TCS Reports $5.8 Million in Second Quarter 2008 Commercial Systems Orders
22 May 2008 - 12:30AM
Marketwired
ANNAPOLIS, MD (NASDAQ: TSYS), a leading provider of
mission-critical wireless communications, today announced that the
company has received orders for approximately $5.8 million in
messaging and location software and related systems in the second
quarter of 2008 for deliveries expected before June 30. This
compares to an average of about $4 million per quarter in 2007 and
$10.8 million in the first quarter of 2008.
In addition to the $5.8 million of orders in hand, TCS believes
that it is likely to receive at least $3 million of additional
second quarter messaging license orders for increased capacity,
driven by SMS usage growth by TCS's messaging customers of long
standing. Based on Cellular Telecommunications and Internet
Association (CTIA) statistics, US text messaging traffic grew more
than 130% between 2006 and 2007. TCS expects annual triple-digit
growth to continue through 2009 and beyond. This growth is fueled
by intercarrier messaging, televoting and unlimited in-network text
messaging plans. Looking ahead, text messaging usage is expected to
continue to grow as a reliable, easy-to-use transport for new
services such as mobile payment, mobile banking, location-based
mobile search and ad-sponsored content.
Much of this second quarter business is with two North American
CDMA carriers that have become TCS text messaging customers during
the last year. TCS provides software to US wireless carriers for
short message service (SMS) also known as text messaging, and earns
revenue from perpetual licenses based on capacity, customization,
feature enhancements, and software maintenance. TCS SMS systems
include its short message service center platform, and related
wireless intelligent gateway which has both messaging and
location-based services functions.
"TCS's reputation of providing proven and reliable text
messaging solutions has attracted a growing customer base," said
Maurice B. Tos�, Chairman, President and CEO of TCS. "Our
smsExpress solution provides a cost-effective and reliable means to
handle the explosive text messaging growth that carriers are
experiencing and has played a strategic role in TCS's efforts to
expand market share even as this market undergoes rapid expansion.
As one of the few companies in the world that holds multiple
messaging and location patents, we are well positioned to support
wireless carriers with hosted and in-network messaging and location
solutions. We believe that the rapid expansion of messaging
presages what wireless carriers will experience with location
technologies, and TCS is well positioned to be a proven partner for
this new revolution to come."
About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) produces
wireless data communications technology solutions that require
proven high levels of reliability. TCS provides wireless and VoIP
E9-1-1 network-based services, secure deployable communication
systems, engineered satellite-based services, and commercial
location applications, like traffic and navigation, using the
precise location of a wireless device. Customers include leading
wireless, cable MSOs, and VoIP carriers around the world, and
agencies of the U.S. Departments of Defense, State, and Homeland
Security. For more information, visit www.telecomsys.com.
Except for the historical information contained herein, this
news release contains forward-looking statements as defined within
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities and Exchange Act of 1934, as amended. These
statements are subject to risks and uncertainties and are based
upon TCS' current expectations and assumptions that if incorrect
would cause actual results to differ materially from those
anticipated. Risks include the possibility that anticipated
additional orders are not received, that text messaging usage will
not continue to grow and that the TCS customer base will not
continue to grow, that customer orders could be cancelled, that
current carrier customers could opt to provide text messaging
capabilities in a different manner or from competing sources, that
the market position that TCS has established will not be considered
by customers as a good partnership relationship for location-based
services, and those risks detailed from time to time in the
Company's SEC reports, including the report on Form 10-K for the
year ended December 31, 2006 and Form 10-Q for the quarter ended
September 30, 2007.
Existing and prospective investors are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company undertakes no obligation to
update or revise the information in this press release, whether as
a result of new information, future events or circumstances, or
otherwise.
Media Contacts: TeleCommunication Systems, Inc. Tom Brandt
410-280-1001 TBrandt@telecomsys.com Liolios Group Scott Liolios or
Matt Glover 949-574-3860 info@liolios.com
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