Siyata Mobile Announces Year-End 2020 and First Quarter 2021 Financial Results (**UPDATED TO ...
VANCOUVER, British Columbia, July 02, 2021 (GLOBE NEWSWIRE) -- Siyata Mobile Inc. ( NASDAQ: SYTA, SYTAW ) (“Siyata” or the “Company”), a global vendor of Push-to-Talk over Cellular (PoC) devices and cellular booster systems, announced its financial results for the twelve months ended December 31, 2020 and for the three months ended March 31, 2021. All amounts are in U.S. dollars unless otherwise indicated.
Key financial highlights for the twelve months ended December 31, 2020 include the following:
- Revenue was $6.0 million compared to $9.8 million for the same period the previous year. This negative variance of $3.8 million (-39%) is due mainly to a $4.7 million year-over-year decrease in sales in Israel and Europe, the Middle East and Africa (EMEA) offset by an $800,000 increase in North American revenue.
- Gross margin for the year ended December 31, 2020, was 26.4% compared to 27.4% last year.
- Net loss was $13.6 million compared to a net loss of $7.7 million for the same period the previous year, a negative variance of $5.9 million.
- Adjusted EBITDA was ($7.1) million versus ($4.2) million for the same period in the previous year, a negative variance of $2.9 million.
Key financial highlights for the three months ended March 31, 2021 include the following:
For the first quarter of 2021, Siyata experienced a robust return in broad based demand, punctuated by record sales, record organic growth, record margins, and smaller adjusted EBITDA loss.
- Revenue increased 77% year-over-year to $4.0 million from $2.3 million in the same period in 2020.
- Gross margin percentage increased to 43.2% from 25.2% in the first quarter of 2020.
- Net loss was $2.1 million compared to a net loss of $1.2 million for the same period the previous year, a negative variance of $0.9 million.
- We closed the quarter with $9.7 million in cash and $11.5 million in working capital.
- Adjusted EBITDA improved to ($291,000) from ($460,000) in the prior-year period.
A reconciliation of IFRS to non-IFRS measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-IFRS Financial Measures.”
Recent Corporate Highlights:
- In December 2020, Siyata closed a $13 million private placement led by Phoenix Insurance Fund with 129,450 units at a price of $100 per unit.
- Siyata received a $550,000 purchase order for the UV350 in-vehicle IoT device from a cellular carrier in the Gulf of Mexico region to supply first responders.
- Siyata received a $1.4 million purchase order to equip first responders with rugged handsets devices.
- Siyata received its largest purchase order to equip police vehicles with the UV350.
- Siyata closed the strategic acquisition of ClearRF, LLC for $700,000 with a combination of cash and shares. Headquartered in Spokane, WA, ClearRF produces M2M (machine-to-machine) cellular amplifiers for commercial and industrial applications.
- Siyata appointed Peter Goldstein as Chairman of its Board of Directors and added seasoned public company executive Luisa Ingargiola to the Board of Directors.
We believe that Siyata Mobile is better positioned today than it has ever been to be able to monetize the aforementioned trends driving our industry. While COVID had a negative impact on our business in 2020, many of our end markets are now rebounding due to pent-up demand coupled with a long term fundamental shift to next generation cellular solutions for enterprise customers and first responders. We believe that we have the right sales team, the right product portfolio, and the right customer relationships in place in North America and internationally to drive sales throughout the balance of 2021, and we are very excited about how we intend to grow our sales in the coming quarters with a clear focus on reaching profitability in the coming quarters.
Siyata Mobile Inc. is a Business-to-Business (B2B) global vendor of next generation Push-To-Talk over Cellular (PoC) devices and cellular booster systems. Its portfolio of in-vehicle and rugged smartphones enable first responders and enterprise workers to instantly communicate, over a nationwide cellular network of choice, to improve communication, increase situational awareness and save lives.
Its portfolio of enterprise cellular booster systems enables first responders and enterprise workers to amplify its cellular signal in remote areas, inside structural buildings where signals are weak and within vehicles for maximum cellular signal strength possible.
Siyata’s common shares trade on the Nasdaq under the symbol “SYTA” and its warrants under “SYTAW”.
On Behalf of the Board of Directors of:
SIYATA MOBILE INC.
Investor Relations (Canada):
Investor Relations (United States)
Glenn Kennedy, VP Sales
Siyata Mobile Inc.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Siyata is using forward-looking statements in this press release when it discusses its belief that it is better positioned today to monetize the trends driving its industry, that its end markets are rebounding due to pent up demand coupled with a long term fundamental shift to next generation cellular solutions for enterprise customers and first responders, its belief that it has the right sales team, product portfolio and customer relationships to drive sales throughout the balance of 2021 and its intend to reach profitability in the coming quarters . Because such statements deal with future events and are based on Siyata’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Siyata could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Siyata’s filings with the Securities and Exchange Commission (“SEC”), and in any subsequent filings with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
Non-IFRS Financial Measures
This press release includes Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), which Siyata utilizes to assess the financial performance of its business that is not a measure recognized under International Financial Reporting Standards (“IFRS”). This non-IFRS measure should not be considered an alternative to performance measures determined in accordance with IFRS and may not be comparable to similar measures presented by other issuers. For a reconciliation of Adjusted EBITDA to Net Income (Loss), see the reconciliation table below.
(Note: All figures in table below in USD)
|Full Year 2020||Full Year 2019||Q1 2021||Q1 2020|
|Foreign exchange loss (income)||(290,401||)||106,745||440,321||(141,276||)|
|Amortization and Depreciation||1,280,122||1,168,594||321,017||324,196|
|Bad debts expense||1,530,667||-|
|Intangible asset impairment||293,000||111,521|