PISCATAWAY, N.J., June 23, 2020 (GLOBE NEWSWIRE) -- Hammer Fiber Optics Holdings Corp (OTCQB: HMMR) announced operating and financial results for the third quarter ended April 30, 2020. “This is a challenging time for the entirety of the globe,” said Erik Levitt, Hammer’s CEO. “The novel coronavirus has changed the way we interact, work, play, and communicate. It has changed everything in our daily lives. The impact on our way of life, and on the infrastructure that we need to support that new way of life is unprecedented.”
Due to global conditions there were delays in projects in Huntsville and Dominica, but both projects have now resumed. Hammer increased the reach of its SMS network, announcing a partnership with Telefonica and continued to build out its mobile origination footprint which now includes California, Texas, Florida, New York and Mississippi. Hammer’s management anticipates that these services will make a more substantial contribution to revenue in future quarters.
The company advanced its “Over-the-Top” (“OTT”) infrastructure by developing a suite of services to enhance remote workforce and video conferencing capabilities as well as products targeting consumer privacy by leveraging its status as a mobile network operator. The first applications are already in final tests and announcements on the full breadth and scope of the application suite will be forthcoming.
During the period Hammer discontinued the operations of its subsidiary Open Data Centers, LLC, which operated a data center facility in Piscataway, NJ, resulting in more streamlined financial operations.
Key financial results include:
- Total revenues for the quarter decreased to $388,900 from $888,395, a 56.20% decrease versus the same quarter in the prior year. This is primary due to the discontinuation of Endstream Communications’ Toll Free Termination business and the Open Data Centers business unit.
- EBITDA loss, inclusive of Open Data Centers’ in the period ended April 2019, decreased to ($64,369) from ($150,065), an improvement of 57.09%. This is primarily due to the discontinuation of the Endstream Communications’ Toll Free Termination business and the Open Data Centers business unit.
- In May 2020 Hammer received an $88,000 loan under the Paycheck Protection Program. It has met the obligations of the note and expects to file for forgiveness.
- Hammer has not yet drawn down any funds from the Peak One equity line of credit.
Hammer Fiber Optics Holdings Corp. (OTCQB:HMMR) is a telecommunications company investing in the future of wireless technology. Hammer’s “Everything Wireless” go to market strategy includes the development of high-speed fixed wireless service for residential and small businesses using its wireless fiber platform, Hammer Wireless® AIR, Over-the-Top services such as voice, SMS and video collaboration services, the construction of smart city networks and hosting services including cloud and colocation. For more information contact our Investor Relations Team at [email protected].
Forward Looking Statements
This press release contains projections and other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.