Report

Wi2Wi Corporation (TSXV: YTY): Q2 Revenues up 20% YoY / Gross Margins Improve – FINAL REPORT

Fundamental Research Corp has issued a report entitled “Wi2Wi Corporation (TSXV: YTY): Q2 Revenues up 20% YoY / Gross Margins Improve – FINAL REPORT” and dated October 16, 2019.  The full report is now at .

 

Key Highlights

 

  • Wi2Wi Corporation (“company”, “Wi2Wi”) reported Q2-2019 revenues of $2.92 million, YoY growth of 19.90%. Given the company’s strong improvement in revenues, we have revised our 2019, and 2020, revenue forecasts to $11.96 million (from $10.82 million) and $13.39 million (from $12.22 million), respectively.

 

  • Improvement in Gross margins: Gross margins improved from 31.51% in Q2-2018 to 37.27% in Q2-2019 – exceeding our expectations. We had forecasted 2019 gross margins of 30.42% and are revising to 34.56%. In addition, our longer-term gross margins have been revised upwards.

 

  • Improvement in Net Income: Q2-2019 net income was $124k (EPS: $0.00) versus Q2-2018’s net income of $9k (EPS: $0.00). The improvement in net income was due to stronger revenues and gross margins. Due to revisions in revenues and gross margins, our revised 2019, and 2020, earnings forecast is $0.35 million (EPS: $0.00) and $0.78 million (EPS: $0.01). This compares to our previous 2019, and 2020, earnings forecast of -$0.75 million (EPS: -$0.01) and $0.27 million (EPS: $0.00), respectively.

 

  • At the end of Q2-2019, the company had $2.03 million in cash. Working capital and the current ratio were $5.33 million and 4.62x, respectively. The company had no debt.

 

 

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Underlying
WI2WI Corp

WI2WI is a Canadian based exploration and development company. Co. is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally. Co.'s business has been the acquisition of interest in petroleum and natural gas and the exploration, development and production of petroleum and natural gas, primarily in Western Canada. Co. owns and operates a strong asset base of producing oil and gas properties in Western Canada that it continues to maintain through the drilling of internally generated low to medium risk exploration and development opportunities.

Provider
Fundamental Research
Fundamental Research

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