Datacom Announces First Quarter 2008 Financial Results
May 15 2008 - 4:21PM
Marketwired
LAVAL, QUEBEC (TSX VENTURE: DAT), a Canadian leader in the
design, development and marketing of mission critical vehicle fleet
management and theft prevention and recovery solutions today
announced its financial results for the three-month period ended
March 31, 2008.
First Quarter Growth Highlights:
- During the quarter, the Company added:
- 29 new Mobicom clients (25 in 2007);
- 301 Mobicom units were sold (350 in 2007)
- 426 new Mobilus clients (382 in 2007);
- 2,812 new Mobiguard clients (1,395 in 2007);
- 180 new Vigil units;
- 2,676 Web-based fixed wireless management systems (Rosemount 753R with
ITraX) have been sold to date;
For the three-month period ended March 31, 2008, the Company
recorded revenue of $2.20 million compared to $1.66 million during
the same period last year, which represents a 32.3% increase in
revenues from 2007 first quarter figures. The revenues benefited
from the growth in the customer base that is generating recurring
revenues.
For the three-month period ended March 2008, the Company's
recurring revenues increased by 53.3% year-over-year from $0.75
million in the first quarter of 2007 to $1.15 million for the same
period in 2008. Recurring revenues represent 52.0% of total revenue
to date in 2008 compared to 45.2% of total revenue generated in the
first quarter of fiscal 2007.
The Company initiated a global review of its activities in the
first quarter with the objective aimed at better meeting the growth
and profitability targets that it had established. A detailed
analysis of its products, services and market will enable the
Company to formulate a plan of action focusing on:
- Upgrading the Mobicom product to respond better to customer
expectations with respect to use and functionality.
- Developing a Mobicom product with tiered services with price and
functionality attuned to a broader range of prospective clients.
- Focusing the R&D team's efforts over the next few months to meet the
goals for upgrading the Mobicom product.
- Developing a sales strategy to optimize the sales structure and to
acquire tools needed to maximize Mobicom sales.
- Reducing operating expenses. (In April 2008, the Company laid off
employees, resulting in annual savings estimated to be more than
$600,000. The Company will continue to review all activities to
optimize costs).
The Company's financial position as at March 31, 2008 is
healthy. Datacom had cash and cash equivalents of $4.59 million,
compared to $6.12 million as at December 31, 2007.
"We are pleased with the continuous growth of our revenues on
sales of the Mobicom product," noted Pierre Belanger, Acting
President and CEO of Datacom. "We plan to improve gross margins in
dollars and to optimize operating expenses, which will result in
increased revenues and earnings in the periods to come."
About Datacom Wireless Corporation:
Founded in 1999, Datacom has grown to become one of the Canadian
leaders in the design, development and marketing of mission
critical vehicle fleet management and theft prevention and recovery
solutions. Its products and services use wireless communications
and satellite-based tracking technologies (GPS) and a
state-of-the-art ASP information portal.
Datacom offers a portfolio of products and services for both
commercial and consumer markets. Mobicom(TM) solutions enable fleet
managers to view and track, 24-7 and in real-time, their vehicles
on a virtual map in addition to generating valuable internal
reporting data. Mobilus(TM) is a theft deterrent, detection and
stolen vehicle recovery system that permits real-time tracking and
recovery. Based on the Internet, this system enables the users to
track their vehicles at all times. Mobiguard(TM) is a stand-alone
wireless immobilizer for theft prevention and possesses a
revolutionary technology that immobilizes a vehicle by disabling
the starter circuit when a remote is not activated at the moment of
ignition. For further information, visit www.datacom.com.
Forward-Looking Statements:
This press release includes certain statements that may be
deemed "forward-looking statements". Forward-looking statements are
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate", and other
similar words, or statements that certain events or conditions
"may" or "will" occur. All statements in this release, other than
statements of historical facts, that address future events or
developments that the Company expects or anticipates, are
forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in forward-looking statements. Factors that
could cause actual results to differ materially from those in
forward-looking statements include market prices and general
economic, market or business conditions. There can be no assurance
that forward-looking statements will prove to be accurate, as
results and future events could differ materially from those
anticipated statements. The Company undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change. The reader is cautioned not to
place undue reliance on forward-looking statements.
All trademarks and brands mentioned in this Press Release are
the property of their respective owners.
Contacts: DATACOM Pierre Belanger, Acting President and CEO (+1)
450-781-6020 pbelanger@datacom.com
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