Redline Communications Reports 2021 Fourth Quarter and Year End Results

Redline Communications Reports 2021 Fourth Quarter and Year End Results

Quarterly Revenues increased by 25% with a $13.6 Million Backlog: $7.5 million of Bookings at 3-year high

TORONTO, March 30, 2022 – Redline Communications Group Inc. (TSX: RDL), a leading provider of mission-critical data infrastructure for remote & harsh environments, today announced operating results for the fourth quarter and year ended December 31, 2021. 

All figures are in US Dollars unless otherwise noted.

  • Quarterly Revenues increased 13% to $5.9 million from $5.2 million in Q3 2021 and increased $1.2 million or 25% compared to Q4 2020.
  • Annual revenues increased by 6% to $19.5 million in 2021 compared to $18.5 million in 2020
  • Q4 2021 Gross margin was 48% compared to 52% for Q4 2020 and 66% for Q3 2021.
  • Over 60% of revenues were fulfilled via distribution and reseller partners, a slight sequential decrease from the over 70% in Q3 2021.
  • Bookings of $7.5 million in Q4 2021 increased by 19% compared to Q3 2021 , which was the highest bookings achievement in a quarter since Q4 2018
  • Backlog increased to $13.6 million at the end of Q4 2021, a 9% sequential increase compared to $12.5 million at the end of Q3 2021.
  • Adjusted EBITDA loss was $1.4 million in Q4 2021 compared to losses of $0.2 million in Q3 2021 and $1.6 million in Q4 2020.
  • Redline also closed a CAD$ 7.0 million term loan facility in Q4 2021.

“We are pleased to report quarter over quarter and year over year improvements in revenues, gross profit and backlog coupled with our highest quarterly bookings in three years,” stated Richard Yoon, Chief Executive Officer. “The increase in revenues, backlog and bookings are all positive signs that customers are ramping up their digital transformation plans, which we expect to drive demand for Redline solutions in the coming quarters. We are also excited to close a significant term loan financing in the quarter ensuring we have the liquidity to continue developing new 5G solutions that the market is demanding.”

Financial and Business Review

Gross margin of 48% in Q4 2021 was down 18% percentage points from Q3 2021 due to the Company taking a $730,000 provision against all remaining TV White Space (“TWS”) inventory in the quarter.  TWS has been written down to zero and is an insignificant component of the Company’s revenue in the recent past and going forward.  Further write downs relating to TWS will not occur. In the absence of the provision, gross margin would have been 61% for the quarter. 

Total operating expenses for Q4 2021 were $4.4 million, an increase of 2% compared to $4.3 million in Q4 2020 and up $0.5 million or 13% sequentially from Q3 2021.   The quarter over quarter increases are mainly due to transaction costs associated with the financing as well as annual variable compensation costs that are expensed in Q4 of each year. 

Adjusted EBITDA loss for Q4 2021 was $1.4 million, an increase of $1.2 million from Q3 2021 due to the additional inventory provision taken against the TV White space inventory and annual variable compensation costs.   Adjusted EBITDA for Q4 2021 is an $0.2 million improvement over Q4 2020.


Conference Call and Webcast – March 30, 2022, at 10:00 a.m. ET


A conference call and webcast to discuss the results has been scheduled. Details are below:

When: Wednesday, March 30, 2022, at 10:00 a.m. Eastern Time. 

Dial in 1-416-764-8659 approximately 10 minutes before the conference call.

Passcode 68004202. 


A recording of the call will be available through April 6, 2022, on Redline’s website or by dialing 1-416-764-8677 and entering the passcode 004202#.


About Redline Communications

Redline Communications (TSX:RDL) designs and manufactures powerful wide-area wireless networks for mission-critical applications in challenging locations. Redline networks are used by oil & gas companies onshore and offshore, mining companies on surface and underground operations, by municipalities to remotely monitor infrastructure, and by specialized telecom service providers to deliver premium services. Hundreds of businesses worldwide rely on Redline to engineer, plan and deliver ruggedized, secure and reliable networks for their IoT, voice, data, and video communications needs in locations that include the deserts of the Middle East, the rainforests of South America, and the frozen Alaskan slopes. For more information visit 


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Redline Contact(s) 

Richard Yoon

Chief Executive Officer


[email protected]


Philip Jones

Chief Financial Officer


[email protected]


Investor Relations Contact 

Ron Shuttleworth


Oak Hill Financial


[email protected]


  1. To better assess the health and growth of the Redline’s business, the Company reports certain non-IFRS metrics, including “Bookings”, “Order Backlog”, “Adjusted EBITDA” and “Adjusted EBITDA Margin”. Further information including definitions of these measures and a reconciliation to their closest IFRS measure, if applicable, can be found in the Company’s Management Discussion and Analysis for the three and twelve months ended December 31, 2021 (“Q4 2021 MD&A”), copies of which are available on SEDAR at Further details on the three and twelve months ended December 31, 2021, can be found in the condensed consolidated  statement of financial position, statement of comprehensive loss, statement of changes in equity and statement of cash flows reproduced at the end of this press release. The selected financial information included in this release is qualified in its entirety by, and should be read together with the condensed consolidated financial statements of the Company for the three and twelve months ended December 31, 2021, and the Q4 2021 MD&A.

Forward Looking Statements

Certain statements in this release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking statements can be identified by terms such as “could”, “expect”, “may”, “will”, “anticipate”, “believe”, “intend”, “estimate”, “plan”, “potential”, “project” or other expressions concerning matters that are not historical facts. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements, by their nature, are based on certain assumptions regarding expected growth, management’s current plans, estimates, projections, beliefs, opinions and business prospects and opportunities (collectively, the “Assumptions”). While the Company considers these Assumptions to be reasonable, based on the information currently available, they may prove to be incorrect.


Many risks, uncertainties and other factors could cause the actual results of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the following: significant competition, competitive pricing practices, cautious capital spending by customers, industry consolidations, rapidly changing technologies, evolving industry standards, frequent new product introductions, short product life cycles and other trends and industry characteristics affecting the telecommunications industry; any material, adverse effects on Redline’s performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline’s suppliers and contract manufacturing agreements including the Company’s reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline’s current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline’s efforts to expand internationally; a failure to protect Redline’s intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; and Redline’s potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy (collectively, the “Risks”). 


For additional information on these Risks, see Redline’s most recently filed Annual Information Form (“AIF”) and Annual MD&A, which are available on SEDAR at and on the Company’s website at Redline assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law. All forward looking statements contained in this release are expressly qualified in their entirety by this cautionary statement.