xG Technology Reports Third Quarter 2015 Results

SARASOTA, Fla., Nov. 16, 2015 /PRNewswire/ -- xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a developer of wireless communications and spectrum sharing technologies, announced its results for the third quarter ended September 30, 2015.

Key Recent Accomplishments

• Entered into a partnership with GlobalMedia Group, LLC ("GlobalMed") to market integrated health delivery systems that incorporate xG mobile broadband technology and GlobalMed's telemedicine hardware, devices and software. The xMax Telemedicine Network Solution ("xMax TMN") facilitates the immediate and reliable transmission of critical health information, multimedia medical applications, and lifesaving services to locations that are difficult to reach or have limited communications options available. It consists of a rapidly-deployable, easy-to-install, turnkey mobile network solution that provides a secure, two-way telemedicine communications infrastructure.
• Received an order from the U.S. State Department valued at approximately $200,000, for xMax mobile broadband wireless networking equipment and associated support services. The equipment will provide essential communications to assure the safety of U.S. government personnel serving in Mexico, their families, and U.S. citizens in Mexico during disaster events.
• Received an order from a Department of Defense agency for xMax mobile broadband wireless equipment and services. The equipment will be used for additional testing and validation of xMax as a mobile tactical data communications system in response to specific technology objectives.
• George Schmitt, Chief Executive Officer and Chairman of the Board of Directors of xG, converted $500,000 of existing loans due from the Company into shares of the Company's common stock at a price of $0.56 per share, the high bid price of the Company's common stock on October 6, 2015, the day prior to the conversion, as reported by the Nasdaq Capital Market. The balance of the loans due from the company to Mr. Schmitt remain senior secured and rank pari passu with other existing senior secured debt of the Company. Mr. Schmitt also indicated his intention to purchase modest quantities of additional shares of xG common stock from time to time through open market transactions.
• Introduced the xMax NOW Network on Wheels™ transportable broadband wireless system. xMax NOW, which is available for customer shipments, has everything needed to establish instant, wide-area mobile communications capabilities in a roll-out format. xG specifically designed xMax NOW to meet the rapid-deploy requirements of emergency response, homeland security, law enforcement, military and private entities.
• Expanded its Business Partner Program in development of an ecosystem of resellers, system integrators, consultants, and other technology vendors to offer products and services that are complementary to the xMax mobile broadband wireless network solution. The goal of the xG Business Partner Program is to maximize the emerging market opportunity in private mobile wireless broadband for voice, video, and data communications.
• xMax private mobile broadband wireless networks was found to deliver superior interference tolerance capabilities compared to current, commercially available communications systems in a report prepared by Paul Kolodzy, PhD that can be viewed at this link.
• Completed an underwritten public offering of Class A Units, Class B Units, Series C Warrants and Series D Warrants. The Company received approximately $4,975,500 in gross proceeds from the offering, before underwriting discounts and commissions and offering expenses payable by the Company.
• Completed a 1-for-10 reverse split of its common stock at 5:00 p.m. Eastern Time on Friday, July 17, 2015.

George Schmitt, CEO and Chairman of the Board of xG Technology, said, "Over the coming months, our objective is to reinforce the recent traction xG has made with the U.S. Departments of Defense and State in order to extend this progress in both military and commercial markets. We are supporting our sales and marketing efforts with industry-specific partnerships, such as telemedicine, to reach decision makers in key end markets where our flexible xMax solution, robust in both fixed and mobile applications, can bring immediate relief to an existing need. We continue to focus on leveraging our unique competitive strengths to monetize our large market opportunity."

Review of Results

Total third quarter 2015 revenues were $189,000 compared to $150,000 revenue in the third quarter of 2014. Revenue generated from equipment sales totaled $172,000 and revenue from engineering services and a consulting services agreement totaled $17,000. Related party revenue was $4,000 in the quarter.

Third quarter operating loss was $3.8 million compared to operating loss of $4.2 million in the third quarter of 2014.

Net loss was $3.1 million, or $(0.42) per share compared to $4.3 million, or $(1.77) per share in the third quarter of 2014.

Weighted average number of shares outstanding for the quarter ended September 30, 2015 was 7.3 million compared to 2.4 million for the quarter ended September 30, 2014. As of September 30, 2015, all outstanding shares of the Series, A, Series B and Series C Preferred Stock have been fully converted.

xG ended third quarter 2015 with $1.1 million in cash compared to $758,000 at December 31, 2014.

On August 19, 2015, the Company closed its underwritten public offering of its Class A Units, Class B Units, Series C Warrants and Series D Warrants. The Company offered (i) 2,550,000 Class A Units, at a price of $1.00 per Class A Unit, each of which consists of one share of its common stock and 0.5 of a Series A Warrant to purchase one share of its common stock at an exercise price of $1.00 per warrant, (ii) 2,450,000 Class B Units, at a price of $0.99 per Class B Unit, each of which consists of one pre-funded Series B Warrant to purchase one share of its common stock and 0.5 of a Series A Warrant, (iii) 2,550,000 Series C Warrants, at a price of $0.01 per Series C Warrant, which is deemed to be included in the $1.00 price per Class A Unit, each to purchase one additional Class A Unit at an exercise price of $1.00, and (iv) 4,950,000 Series D Warrants, at a price of $0.01 per Series D Warrant, which is deemed to be included in the $0.99 price per Class B Unit, each to purchase one additional Class B Unit at an exercise price of $0.99. The Company received approximately $4,975,500 in gross proceeds from the offering, before underwriting discounts and commissions and offering expenses payable by the Company.

About xG Technology

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. The company is the developer of xMax, a patented all-IP cognitive radio network system that enables secure, robust mobile broadband communications for private, consumer and government networks. xMax can solve the crisis facing the wireless industry caused by data-hungry devices and applications that are straining network capacity. It eliminates the need to acquire scarce and expensive licensed spectrum, thus lowering the total cost of ownership for wireless broadband access.

The xMax system delivers always-available voice, video and data services to both fixed and mobile users, and is interoperable with existing cellular and dedicated networks without being dependent on them. xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). These and other technologies make xMax ideal for wide area, as well as rapid emergency communication deployment in unpredictable environments and during fluid situations. xG offers solutions for numerous industries worldwide, including emergency response and public safety, military, urban and rural wireless broadband, utilities, and critical infrastructure.

Based in Sarasota, Florida, xG has over 50 U.S. and over 100 international patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market where xG common stock is traded under the symbol XGTI and xG warrants are traded under the symbol XGTIW. For more information, please visit www.xgtechnology.com.

Cautionary Statement Regarding Forward Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties.  These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

For More Information:

Media and Analyst Relations 
Daniel Carpini  
xG Technology 
www.xgtechnology.com  
(941) 953-9035

Investor Relations: 
James Woodyatt 
xG Technology 
www.xgtechnology.com    
(954) 572-0395   

Carolyn Capaccio/Jody Burfening 
LHA 
212-838-3777 
[email protected]         

SOURCE xG Technology, Inc.

Related Links

http://www.xgtechnology.com