World Reach (ASX:WRR) has achieved a net increase in cash for...

World Reach (ASX:WRR) has achieved a net increase in cash for the quarter of $684,000, with sales revenue of $3.8 million.

The company's flagship technology is a device that allows satellite communication from smartphones.

A strong level of continuing business in existing products with core global distributors was achieved, however total sales of new products was lower than anticipated due to production delays.

Trading operations in September quarter were profitable with profit margins as forecast; a net operating outflow resulted from the timing of customer receipts and the repayment of extended credit from suppliers.

The shortfall in sales in the September quarter will be caught up in October and November, and additional sales following the second order of the newly developed product are expected by 31 December 2014.

The company is also preparing a $1.8 million tax refund application in relation to development work during the previous financial year.

WRR completed a $2.4 million rights issue in July, priced at $0.15.

Following the rights issue, all interest bearing debt was repaid during August, providing an improved balance sheet and interest savings.

Combined with the anticipated continuation of profitable trading, operations are expected to deliver positive cash flow for the remainder of the financial year.

The cash position at 30 September 2014 was $639,000 in addition to undrawn financing facilities of $472,000.

The company is capped at around $8 million and could be an emerging growth story.