Ottawa’s Edgewater Wireless (TSX-V:YFI) is already bouncing back from a poor year, surpassing its total revenues in its last fiscal year in the first quarter of its fiscal 2019 year alone.
The Ottawa-based developer of high-density Wi-Fi solutions saw revenues of $77,000 for the three-month period ending July 31, an increase of nearly $45,000 year-over-year and roughly $5,000 more than total revenues in fiscal 2018.
As the company moves from the development stage to production on its WiFi3 technology, it’s saving margins on scale. Compared to minimal sales margins over the same period in 2017, Edgewater saw gross margins of 25.5 per cent this past quarter and expects rates to reach 45 to 50 per cent at full volume.
The local firm cut its net loss to $508,000 for the quarter compared to $912,000 a year ago.
Edgewater’s multi-channel WiFi solution helps large venue operators, such as U.S. grocery chain Kroger, manage high demands for wireless connectivity. The firm hit a significant milestone this past summer after landing vendor status with U.S. cable company Mediacom, and says it’s in discussion with four of the five largest such operators in the United States.
CEO Andrew Skafel told OBJ this summer that partnerships with cable operators will bring Edgewater into the lucrative residential market, where “the lion’s share of WiFi is deployed.”
The firm’s order backlog currently sits just above $1 million.