News: World Reach books $4.2M in sales via smart phone technology

World Reach (ASX:WRR) has delivered revenue for the June quarter of $4.2 million, a 50% increase on the previous quarter, with commencement in sales of new products from its latest development project, Iridium GO!.

On the 22nd May, WRR revealed that it's Iridium GO! product, a new style of satellite communication device providing satellite access via a smartphone, had commenced production.

Strong sales of existing products to core global distributors are expected to continue in September quarter.

With the addition of sales of recently developed Iridium GO! products, the company expects a profitable September quarter with favourable impact beyond.

Following completion of development work, the commencement of sales of developed products will allow repayment of loans and extended credit that were part financing the development.

World Reach will submit an Australian Government Research & Development Grant application in relation to development expenditure in the 2013/14 year, which totalled $1.8 million.

In addition, a rights issue was finalised on 28th July 2014 which raised $2.4 million for the repayment of expensive debt which had a maturity date of 1 July 2015.

Apart from a major improvement to the balance sheet, the interest saving will contribute to the expected positive cash flow of future periods.

The company is capped at around $10 million and could be an emerging growth story.