Increase of Mobicom Unit Sales by 59% and Reduction of 73% in Net Loss
May 28 2009 - 11:22AM
Marketwired
To the attention of Business and Financial Editors
Datacom Wireless Corporation ("Datacom" or "the Corporation)
(TSX VENTURE: DAT), a Canadian leader in the design, development
and marketing of vehicle fleet management and theft prevention
solutions today announced its 2009 first quarter results.
HIGHLIGHTS
Sales for Mobicom, Datacom's flagship product, significantly
increased in the quarter. The 479 Mobicom units sold in the first
quarter 2009 was 59% more than the 301 units sold in the same
period in 2008.
Net Loss of $0.302 million, in the period, was down 73% compared
to the same first quarter period in 2008, in which the
corporation's Net Loss was $1.105 million. These favourable results
further reflect the strategic realignment initiated by the
corporation in 2008.
The Corporation increased its gross margin by 6.3 percentage
points to 49.4% in the first quarter in 2009, compared with 43.1%
for the same period in 2008. While revenues were down due to the
closure of the analogue network and the halt in sales of digital
security products, the Corporation managed to increase its gross
margin with effective cost control measures.
The continued impact of the Corporation's realignment efforts in
2008 resulted in significant reductions in expenses in 2009. The
expenses of $1.158 million where down 43.7% from the $2.055 million
for the first quarter of 2008,. The significant reduction in
expenses as a percent of revenue from 93% in first quarter 2008 to
67% in the same period 2009 reflects the organizations efforts to
better realign revenues and expenses.
As anticipated, sales of Datacom's consumer product Mobiguard
were down 12.6%, when the 2,457 units sold in 2009 are compared
with the 2,812 units sold during the first quarter of 2008.
Overall revenues were adversely affected by $0.469 million or
21% when compared to the first quarter of 2008. This decrease is
mostly due to the loss of recurring analogue income and the loss of
proceeds due to the halt in sales of Mobilus and Vigil digital
products. This decrease is consistent with Management's
forecasts.
The total number of outstanding shares, as at March 31, 2009 is
27,951,121 Common shares.
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", "in view
of", "in order to" 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 Eric Morin General Manager 450-781-6006
emorin@datacom.com
Datacom Wireless Corp (TSXV:DAT)
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