Redline Communications Reports 2021 Third Quarter Results

TORONTO – Nov. 11, 2021 – Redline Communications ( Group Inc. (TSX: RDL), a leading provider of mission-critical data infrastructure for remote & harsh environments, today announced operating results for the third quarter ended September 30, 2021.

All figures are in US Dollars unless otherwise noted.

  • Revenues increased 9.3% to $5.2 million from $4.7 million in Q2 2021 and decreased $0.04 million from Q3 2020.
  • Q3 2021 Gross margin was 66% compared to 52% for Q3 2020 and 61% for Q2 2021.
  • Over 70% of revenues were fulfilled via distribution and reseller partners.
  • Bookings $6.3 million in Q3 2021 an increase of 20% from Q2 2021 reflecting sales momentum since the beginning of the year.
  • Backlog increased to $12.5M at the end of Q3 2021 (up from $11.8M at Q2 2021).
  • Adjusted EBITDA loss improved to $195,000 in Q3 2021 compared to losses of $668,000 in Q2 2021 and $409,000 in Q3 2020.

“We are pleased to report quarter over quarter improvements in cash, revenues, bookings, backlog, EBITDA and net profit,” stated Richard Yoon, Chief Executive Officer. “The company has made great strides this past quarter in driving revenue growth while also increasing gross margin to 66%, a dramatic improvement over the 52% achieved in the same quarter last year. I am extremely encouraged by the current market conditions and the increase in deployments from our customer base. Coming out of the softness in the business caused by the COVID pandemic, we are seeing more customers ramping up their digital transformation plans, which we expect to be a key driver of product demand in the coming quarters”.

Financial and Business Review

Gross margin of 66% in Q3 2021 was up 5 percentage points from Q2 2021 and up substantially from 52% in Q3 2020. The changes are primarily due to changes in sales mix.

Total operating expenses for Q3 2021 were $3.9 million, up 12% from $3.5 million in Q3 2020 and flat compared to Q2 2021. The year-over-year increase was due primarily to increased expenses in R&D related to new product development as well as increased sales costs associated with the increase in gross profit.

Adjusted EBITDA loss for Q3 2021 was $0.2 million, an improvement of $0.5 million and $0.2 million compared to Q2 2021 and Q3 2020 respectively.

Net loss improved from $0.7 million in Q2 2021 and $0.4 million in Q3 2020 to $0.1 million in Q3 2021.

Conference Call and Webcast – November 11, 2021 at 10:00 a.m. ET

A conference call and webcast to discuss the results has been scheduled for Thursday, November 11, 2021 at 10:00 a.m. Eastern Time. To participate, please dial 1-416-764-8659 approximately 10 minutes before the conference call and provide passcode 37221496. A recording of the call will be available through November 18, 2021 on Redline’s website or by dialing 1-416-764-8677 and entering the passcode 221496.

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 Contacts:

Richard Yoon
Chief Executive Officer
[email protected]

Philip Jones
Chief Financial Officer
+1 (905) 479-8344
[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 nine months ended September 30, 2021 (“Q3 2021 MD&A”), copies of which are available on SEDAR at Further details on the three and nine months ended September 30, 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 nine months ended September 30, 2021 and the Q3 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.