2010 ANNUAL REPORT - Webtech Wireless

MANAGEMENT’S DISCUSSION & ANALYSISFor the year ended December 31, 2010This document is dated March 23, 2011Summary Of Results Of OperationsDecember 31,2010December 31,2009Variance($)Variance(%)Hardware $14,576 $12,439 $2,137 17%Recurring services, software and other 26,801 14,778 12,023 81%Total Revenue 41,377 27,217 14,160 52%Cost of goods sold 20,763 13,057 7,706 59%Gross margin 20,614 14,160 6,454 46%50% 52%ExpensesSales and marketing 8,931 7,665 1,266 17%Research and development 8,644 5,945 2,699 45%General and administrative 8,415 7,657 758 10%Amortization 3,072 1,052 2,020 192%29,062 22,319 6,743 30%Loss before other expenses(earnings) and income tax(8,448) (8,159) (289) 4%Other expenses (earnings)Interest and other expenses (earnings) 44 (81) 125 -154%Foreign exchange loss on operations 533 1,141 (608) -53%Stock-based compensation from cancelled stock options 620 - 620 100%Restructuring costs 1,550 1,461 89 6%Impairment of Intangible Assets 4,183 - 4,183 100%Loss on sale of long term investments - 50 (50) -100%Loss before income taxes (15,378) (10,730) (4,648) 43%Income tax expense (recovery)Current 30 153 (123) -80%Future (1,119) (158) (961) 608%(1,089) (5) (1,084) 21680%Net and comprehenisve loss for the period $(14,289) $(10,725) $(3,564) 33%EBITDAS $(5,525) $(7,742) $2,217 -29%EBITDAS is a non-GAAP measure and is therefore not universally defined. EBITDAS differs from Earnings in precisely the way itsname suggests and in addition excludes foreign exchange loss on operations; impairment of intangible assets, gain on restructuringof long term investments and loss on sale of long term investments.(Dollar amounts in 000’s except number of shares and per share amounts)13