ERF Wireless Third Quarter 2012 Revenues Increase 51% to $2,008,000 and Gross Profit Increases by 228% Due to Record Results Posted by Energy Broadband Oil and Gas Subsidiary
LEAGUE CITY, TX--(Marketwire - Nov 15, 2012) - ERF Wireless, Inc. ( OTCBB : ERFB ) (the "Company"), a leading provider of enterprise-class wireless and broadband products and services, announced today that the company has filed its Form 10-Q with the Securities and Exchange Commission reporting results for the quarter ended September 30, 2012.
The Company's financial results reflect its continued focus on growth through the expansion of its turnkey communications services to the oil and gas industry during a period of continued brisk oil and gas drilling activity in North America. These results include, but are not limited, to the following attributes:
The Company's overall consolidated revenues for the quarter ended September 30, 2012 was $2,008,000, an increase of $677,000 or 51%, as compared to $1,331,000 for the same prior year quarter ended September 30, 2011. The overall increase was comprised of a $654,000 increase in revenues in our Energy Broadband oil and gas operations subsidiary ("EBI"), in addition a combined increase of $37,000 from our wireless bundled services and enterprise network services business units and a $14,000 decline in our wireless messaging services.
Revenues of the Company's EBI subsidiary for the quarter ended September 30, 2012 were $1,363,000 as compared to revenues of $709,000 for the same prior year quarter ended September 30, 2011; an increase of $654,000 or 92%.
The Company's gross profit for the quarter ended September 30, 2012 was $977,000 as compared to $298,000 for the same prior year quarter ended September 30, 2011; an increase of $679,000 or 228%. This 228% increase in gross profits, along with the Company's 51% increase in revenues for the quarter ended September 30, 2012, resulted in an overall increase of gross margins of 49% for the quarter ended September 30, 2012 as compared to 22% for the same prior year quarter ended September 30, 2011.
The Company's consolidated net loss for the quarter ended September 30, 2012 was $1,453,000, as compared to a consolidated net loss of $1,348,000 for the same prior quarter ended September 30, 2011.
The Company's primary and fully-diluted net loss per share for the quarter ended September 30, 2012, was ($0.39), as compared to a fully-diluted net loss per share for the quarter ended September 30, 2011, of ($0.89).
Richard Royall, CFO of ERF Wireless, commented, "During the third 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 68% of the total ERF Wireless revenue and continues to have a very positive impact on the company's overall results."
Dr. H. Dean Cubley, CEO of ERF Wireless, commented, "We are very pleased with our third quarter results, which continue to be driven by the expansion of the drilling activity of our major oil and gas customers. Low natural gas prices have also resulted in a consolidation of drilling rigs in the more oil-rich areas, which we believe has made it much easier for Energy Broadband to consolidate its resources and service its customers in a more concentrated fashion. We remain excited and encouraged by the strong growth of our major oil and gas customers, and believe that our results demonstrate the profitability of our business model in that industry.
Operational Highlights
The Company continued its recently initiated expansion of its existing terrestrial broadband networks through a combination of construction and contractual agreements into major oil and gas drilling areas in the states of Kansas and Montana; allowing our Energy Broadband subsidiary to meet the communications needs of existing Fortune 200 customers' increased drilling in these markets. Additionally, the Company recently opened warehouse and operating facilities and is in the process of designing and building a new terrestrial broadband network in the Bakken Shale area of North Dakota. The Company also expanded its existing networks in Texas, New Mexico and Oklahoma.
The Company announced that it is also providing terrestrial wireless communications services for a customer in the Wattenberg Field of the Niobrara Basin north of Denver, Colorado. The Company began providing services for this customer in the later part of the second quarter of 2012 and this customer continues to add rigs.
About ERF Wireless
ERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband Inc., ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF Wireless Messaging Services and ERF Network Services. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years.
