You can download our 22-page Edgewater Wireless Equity Research Report by clicking on the following link: eR-Edgewater-YFI-CR-2019_12_16_FINAL
Edgewater Wireless Systems, Inc. (“Edgewater” or “the Company”) develops and commercializes technologies and intellectual property (“IP”) with a focus on the wireless communications market. With over $60 million invested in product development and backed by a portfolio of 25 patents, Edgewater is a pioneer in the next generation of high-density Wi-Fi solutions. Utilizing Wi-Fi Spectrum Slicing technology, Edgewater has created a family of products and solutions under its MCSR™ (Multi-Channel, Single Radio) brand. With the explosive growth in Wi-Fi connected devices, a $33 billion market, Edgewater’s Spectrum Slicing solution enables multiple, concurrent data communication channels within a single coverage area, thereby delivering a more reliable Wi-Fi service, reducing congestion, and allowing more users on a single device.
Figure 1: Internet Traffic Flow Without and With MCSR™ Powered Dual Channel Wi-Fi
KEY UPCOMING CATALYSTS: PRODUCT & IP LICENSING
- Viewed as complementary to traditional implementations, such as Wi-Fi6, the Company’s primary focus is securing IP license deals from silicon companies to implement Wi-Fi Spectrum Slicing on their platforms. Depending on the terms of the contract, revenue could come from an upfront fee, a royalty for each device or module sold, as well as annual support fees. The potential market – nine billion Wi-Fi devices are in use with three billion new Wi-Fi devices shipped annually.
- A key driver for adoption is that recently, a global standard’s body, Cable Television Laboratories, Inc. (private; “CableLabs”; www.cablelabs.com), has validated Edgewater’s work in high-density Wi-Fi using multi-channel, Spectrum Slicing techniques. CableLabs, in collaboration with Edgewater, has developed a new Dual Channel Wi-Fi™ standard. This new standard is the first affirmation by a global standards body that one channel is not enough to meet the current Wi-Fi market needs for higher-density solutions.
- In the Enterprise market, we expect that the Company will deliver on the first phase of the Kroger (NYSE:KR) contract and continue product delivery for Mediacom’s (private) rollout.
- In the Residential market, we expect its two-pronged approach of selling into (1) terminal equipment providers, and (2) silicon vendors, could give rise to IP licensing deals with both groups that will result in upfront revenue in F2020 and royalty revenue in subsequent years.
We expect that Edgewater could be a potential takeover target by a Wi-Fi chip manufacturer or hardware provider (see Appendix A) who would want to acquire Edgewater’s patent portfolio and high-density Wi-Fi chip designs
THREE-YEAR REVENUE FORECAST:
For F2020, we expect that Edgewater could generate revenue between $0.25 million-$0.50 million, ramping up to $5 million-$10 million in F2021, and $13 million-$14 million in F2022.
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You can download our 22-page Edgewater Wireless Equity Research Report by clicking on the following link: eR-Edgewater-YFI-CR-2019_12_16_FINAL
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Edgewater Wireless (TSXV:YFI)
- www.edgewaterwireless.com
- Headquartered in Ottawa, Canada, Edgewater Wireless develops and commercializes technologies and intellectual property for the wireless communications market.
- With over $60 million invested in product development and backed by a portfolio of 25 patents, Edgewater is a pioneer in the next generation of high-density Wi-Fi solutions.
- Utilizing Wi-Fi Spectrum Slicing technology, Edgewater has created a family of products and solutions under its MCSR™ (Multi-Channel, Single Radio) brand.
- The Company’s primary focus is securing IP license deals from silicon companies to implement Wi-Fi Spectrum Slicing on their platforms.
- Edgewater Wireless is currently trading at $0.09 with a market cap of $14.4 million.
Figure 2: Edgewater 1-Year Stock Chart
