Shares of ERF Wireless Inc. (OTCBB: ERFW) are up 8 cents, or 12 percent, to 73 cents this morning as shareholders chew on news that the company obtained a 526 percent increase in revenue for the second quarter of 2007, as well as a reduction in net loss.
In a statement today, the company reported its revenue at $2.4 million, up from $387,000 the same period last year. The company partially attributed the increase to its progression with its El Dorado Golf and Beach Club project in San Jose del Cabo, Mexico.
“I am pleased with the results that our management team and employees have achieved across all our business units in the second quarter. Moreover, in addition to the 526 percent increase in revenue this quarter, the timing of our second quarter report doesn’t allow us to fully reflect in this 10Q the significant progress we’ve already made this year in securing numerous bank network contracts and in designing and developing our U.S.-BankNet system; a secure enterprise-class wireless network for the banking industry. With a sound backlog of contracts already in place, the company is also well-positioned to achieve solid revenue growth in the second half of 2007,” Dr. H. Dean Cubley, CEO of ERF Wireless, said in a statement.
The company also reported that its loss from operations for the second quarter was 48 percent lower than last year, posted at $751,000, as compared to a loss from operations of $1.4 million in the second quarter of 2006.
Four divisions comprise the wireless broadband service provider: Enterprise Network Services, Wireless Messaging Services, Bundled Wireless Services and Network Operations. Utilizing these divisions, the company works toward building additional wireless networks through acquisitions, partnerships and new construction. According to the company’s Web site, it believes broadband networks will someday act as a “third pipe” as an alternative and extension of the two main methods of high-speed connectivity, DSL and cable modem services.
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