ERF Wireless, provider of wireless and broadband solutions to enterprise, commercial and residential clients on a regional, national and international basis, announced after the closing bell today that its financial and operational posture has undergone significant improvement. These positive changes come as the company’s Energy Broadband subsidiary experiences a significant increase in customer requests for service throughout North American oil and gas markets as well as internationally.
The recent sale of two of the ERF Wireless WISP networks not only resulted in more than three million dollars of liquidity, but also significantly reduced ERF Wireless’ overall employee payroll costs, bandwidth costs, tower rents, and many other operational costs. According to the company, much of the ERF Wireless balance sheet debt has now been eliminated and any remaining debt is mostly long term in nature.
Dr. H. Dean Cubley, CEO of ERF Wireless, commented, “I’m very pleased to report to our shareholders that the potential that ERF Wireless has long seen in our oil and gas business has now become a reality. In addition, our other business units have now been streamlined and are continuing to produce revenue in multiple business sectors. The ERF Wireless business plan to have a balanced mixture of wireless broadband revenue from oil and gas, WISP, banking, education, and health care is firmly in place; although, in the current economic environment, the oil and gas and WISP segments have recently represented the majority of the revenue.”
He continued, “We now see our oil and gas revenue surging as we also reduce our overall operational costs and increase our cash liquidity. If the current trends continue, these factors should significantly improve the potential for ERF Wireless to soon achieve our short term objective of becoming cash flow positive and ultimately achieve overall profitability.”
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