Cell-Loc Location Technologies Reports Major Revenue Growth
April 16 2008 - 6:50PM
Marketwired Canada
Cell-Loc Location Technologies Inc. (TSX VENTURE:LTI), reports annual revenue of
$3,303,000 in its Brazilian subsidiary, representing growth of 229% from the
prior year. During the year, the Company installed 33,785 Beacons, an increase
of 314% from the prior year's 10,762. As of December 31, 2007, there were 37,188
Beacons active in the network. The following is a summary of the beacon revenue:
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(in thousands of Canadian dollars) 2007 2006
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License revenue $ 0 $ 500
Service revenue 3,304 1,007
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Total revenue 3,304 1,507
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(#Beacons)
Installed 33,785 10,282
Churn (6,879) (490)
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New units billed 26,916 10,282
Units renewed 10,272 0
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Units in service 37,188 10,282
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During the year ended December 31, 2007 the Company incurred a net loss of
$8,105,000 (six cents per share) compared to a net loss of $5,632,000 (six cents
per share) for the year ended December 31, 2006. The following is a summary of
operations:
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(in thousands of Canadian dollars) 2007 2006
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Revenue $3,304 $1,507
Cost of sales 1,950 600
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Gross margin 1,354 907
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Operating expenses
General and administration 3,442 3,372
Operations 3,613 1,486
Marketing and business development 210 86
Depreciation, amortization and write-down of
assets 2,243 1,835
Foreign exchange, net interest and other (49) (240)
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Net loss $ (8,105) $ (5,632)
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Loss per share ($ per share) (diluted and non-
diluted) $(0.06) $(0.06)
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The complete financial statements along with management's discussion and
analysis can be found on the Company's website (www.cell-loc.com) and on SEDAR
(www.sedar.com).
Outlook
As the Company progresses into the second full year of commercial operations
during 2008 in Sao Paulo, Brazil it will continue to benefit from the experience
of operating its network based technology in what it believes to be a world
class show-case. The Company has demonstrated its ability to effectively and
efficiently compete with other well established location based technology
service providers in this market.
One of Cell-Loc's near term objectives will be to continue expanding its market
share of the stolen vehicle recovery vertical in both the insured and uninsured
markets. The recent announcement of an agreement with SASCAR is intended to
actively pursue both markets; however, as a Company, the strategy to contract
directly with insurance companies with large fleets in the coverage area will be
its primary objective. Cell-Loc remains optimistic about its ability to enter
into agreements offering telemetry services during 2008. The Company believes
that this is a significant market where its low cost data solution will have
competitive advantage.
Concurrently, the Company will work aggressively to lower the cost structure of
its services by reducing its Beacon manufacturing and component costs, as well
as other network related components. Continuing to work on lowering its cost
structure is key to Cell-Loc's expansion opportunities in Brazil, as well as
globally. To this end, the Company anticipates that it will complete various
agreements during 2008 that will substantially lower the cost of our hardware
and services.
During 2008, the Company anticipates consolidation in the LBS market space. It
is expected that real-time location services, as opposed to tracking
technologies, will continue to be recognized as the desired product. Tracking
technologies will continue to lose market share as the demand for
location-on-demand along with specific information or data will increase along
current trends. The Company remains confident that its low cost location
solution will be recognized as a leader in this evolving market.
About Cell-Loc Location Technologies Inc.
Cell-Loc Location Technologies Inc. (www.cell-loc.com) is the developer of a
family of network-based wireless location products that enable location-based
services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and
supports its patented wireless location technology in North and South America
and Asia, with a view to expanding globally. Cell-Loc is listed on the TSX
Venture Exchange under the trading symbol: "LTI."
Forward Looking Statements: This news release contains certain information that
may constitute forward-looking statements under applicable securities laws. The
reader is cautioned that assumptions used in the preparation of such
information, although considered reasonable by the Company at the time of
preparation, may prove to be incorrect. Actual results achieved may vary from
the results anticipated or implied herein and variations may be material. There
is no representation by the Company that actual results achieved will be the
same in whole or in part as those implied in any forward looking statements.
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