Texas based ERF Wireless, offering wireless and broadband product and service solutions to enterprise, commercial, and residential clients in the U.S. and internationally through its various division and subsidiary operations, today provided an update on the company’s goals and financial guidance for the 2012 calendar year.
ERF CEO, Dr. H. Dean Cubley, summarized the outlook: “Our market leadership position as the largest terrestrial wireless provider to the oil and gas industry in North America — coupled with an expected increase in demand for secure, high-speed, high-capacity, reliable wireless broadband circuits that replace slower, high-latency VSAT circuits at drilling rig sites by operators and producers — gives us confidence we can continue strong growth in calendar 2012. For calendar 2012, we are targeting consolidated revenues of $12-14 million with blended gross margins of 65-70%. If our backlog continues to grow in 2012 as it has in 2011, we are also targeting consolidated revenues in the range of $20-22 million for calendar 2013.”
Specific objectives and expectations include the following:
• Grow High Margin Revenue and Improve Overall Financial Posture
ERF Wireless plans to continue moving toward profitability by growing high-margin oil and gas revenue, while reducing corporate expenses and expanding their WISP, banking, education, and other vertical revenue. ERF has a substantial business backlog relating to new network coverage for the oil industry, as well as banking, educational, and hospital networks. Funding for part of the expansions is based upon already secured $3 million in debt financing.
• Maintain and Strengthen Company Position as the Largest Terrestrial Wireless Provider to the Oil & Gas Industry in North America
ERF Wireless currently owns and operates the biggest oil and gas based terrestrial wireless broadband network in North America, covering Texas, New Mexico, and Oklahoma, in addition to Arkansas, Colorado, Wyoming, and Alberta, Canada. The company is also completing a new network in North Dakota. In addition, there are plans for at least one acquisition to support the growing oil and gas broadband demand.
• Enhance Equity Structure and Grow Shareholder Value
ERF Wireless expects to leverage its growth in the oil and gas industry by taking its wholly owned subsidiary, Energy Broadband, public as a majority owned public subsidiary in the 2012-2013 period. In addition, debt will continue to be removed from the ERF Wireless balance sheet, and the company will continue its efforts to secure a listing on a national market stock exchange.
ERF Wireless Inc. is the parent company of Energy Broadband, Inc., ERF Enterprise Network Services, ERF Wireless Bundled Services, ERF Wireless Messaging Services, and ERF Network Operations.
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