SCIENCE

Tranzeo Wireless Technologies has announced its financial results for the second quarter 2010.

Acquisition of Aperto Networks:

·         Tranzeo acquired Aperto Networks on April 16, 2010 which now positions Tranzeo to provide a complete WiMAX solution for major telecommunications providers.

Financial Highlights:

·         Revenue was $5.1 million compared with $3.3 million year over year.

·         Gross profit was $1.5 million compared with $1.0 million year over year

·         EBITDA (excluding stock based compensation) was a loss of $1.9 million for 2010, compared to a loss of $0.1 million for 2009. The increase in the loss was the result of merging the operations of Aperto with Tranzeo, one time acquisition costs of $0.4 million and expensing all research and development costs in 2010 versus capitalizing those costs as deferred costs in 2009. The amount capitalized in 2009 was $0.8 million.

·         The maximum potential earn out position for the acquisition of Aperto was required to be recorded under Canadian GAAP. The maximum potential shares are 9. 1 million and are valued at $1.618 resulting in an earn out value of $14.7 million. This value, along with the net liability position of Aperto, which included debt that was converted to equity subsequent to the acquisition , resulted in technology rights that was recorded as an asset at $19.6 million. This is being amortized straight line over five years.