WebTech Wireless and Grey Island International Provide Progress Update on Company Integration
September 08 2009 - 4:00AM
Marketwired Canada
WebTech Wireless Inc. (TSX:WEW) ("WebTech Wireless") and Grey Island Systems
International Inc. (TSX VENTURE:GIS) ("Grey Island") announce that they have
made significant and early progress identifying opportunities for both companies
within each others' sales pipelines, as well as additional cost savings and
efficiencies to be realized post integration.
As first announced, the integrated company is forecasting:
- Pro-forma calendar 2009 run rate revenue of $50 million
- Sustainable 2010 organic growth based on existing contract backlogs
- Combined recurring revenue approaching $6 million per quarter in 2010
- Profitability in 2010
- A minimum of $1 million in operational savings - from savings on Grey Island
public company costs, R&D synergies, and other back-office costs.
Since the first announcement, the integrated company is now predicted to:
- Reduce procurement costs and overall cost of sales in 2010 by $1 million or
more - improving combined gross profit margins
- Achieve an additional $1 million in savings in 2010 by bringing certain
outsourced manufacturing in-house - further improving margins
- Redeploying development efforts, assigning overlapping resources to new
product development and incremental business opportunities.
Finally, early analysis of each company's sales pipeline has identified several
cross-selling opportunities to further enhance the organic growth opportunities
of both companies:
- A provisional sale of 160 Grey Island units to a WebTech Wireless customer in
Kuwait
- Extension of an existing Grey Island solution for a major multinational's
Canadian operation to its Middle Eastern unit, leveraging WebTech Wireless'
expertise in this market.
- Identification of four Middle East opportunities for Grey Island's NextBus
solution
- Grey Island's snow plow solution will be introduced to WebTech Wireless
customers soon after integration is complete
- Grey Island will introduce WebTech Wireless' flagship product, the WT5000
Locator(TM), to a number of its municipal customers looking for fleet-wide GPS
coverage.
Anwar Sukkarie, President & Chief Executive Officer of WebTech Wireless, said,
"Though we are still in the early stages of planning our integration, we are
thrilled to confirm that the synergies we believed existed, actually do. Grey
Island's product mix will knit together beautifully with our own products and
product roadmap. As important, is the discovery of tremendous potential among
our prospect and existing customer lists. I'm looking forward to travelling with
Owen to Europe and the Middle East as soon as this deal is closed to begin
consolidating these sales."
Owen Moore, President of Grey Island, said, "Now that the uncertainty clouding
this transaction has been removed, we're very excited about making good on the
opportunities it presents. Our sales force is anxious to start co-selling the
WebTech Wireless solution, and our customers are already talking about
installing a top-to-bottom solution that can deal with everything from simple
'track & trace' to sophisticated, integrated fleet and asset management systems
including regulatory compliance abilities."
The progress seen thus far underscores WebTech Wireless and Grey Island's
commitment to this agreement - and the provision of integrated and custom made
solutions for a variety of organizations that depend on efficient and effective
mobile resource management.
About WebTech Wireless Inc.
WebTech Wireless Inc. (TSX:WEW) is a global telematics and location-based
services provider that develops, manufactures and delivers end-to-end wireless
solutions designed to improve the productivity, profitability and safety of
vehicle fleets. WebTech Wireless products and services run on GPS and cellular
networks and provide Automatic Vehicle Location, Mapping, Reporting, Vehicle
Diagnostics, Driver Status, In-vehicle Telemetry and Navigation and Messaging.
The Company delivers products and services in over forty-one countries to a
variety of small, medium and Fortune 500 companies, with a particular focus on
the transport, service delivery, government and automotive markets. For more
information, please visit www.webtechwireless.com.
About Grey Island Systems International Inc.
Grey Island Systems International Inc. (TSX VENTURE:GIS), through its
subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in New York,
New York and Grey Island Systems in Toronto, Canada, is a leading provider of
custom real-time GPS/AVL, security and Telematics solutions as well as real-time
passenger information systems to government and related fleets. To find out more
about our products and services, visit our websites at: www.interfleet.com or
www.nextbus.com.
Forward-looking Statements
This press release contains "forward-looking statements" within the meaning of
applicable Canadian and United States securities laws. Generally,
forward-looking statements can be identified by the use of the forward-looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Assumptions upon which such
forward-looking statements are based include that WebTech Wireless and Grey
Island will be able to satisfy the conditions in the definitive agreement, that
no materially adverse facts or circumstances will be identified, that the
required approvals will be obtained from the shareholders of Grey Island, that
all third party regulatory and governmental approvals to the Transaction will be
obtained and all other conditions to the completion of the Transaction will be
satisfied or waived. Many of these assumptions are based on factors and events
that are not within the control of WebTech Wireless and Grey Island and there is
no assurance they will prove to be correct. Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of WebTech Wireless and
Grey Island to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related to
product plans, timing, content, and pricing of products, market and industry
expectations, the wireless communications industry, the mobile fleet industry,
and general economic and political conditions, as well as those factors
discussed in the section entitled "Description of the Business - Risk Factors"
in WebTech Wireless' annual information form for the year ended December 31,
2008 and although WebTech Wireless and Grey Island have attempted to identify
important factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that
cause results not be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. WebTech Wireless and Grey Island do not undertake to update any
forward-looking statements that are incorporated by reference herein, except in
accordance with applicable securities laws.
All trademarks and brands mentioned in this release are the property of their
respective owners.
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