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VANCOUVER, BC, March 1, 2021 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSXV: LTE) (PINK: LTCCF), a world leader in the use of innovative and proven micro/narrow trenching technologies, alternate methods of deployment and specialist products which transform the cost of fibre optic network deployment for telecommunications operators, today reported its financial results for the first quarter ended December 31, 2020. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER 2021:
Total Q1 2021 revenue of $6,166,355 compared to $1,109,539 for Q1 2020;
Net loss of $(763,305) for the three months ended December 31, 2020 compared to net loss of $(957,433) in the comparative quarter.
The net loss for the first quarter ended December 31, 2020, included revenues, costs of sales, and operating expenses from the UK business, as the Company was executing its operations in Lowestoft, Bury St. Edmunds and Cambridge, until the contracts were terminated in December 2020. The estimated losses incurred were accrued as of September 30, 2020 and therefore the losses associated with the first quarter 2021, were substantially reversed in the current quarter as they have already been previously accrued, resulting in an immaterial net loss position associated with the UK business for the three months ended December 31, 2020. In the prior year quarter, the Company also had limited UK activity, as it was focused primarily on mobilization and setup efforts in Lowestoft in anticipation of the ramp up for the CityFibre contract.
Carlo Shimoon, President and CEO of Lite Access, stated, "With the upcoming acquisition of AMEC (see press release dated January 29, 2021), finalization of a $14.4 million contract with the City of Brooks, Alberta (see press release dated January 20, 2021), and increasing number of RFP's we expect to convert into contracts, we believe we are building a business that can scale and be sustainable and profitable to take advantage of the fibre build out and work-from-home movement. With UK costs substantially behind us, an improving outlook in terms of Canadian operations and domestic business opportunities, approximately $1.4 million cash as of March 1, 2021 following closing of the recent financing (see press release dated March 1, 2021), and an undrawn $500,000 line of credit, we are confident we are on a path that sets us up well for the future.
Our Q1 results reflect a time of transition as we wound down operations in the UK and focused on Canadian operations. At this stage, we have largely completed the heavy lifting associated with the UK wind down. We had a much better quarter in Canada in Q1 compared to Q1 last year."
HIGHLIGHTS SUBSEQUENT TO THE FIRST QUARTER:
On January 29, 2021, the Lite Access announced it had entered into a non-binding term sheet (the "Term Sheet") with AMEC Cutting & Coring Limited ("AMEC"), a British Columbia based company that offers a wide range of services including concrete/ asphalt cutting and coring, scanning and utility locates, as well as fibre optic cable installation, pulling, splicing and testing. The Company expects the transaction to acquire AMEC to close in March 2021.
On March 1, 2021, the Company closed a fully subscribed non-brokered private placement financing (the "Financing") for total gross proceeds of $1.26 million to fund growth initiatives and for general working capital purposes.
About Lite Access
Lite Access Technologies Inc. is a world leader in the use of innovative and proven micro/narrow trenching technologies, alternate methods of deployment and specialist products which transform the cost the network deployment for telecommunications operators.
As part of its suite of services Lite Access provides clients with integrated solutions or select components for the design and implementation of fibre optic networks. Lite Access' products have been deployed in many high-profile communication networks including Olympic facilities, military and government, numerous communities throughout the United Kingdom, the USA and Canada as well as global telecommunications companies that have adopted Lite Access as the "solution of choice" for the least invasive, most cost effective and future-proof fibre optic connectivity available.
Lite Access' installation technology and proprietary products extend a network provider's ability to deliver true broadband connectivity directly to end-users, such as homes, businesses, government and educational institutions, and emergency response facilities. Lite Access remains flexible and innovative in its commitment to provide global clients and partners with the most cost effective and proven fibre connectivity solutions available.
Forward Looking Information
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Lite Access uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Lite Access in light of its experience and its perception of historical trends, current conditions and expected future developments. However, whether actual results and developments will conform to Lite Access' expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause Lite Access' actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors include, among other things: risks and uncertainties described in Lite Access's most recent Management Discussion & Analysis (MD&A) for the financial year ended September 30, 2020 which can be accessed at www.sedar.com. The "forward-looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, Lite Access undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Lite Access Technologies Inc
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