019 (GLOBE NEWSWIRE) -- -- Spectrum Global Solutions, Inc. ( SGSI) (“Spectrum” and the "Company"), reported financial results for the full year 2018. Roger Ponder, CEO and Chairman of the Company stated, “We are very pleased to report that Spectrum’s full year 2018 revenue has grown $23.8 million over the same period in 2017. Gross margin increased $4.1 million over 2017. In addition to our revenue growth we have decreased our loss from operations to $2.5 million from $6.1 million for the same period in 2017. Our existing subsidiaries continue to generate positive net income. Our goal is to continue to grow our existing businesses while focusing on our pending merger with WaveTech Global Inc. The merger should enable us to further increase our gross margins and revenue as we sell higher margin services and solutions. WaveTech has an array of exciting products and data centric solutions that will help us achieve those goals and overlay on top of our existing revenue sources. Our near term and long-term outlook is very positive and we look forward to ramping up our portfolio of recurring revenue. Spectrum is positioned with a robust portfolio of services, industry leading solutions and an aggressive sales and engineering group that will ultimately help us achieve our goals and objectives.

We are poised for an up listing to the NASDAQ exchange, pending regulatory approvals, soon after the merger with WaveTech closes. While the price of our stock is a factor for meeting the initial NASDAQ listing requirements, it is still the Board’s intention to limit the actual size of any reverse split to achieve a successful up listing.

Full Year 2018 Financial Highlights:

Full Year Revenue increased $23.8 million, a 221% increase over 2017
Full Year Gross Profit increased $4.1 million. A 299% increase over 2017

Revenue was $34,549,157 compared to $10,775,456, for the same period in 2017. Gross profit was $5,447,349 attributable to the operating subsidiaries. The Company had a net loss attributable to common stockholders of $1,847,380 during the period ended December 31, 2018 compared to net loss of $8,769,038,for the comparable period of 2017. The decrease in net loss was primarily due to revenue and gross profit derived from our new subsidiaries and an increase in income from change in derivative liabilities and other non-cash expenses.

2019 Business Highlights

Spectrum acquires TNS on January 4th and increases its enterprise service revenue
Spectrum retires $1.15M of acquisition financing
Spectrum announced over $7.4M in new contracts

Our operating results for the Period ended December 31, 2018 and 2017 are summarized as follows:

Twelve Months Ended December 31,Twelve Months Ended December 31,
Statement of Operations Data:
Revenues $34,549,157 $10,775,456
Operating expenses 37,088,814 16,846,944
Loss from operations (2,539,657) (6,071,488)
Total other income (expense) 1,441,581 (2,697,550)
Net loss attributable to common stockholders $(1,847,380) $(8,769,038)
Net loss per share, basic and diluted $(0.59) (6.32)
Basic and diluted weighted average shares outstanding 3,128,861 1,388,146

Balance sheet data:
Cash $620,593 $28,893
Accounts receivable, net 6,526,182 1,473,377
Contract assets 1,867,895 11,429
Total current assets 9,067,352 1,543,333
Goodwill and intangible assets, net 3,771,900 2,872.917
Total assets 12,930,396 4,505,340
Total current liabilities 17,532,321 10,932,340
Long-term liabilities - -
Stockholders’ (deficit) (5,691,332) (6,427,000)

About Spectrum Global Solutions, Inc.

Spectrum Global Solutions operates through its subsidiaries, AW Solutions, ADEX Corp and TNS. The Company is a leading provider of telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. For more information about the Company and its technologies visit the Company’s public filings at www.SEC.gov or the Company’s website at https://SpectrumGlobalSolutions.com/

About WaveTech Global, Inc.
WaveTech is a global next generation energy management company that specializes in asset lifecycle extension, intellectual property development, and implementation services. The Company offers a global portfolio of end-to-end energy optimization and lifecycle management solutions developed from proprietary intellectual property, engineered systems, and operational expertise. WaveTech’s extensive suite of products include power asset life extension, operational servicing and automation, lifetime cost reduction, and real-time heterogeneous power source switching. Additional information regarding WaveTech may be found on WaveTech’s website at www.WaveTechGlobal.com

Forward-Looking Statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.

Investor Relations
Spectrum Global Solutions, Inc.

Investor Relations
Damon Cameron
WaveTech Global, Inc.
[email protected]


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