CoroWare Reports Strong Second Quarter 2016 Financial Results
45% Increase in Gross Revenues Year-Over-Year
"Revenues for the quarter ended June 30, 2016 were 45.5% higher compared to the same period a year ago as the Company continued to focus on selling R&D support, operations support, and marketing support services. Even though we are pleased with what we have accomplished to date this year, we know we have our work cut out for us. Our management team remains focused on three key facets that drive our business: providing our customers with end-to-end solutions to enhance the value of their business, building OEM and marketing partner relationships, and growing profitability," commented Lloyd Spencer, president and CEO of CoroWare, Inc.
"Companies are increasingly looking for ways to exploit intelligent technologies to fuel innovation. We are taking a long-term approach to staying ahead of the curve in the dynamic technology sectors that we are focused on. To this end, we are accelerating our sales efforts, acting on opportunities where we can grow in both new and existing markets, and acquiring talent to complement our current competencies," Spencer concluded.
- CoroWare posted revenues of $1,971,901 for the three month period ended June 30, 2016 compared to $1,355,239 for the same period a year ago, an increase of 45.5%.
During the six months ended June 30, 2016, revenues were $3,618,088 compared to revenues of $2,153,780 for the same period a year ago, an increase of 68.0%.
- Gross Profit for the three month period ended June 30, 2016 increased 35.6% to $386,868 for the quarter compared to $285,232 for the same period a year ago. The gross profit percentage for this three month period was 19.6% compared to 21.0% for the same period a year ago.
During the six months ended June 30, 2016, Gross Profit increased 68.3% to $861,452, compared to $511,711 for the same period a year ago. The gross profit percentage was 23.8% for the six month period ended June 30, 2016 as well as for the same period a year ago.
- Operating Expenses were $450,871 for the three month period ending June 30, 2016 as compared to $515,006 for the same period a year ago, a decrease of 12.5%. General and administrative (G&A) expenses decreased to $415,261 compared to $453,037 for the same period last year. Sales and marketing expenses decreased to $21,133 as compared to $39,221 for the same period in the prior year. Research and development (R&D) costs totaled $11,494 for the current quarter as compared to $19,548 for the same period last year.
For the six month period ending June 30, 2016, Operating Expenses increased 30.8% to $1,217,049 as compared to $930,177 for the same period last year. G&A Expenses amounted to $1,129,801 compared to $824,842 for the same six month period last year. Sales and marketing expenses were $48,649 as compared to $59,239 for the six months ended June 30, 2015. R&D costs totaled $32,872 compared to $39,876 for the same period a year ago. The overall increase in operating expenses was due to the Company increasing its travel expenses in support of its marketing specialist services and an increase investor relations expenses.
- Loss from Operations decreased 72.1% to $64,003 for the three month period ending June 30, 2016, compared to $229,774 for the same period last year. This decrease is attributed to an increase in gross profits and a decrease in G&A expenses.
Loss from operations decreased 15% to $355,597 for the six month period ended June 30, 2016, from the $418,466 reported for the same period a year ago.
- Net income for the three month period ending June 30, 2016, was $5,760,752 compared to a net loss of $(457,461) for the same period a year ago, an increase of 1,359.3%. The increase in net income is primarily a result of an increase in gain on the change in derivative liabilities and an increase in loss on extinguishment of debt.
- Realized Gross Revenues that exceeded management expectations as the company increased the sale and delivery of agile IT support services, marketing specialist services, hardware design and technical support services.
- Initiated the development of a Mixed Reality QuickStart Program that can help customers implement compelling augmented and virtual reality solutions for education, training, and marketing.
- Launched an Industrial Internet of Things (IIoT) initiative in response to "smart building" customer inquiries.
The full 10-Q report may be accessed by going to http://www.otcmarkets.com/stock/COWI/filings.
About CoroWare, Inc.
CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:
- Business Consulting Services: R&D engineering services, business process workflow, software architecture, design and development, content management, console, PC and online game production, marketing coordination and management.
- Technology Incubation: Consulting services and custom solutions such as Industrial Internet of Things (IIoT); Mixed Reality for visualization and simulation; and mobile robot platforms for university, government and enterprise customers.
For more information, please visit www.coroware.com.
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The ability of the Company to complete and file its Fiscal Year 2016 annual report on Form 10K relies on third parties to complete their activities. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
Pamela R. Lagano
CoroWare Investor Relations
(800) 641-2676, option 3