Datacom Announces Third Quarter 2008 Financial Results
26 November 2008 - 8:28AM
Marketwired
Datacom Wireless Corporation ("Datacom" or "the Corporation)(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 September 30, 2008.
Third Quarter Growth Highlights:
Mobicom units sold in the third quarter of 2008 totalled 502
units, up 99.2 %, compared to 252 units sold in the same period in
2007. During the first nine months of 2008, Mobicom units sold
totalled 1,305 units, up 39.3 % compared to 937 units sold for the
same period in 2007.
Mobiguard units sold for the third quarter of 2008 totalled
4,817 units, up 74.5 %, compared to 2,760 units sold for the same
period in 2007. During the first nine months of 2008, Mobicom units
sold totalled 12,496 units, up 84.8 % compared to 6,764 units sold
for the same period in 2007.
The Corporation streamlined its sales and reduced the expenses
related to sales and marketing, quarter over quarter, since January
2008 while increasing the Gross margin by 7.4 percentage points
compared to the first nine months of 2007.
Termination of the analogue service
- The Corporation continues its efforts underway since the
second quarter in regards to the analogue service termination. All
impacted customers were notified in writing that the termination of
service would occur on November 16th 2008. Refunds for services
pre-paid but not rendered will be issued during the fourth quarter
of 2008.
The Corporation vigorously executed its Mobicom marketing
plan:
- Introduced new analysis and communication tools to improve
customer relations and stimulate the growth of our existing
customer base.
- Reorganized the Corporation activities in Ontario by
introducing an improved sales structure better suited to the needs
of that market.
- Implemented a telemarketing team to increase the efficiency of
the Corporation's sales representatives.
- Added new sales representatives to the existing team with
professional profiles that accurately matches our market
competitive landscape.
Revamp of the Mobicom customer application.
- The end-user interfaces " Dataview " and " Mapview " were
redesigned to improve the ergonomic and overall customer
experience. Subsequent deployments took place to address customer
feedback with complementary requirements. A mapping update with the
latest geographical data was also completed.
Cost reduction plan
- Management continues its efforts to reduce expenses. At the
end of the third quarter, 13 additional layoffs were completed for
a total of 24, or 28% in headcount since January 1st 2008.
- From our second quarter forecast of $525,000 for implementing
our expenditure reduction plan and implementing the agreements with
our principal customers concerning the termination of the analogue
security operations as well as maintaining the digital Mobilus
service until December 31st 2010, $92,421 were spent as of
September 30, 2008. Management maintains its original forecast of
$525,000 to realize this plan. This amount of $92,421 was recorded
under Unusual items of the income statement.
Emerson Agreement Co.
- The original agreement between the Corporation and Emerson
Electric Co. under which royalties are paid to Datacom based on
units sold expired in July 2008. Discussions to renew the agreement
are still under way.
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 Corporation expects or anticipates, are
forward-looking statements. Although the Corporation 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 Corporation 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 pbelanger@datacom.com
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