Baylin Reports 2017 Revenue Increase of 8.9% and Adjusted EBITDA Increase of 173%

TORONTO, Feb. 28, 2018

• Revenue in 2017 was $91.6 million; an 8.9% increase from the prior year.
• Gross profit grew to $28.3 million in 2017, compared to $23.5 million in 2016.
• Adjusted EBITDA was $5.0 million in fiscal 2017, compared to Adjusted EBITDA of $1.8 million in the prior year.
• Revenue and gross profit increased in the fourth quarter of 2017 by 21.8% and 24.6%, respectively, as compared to the same period in fiscal 2016.
• Adjusted EBITDA in the fourth quarter of 2017 was $1.3 million, representing the eighth consecutive positive quarter.

TORONTO, Feb. 28, 2018 /CNW/ - Baylin Technologies Inc. (TSX: BYL) (the "Company" or "Baylin"), a diversified leading global wireless technology management company that focuses on research, design, development, management and sales of passive and active RF products and services, today announced its financial results for the three and twelve months ended December 31, 2017. All figures are stated in Canadian dollars ("CAD") unless otherwise noted.

Key highlights for the twelve months ended December 31, 2017:

• Revenue grew to $91.6 million in fiscal 2017, an increase of 8.9% over the prior year.
• Gross profit grew to $28.3 million in fiscal 2017, an increase of 20.6% compared to gross margin in fiscal 2016 (See Non-GAAP Measures on page 2 of the Company's management's, discussion and analysis ("MD&A") which is available on SEDAR at www.sedar.com).
• Adjusted EBITDA was $5.0 million in fiscal 2017, compared to Adjusted EBITDA of $1.8 million in the prior year. Certain non-recurring and one-time expenses ("non-recurring items") of $2.6 million were incurred in fiscal 2017 (see "Non-GAAP Measures" on page 2 of the MD&A).
• Net loss was $4.2 million in fiscal 2017. Net loss, adjusted for non-recurring items was $1.6 million (see "Non-GAAP Measures" on page 2 of the MD&A).
• Liquidity improved by issuing common shares in the capital of the Company for gross proceeds of $19.8 million. Cash and cash equivalents increased from $18.5 million in fiscal 2016 to $35.2 million in fiscal 2017.
• The Base Station and Small Cell sales team expanded through the hire of four additional sales people with antenna industry experience in this market. The reconstructed sales team has already made several positive inroads with new customers, which includes new master purchase agreements and new product approvals. These changes resulted in a 34.8% increase in revenue from infrastructure products ("Infrastructure") over the prior year.

Key highlights for the three months ended December 31, 2017 include the following:

• Revenue and gross profit increased in the most recent quarter by 21.8% and 24.6%, respectively, as compared to the same period in fiscal 2016.
• Adjusted EBITDA in the fourth quarter of 2017 was $1.3 million, representing the eighth consecutive positive quarter, compared to Adjusted EBITDA of $0.1 million in the fourth quarter of fiscal 2016.

Randy Dewey, President and Chief Executive Officer commented, "We are very pleased with the Company's financial results for 2017.  As we reported in Q3, Q4 is typically not as strong as Q3, however, revenue increased by 21.8% compared to the same period in fiscal 2016 and we have taken the positive momentum created in the second half of 2017 into 2018."

SELECTED FINANCIAL INFORMATION

The table below discloses selected financial information related to income and balance sheet items over the past three fiscal years.