Datacom Announces Second Quarter 2008 Financial Results
30 August 2008 - 6:53AM
Marketwired
To the attention of Business and Financial Editors
Datacom Wireless Corporation ("Datacom" or "the Company")(TSX
VENTURE: DAT), a Canadian leader in the design, development and
marketing of mission critical vehicle fleet management and theft
prevention solutions today announced its financial results for the
three-month period ended June 30, 2008.
First Quarter Growth Highlights:
- During the second quarter of 2008, the following new customers
and/or units were added:
-- 41 new Mobicom customers (commercial market)
--- 502 Mobicom units sold (335 in 2007)
-- 486 Mobilus units (consumer market) (656 in 2007)
-- 4,860 Mobiguard units (consumer market) (2,609 in 2007)
-- 187 Vigil GPS units (consumer market) (nil in 2007)
- Eric Morin was appointed General Manager with responsibility
for the Corporation's day-to-day operations. Mr. Morin originally
joined the Corporation in June 2002 and was named Vice-President of
Operations in February 2007. As General Manager, he will be
responsible for the Corporation's day-to-day operations, in
addition to retaining his duties as Vice-President of
Operations.
- Datacom now has thee local resources operating in its Calgary
sales office. Sales figures for Calgary are in line with the
Corporation's expectations.
- As explained in our press release issued on July 30, 2008, the
Company decided to reorient activities around the sale of Mobicom
Fleet Management Solutions and progressively terminate Mobilus and
Vigil products' activities. We refer you to the Management
Discussion and Analysis with respect to the June 30, 2008 Financial
Statements and the press release of July 30, 2008 for more
details.
- Also, during the quarter, the Corporation introduced its new
all-inclusive instalment sales plan, which enables customers to
make monthly payments over a three-year period covering equipment
and service charges. Under this plan, the Corporation will have a
competitive market offer; in addition, customer feedback has been
very positive. The Corporation has begun seeking private financing
for the all-inclusive instalment sales plan with a view to limiting
the potentially negative short-term impact on the Corporation's
cash position if the Corporation provides the financing.
- Finally, as at June 30, 2008, 3,024 Web-based fixed wireless
management systems (Rosemount 753R with ITraX) have been sold. The
Corporation took part in the development of this product in
association with a subsidiary of Emerson Electric Co. and continues
to provide development and IT support services. The original
agreement between the Corporation and Emerson Electric Co. under
which royalties are paid to Datacom based on the number of units
sold expired in July 2008. Discussions are under way to renew this
agreement.
"Through the second quarter, the Company has been implementing
the action plan it instituted at the beginning of the second
quarter and that is designed to enhance the Company's profitability
by orienting activities around profitable Fleet Management
solutions and by cutting operating expenses," noted Pierre
Belanger, Acting President and CEO of Datacom.
Option grants
The Company announces that it has granted to three of the
Corporation's officers, Eric Morin, Claude Bergeron and James
Chandik, a total of 700,000 options to purchase common shares of
the Corporation. Each of these options is exercisable at a price of
$0.20 per share and will expire on August 25, 2018. The options
have been granted pursuant to the Corporation's incentive stock
option plan.
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 solutions.
Its products and services use wireless communications and
satellite-based tracking technologies (GPS) and a state-of-the-art
ASP information portal.
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 (450)
781-6020 Email: pbelanger@datacom.com
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