LOUISVILLE, Ky., March 27, 2007 (PRIME NEWSWIRE) -- US Wireless Online (Pink Sheets:UWRL), one of the nation's largest wireless broadband network operators, announced today that it has accomplished several significant operational objectives during the first 90 days after its sale of 50.1% ownership to Sutioc Enterprises, Inc.
On December 27, 2006, US Wireless completed the sale of a 50.1% ownership stake to Sutioc. In conjunction with the transaction, Sutioc and US Wireless entered into an agreement with IElement Corporation, (OTCBB:IELM) (Frankfurt:SZQ1) (Frankfurt:IELM) whereby IElement began providing management and support services to US Wireless. Under the agreement, IElement quickly moved to provide integrated customer service, technical support, network management, accounting, billing and collection services and began acting as an advisor to the US Wireless management team. At the time of the sale, Sutioc and US Wireless were able to retire over $3.5 million in US Wireless' debt.
The initial goal of the transaction was to stabilize the Company's business by eliminating operating losses and improving performance levels (through the integration of operational/network management and support functions with those of IElement) in order to position US Wireless for future growth.
As a direct result of the management agreement, the following objectives have been achieved during the past 90 days.
Expense Reductions:
1) Telecom vendor accounts have been consolidated and streamlined
from 41 to 7 active vendors;
2) Monthly telecom vendor expenses have been reduced by 66%, from
approximately $60,000 to approximately $20,000 ($360,000 annual
savings);
3) Three tower sites have been eliminated through consolidation saving
approximately $3,000 per month ($36,000 annual savings);
4) Monthly insurance expenses have been reduced by 57%, from
approximately $16,000 to approximately $7,000 ($108,000 annual
savings);
5) Office space, rent and payroll expenses have also been reduced
through consolidation. (Certain network, support and operational
functions have been centralized in Dallas, TX with satellite
offices remaining in the Company's four primary markets, KY, FL,
MS and PA);
6) As a result of these and other initiatives, the Company's
annualized operating expenses have been reduced by over $504,000.
Accounting Systems and Practices:
1) Accounting system/data has been migrated to NetSuite (which
provides enterprise level features; push button financial
statements; a direct link to the Company's Customer Management
System (CMS) to sync with other customer databases; secure
internet access for satellite offices; real-times updates;
automatic and secure daily backups; etc.);
2) Bank accounts have been consolidated from four banks to one and
sub-accounts have been established for specific purposes (all
accounts are accessible, serviced and monitored online);
3) Daily reconciliations and other "check and balance" procedures
have been initiated including daily accounts receivable
reconciliation with NetSuite and CMS; daily accounts payable
tracking of vender payments, invoices, dispute status, etc.; daily
bank balance reconciliation; significant P&L changes are tracked
daily and discussed frequently; document, email and voicemail
retention and distribution policies have been initiated; documents
(contracts, invoices, etc.) are now stored digitally and can be
securely accessed from satellite offices; all physical documents
and US mail are now stored in/routed to a central location, rather
than multiple cities, etc.;
4) New auditors have been engaged and are preparing the Company's
2006 annual audit. US Wireless and IElement accounting personnel
have been working together and with the Company's auditors to
prepare and review the three quarterly statements due for 2006.
These reports are expected to be filed as they are completed
during the upcoming weeks.
Operational Improvements and Efficiencies:
1) The Company's customer database has been migrated from Platypus
to CMS (a proprietary, fully integrated customer management
system). CMS provides a centralized system, securely accessible
from all satellite offices, for trouble ticketing, billing,
circuit detail, service options, etc.;
2) 24 x 7 customer support and a centralized support call queue have
been initiated;
3) Employees in all markets have been issued Blackberrys and, as
needed, budgeted debit cards for expense tracking.
Technical/field support personnel are being trained on the new
centralized system for trouble/service ticket management and are
now participating in a Company wide status queue;
4) A full network audit is nearly complete. This process will ensure
that every US Wireless customer is in the centralized database for
support, account management, billing, service level monitoring, etc.
"While the last 90 days have represented a period of great activity and resulting challenges, we are now beginning to experience the benefits," commented Rick E. Hughes, CEO of US Wireless Online, Inc. "Significant operational, management and administrative changes always create a degree of uncertainty within an organization. As a whole, our employees have done an exceptional job of rising to the challenges created by this new environment and, as a result, have made these critical accomplishments possible."
"Measurable progress has been made toward the goal of stabilizing the Company's business and we're looking forward to the opportunity to launch several initiatives aimed at revenue/market growth in the near future," continued Hughes. "There are many challenges still ahead, but US Wireless is now better positioned to manage, operate and grow its business."
About US Wireless Online:
US Wireless Online owns and operates one of the nation's largest wireless Internet broadband networks with significant coverage areas in Alabama, Florida, Indiana, Kentucky, Mississippi and Pennsylvania. The Company provides commercial wireless Internet access and related applications and services in the rapidly growing wireless broadband industry. US Wireless Online is headquartered in Louisville, Kentucky. On December 27, 2006, US Wireless completed the sale of a 50.1% ownership stake to Sutioc Enterprises, Inc. In conjunction with the transaction, Sutioc and US Wireless entered into an agreement with IElement Corporation, Inc. (OTCBB:IELM) (Frankfurt:SZQ1) (Frankfurt:IELM) whereby IElement began providing management and support services to US Wireless. Under the agreement, IElement provides integrated customer service, technical support, network management, accounting, billing and collection services and acts as an advisor to the US Wireless management team. For more information on US Wireless Online, Inc. please visit www.uswo.net.
This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) our limited operating history; (2) our ability to pay down existing debt; (3) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (4) unforeseen costs and expenses; (5) potential litigation with our shareholders and/or former or current investors; (6) the Company's ability to comply with federal, state and local government regulations; and (7) other factors over which we have little or no control.