CHICAGO--(BUSINESS WIRE)--Telular Corporation (NASDAQ: WRLS), the leader in alarm and event monitoring solutions and services, today completed the acquisition of SupplyNet Communications, a leading supplier of wireless tank-level monitoring services. Additionally, Telular announced preliminary financials for the fourth quarter and fiscal year ended September 30, 2008.
SupplyNet Communications, based in Schaumburg, Illinois, provides private label and branded tank monitoring solutions for some of the world’s largest petroleum logistics and chemical companies. SupplyNet’s automatic replenishment (ARP) infrastructure enables the wireless monitoring of vital inventory information allowing companies to manage costs while optimizing cash flow with just-in-time delivery. Under the terms of the agreement, Telular will initially pay approximately $3 million in cash at closing. During 2009, the Company expects to generate nearly $6 million in revenues from SupplyNet Communications. As part of the acquisition, John G. Crump, President and Founder of SupplyNet, will join Telular’s management team as VP, M2M Sales and Services.
“The acquisition of SupplyNet is consistent with our strategy to expand Telular’s portfolio of solutions into emerging markets with significant growth potential and recurring revenue streams,” said Joseph Beatty, president and chief executive officer of Telular Corporation. “By combining both our technology and experience, we will be able to introduce wireless ARP solutions to new industrial markets. We have a strong reputation for our existing products and have been providing machine-to-machine solutions (M2M) for many years through our Telguard® Digital line of cellular alarm communicators. This acquisition will diversify our revenue stream beyond the security space and into a relatively underpenetrated and burgeoning market. We are very pleased about this exciting growth opportunity and expect this acquisition to be accretive in fiscal 2009.”
“The acquisition by Telular is an important step in our commitment to providing reliable and economical tank monitoring services,” said Mr. Crump. “I am very excited to join the Telular team and look forward to helping grow their M2M business.”
In conjunction with the acquisition of SupplyNet Communications, today the Company is issuing preliminary financial results for the fourth quarter and fiscal year 2008.
Fourth quarter revenues are expected to be approximately $11 million, compared with revenues of $15.3 million in the third quarter of 2008 and $26.4 million in the fourth quarter of 2007. For fiscal year 2008, revenues are expected to be approximately $66 million, compared to $74.5 million in fiscal year 2007. For the fourth quarter of 2008, we expect net income to be positive.
“While we effectively managed expenses in the fourth quarter, revenue results were below our expectations due to the weakened housing market and slower demand for our solutions; particularly from our largest Telguard customer,” said Mr. Beatty. “We remain committed to capitalizing on new opportunities to grow revenue and we expect to report positive cash flow generation for the fourth quarter and fiscal 2008 year end.”
The company will discuss the acquisition and preliminary results in more detail on a conference call to be held today, Wednesday, October 1, 2008 at 4:30 p.m. EDT. To participate on the conference call from the United States and Canada dial 800-240-7305 at least 10 minutes prior to the start of the call. International attendees wishing to participate on the call can gain access by dialing 303-262-2137.
The conference call will also be broadcast live over the Internet and will be accessible via webcast on the Telular website at www.telular.com (under Investor Relations), by clicking on the "audio" hyperlink titled, "Conference Calls."
If you are unable to participate on the conference call, a replay will be available beginning October 1, 2008 at 6:30 p.m. ET until October 3, 2008 at 11:59 p.m. EDT. You can access the digitized replay in the United States or Canada by calling 800-405-2236 and entering the passcode 11120548#. International callers can access the replay by dialing 303-590-3000 and entering the passcode 11120548#.
In addition, Telular plans to release its complete financials for the fourth fiscal quarter and 2008 fiscal year on November 6, 2008.
Telular provides event monitoring and wireless access solutions for business and residential customers, enabling analog devices such as phones, faxes and computers to link directly with existing wireless connections. With over 20 years of experience in the wireless industry, Telular Corp. has developed patented technologies, providing businesses and consumers a bridge between their multiple communications technologies and a single wireless connection, delivering remote extension capabilities and access to voice, fax and data streams without significant network investment or disruption. Headquartered in Chicago, IL, Telular Corp. has sales offices in Atlanta and Miami. For more information, please visit www.telular.com.
About SupplyNet Communications
SupplyNet, (www.SupplyNetSolutionsOnLine.com), is a leading supply chain solutions provider of remote inventory monitoring services. SupplyNet solutions are easily installed and are predominantly battery operated and cellular – eliminating end user infrastructure dependencies. SupplyNet solutions are used by suppliers of bulk materials such as Cargill and BASF to extend vendor managed inventory (VMI) services to their customers. SupplyNet was just awarded the M2M gold Value Chain Award as an enabler for Siemens Water Technologies. The award recognizes the most highly successful commercial applications of machine-to-machine (M2M) technology, and the solution providers that made their success possible.
Please be advised that some of the information in this release presents the Company’s intentions, beliefs, judgments and expectations of the future and are forward-looking statements. It is important to note that the Company’s actual results could differ materially from these forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s report on Form 10-K for the fiscal year ended September 30, 2007 Copies of these filings may be obtained by contacting the Company or the SEC.