MILPITAS, CA — (Marketwired) — 10/29/13 — AmbiCom Holdings, Inc. (OTCQB: ABHI), a leading designer and developer of innovative wireless products for the medical and automotive verticals, and a distributor of innovative healthcare products that has sold more than one million devices worldwide, today announced financial results for its fiscal year ended July 31, 2013.
“AmbiCom-s transition to profitability marks a key milestone for our management team and shareholders,” said AmbiCom CEO John Hwang. “With triple-digit revenue growth rates and financial independence, management is focused on scaling revenues higher and unlocking long-term shareholder value by introducing new wireless products, such as the SDIO cards, and entering new retail markets, with products like the Solar Ionic Toothbrush.”
Total revenues increased 120%, from $1,502,676 to $3,300,472, due to increased demand for its wireless solutions, as the market transitions from traditional wired solution to wireless connectivity. Management anticipates demand to continue increasing with the introduction of its new SDIO cards and home medical devices.
Gross profit increased by 96%, from $896,777 to $1,753,418, due to the increase in overall revenues. While gross margins decreased from 59.7% to 53.1%, these levels will vary based on outsourcing costs, product mix, and its transition into retail. Operating expenses decreased 16% due to lower R&D, public relations, and other fees.
Net income increased from a net loss of $595,700 to a net income of $530,013 due to revenue growth that outpaced growth in expenses. Management expects to remain profitable in FY2014 as it continues to cost-effectively grow the business and enhance long-term shareholder value.
Cash and equivalents increased 139% from $249,327 to $596,871, while current liabilities decreased 44% from $793,233 to $444,789. Current assets increased 38% from $758,751 to $1,045,712, yielding a strong current ratio.
“Sales in the wireless medical device industry have grown at a rapid pace over the past few years as healthcare providers seek increased outpatient services and wireless technologies reduce service requirements and enhance patient quality of life,” added Mr. Hwang. “We expect to see ongoing top- and bottom-line growth from this segment, driven by high-margin recurring income, while simultaneously focusing on a number of other initiatives to drive value.”
AmbiCom is headquartered in Milpitas, California, and is a leading designer and developer of wireless products focusing on Wi-Fi and Bluetooth® applications for the wireless medical, healthcare and automotive industries. AmbiCom purchases standard wireless products and designs and develops features and packaging to customize these products to its target OEM markets, including a new SDIO card to be sold to its OEM customers. AmbiCom believes there are unique opportunities as a result of the sheer size of the wireless healthcare market and the Company-s innovative approach and exemplary customer services. AmbiCom also designs and develops wireless home medical devices for non-health care applications for the retail market that are expected to be introduced during the next fiscal year, including solar ionic toothbrushes that in general utilize light to activate an ionic process to remove plaque. The Company also expects to continue to expand on its non-recurring engineering projects. For more information, visit .
This press release contains “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. Although forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements, including but not limited to our ability to maintain our website and associated computer systems, our ability to generate sufficient market acceptance for our products and services, our ability to generate sufficient operating cash flow, and general economic conditions. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the Securities and Exchange Commission from time to time which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one of more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
J.J. Hwang
AmbiCom Holdings Inc.
(408) 321-0822 x301
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