Redline Communications Reports 2022 First Quarter End Results

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Quarterly Revenues up 15% Year over Year to $4.3 Million

TORONTO – May 12, 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 first quarter ended March 31, 2022.

All figures are in US Dollars unless otherwise noted.

  • Quarterly revenues increased $0.6 million or 15% compared to Q1 2021 to $4.3 million.
  • Q1 2022 gross margin was 54% compared to 48% for Q4 2021.
  • Over 75% of revenues were fulfilled via distribution and reseller partners, an increase from 60% in Q4 2021.
  • Bookings1 of $3.4 million in Q1 2022 increased by 2% compared to Q1 2021.
  • Backlog1 increased to $12.5 million at the end of Q1 2022, an 11% increase compared to $11.3 million at the end of Q1 2021.
  • Net loss of $2.7 million, as compared to a net loss of $1.2 million in Q1 2021.
  • Adjusted EBITDA1 loss was $1.7 million in Q1 2022 compared to losses of $1.4 million in Q4 2021 and $1.1 million in Q1 2021 due mainly to non-recurring costs related to the proposed transaction with Aviat Networks Inc.

Financial and Business Review

Gross margin of 54% in Q1 2022, up from the 48% achieved in Q4 2021, mainly as the result of a decrease in the inventory provision required in Q1 2022. Gross margin was down 15% compared to Q1 2021 as a result of both inventory provisions recorded and sales mix achieved in the current quarter.

Total operating expenses for Q1 2022 were $4.3 million, down $0.1 million from Q4 2021 and up $0.4 million compared to Q1 2021 due to non-recurring professional fees associated with the Aviat transaction (announced April 13, 2022) that were in incurred in Q1 2022.

Adjusted EBITDA loss for Q1 2022 was $1.7 million, an increase of $0.3 million from Q4 2021 due to the Aviat transaction costs and $0.6 million from Q1 2021 due to the Aviat transaction costs but also a lower gross profit compared to the prior year due to the product sales mix.

Due to the transaction in progress between Redline Communications Group Inc. and Aviat Networks Inc. (announced on April 13, 2022), Redline will not be holding an earnings call to discuss the Q1 2022 results.

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]
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 can be found in the Company’s Management Discussion and Analysis for the three months ended March 31, 2022 (“Q1 2022 MD&A”), copies of which are available on SEDAR at and a reconciliation to their closest IFRS measure is set forth below,. Further details on the three months ended March 31, 2022, 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 months ended March 31, 2022, and the Q1 2022 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.