Datacom Announces Fourth Quarter and Year-End 2007 Financial Results
LAVAL, QUEBEC–( EMWNews – April 1, 2008) –
Attention 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 and recovery solutions today announced its fourth quarter and year-end 2007 financial results.
Datacom has filed the following documents on the System for Electronic Documents Analysis and Retrieval (“SEDAR”):
1- Audited Financial Statements for the year ended December 31, 2007 and 2006; and
2- Annual Management Report for the year ended December 31, 2007.
HIGHLIGHTS OF 2007
– On June 6, 2007, the Company closed an Initial Public Offering (“IPO”) of $10 million.
– Since the second quarter of 2007, Claude Chagnon and Greg Rokos joined the Company’s Board of Directors. Both are experienced businessmen with proven track records in management, strategic planning and mergers and acquisitions, all key factors in the Company’s strategic growth.
– On August 31, 2007, the Company concluded its acquisition of substantially all assets and business operations of Vigil Locating Systems Technologies Inc. (Vigil GPS). Vigil GPS operates in the same sector of activity as Datacom and its operations are similar in every aspect to its own. However, its markets and methods of distribution complement ours. The integration process is practically fully completed.
– In October 2007, the Company launched a new sales program for its Mobiguard product in conjunction with La Capitale General Insurance, which conducts the majority of its business in Quebec. The Company expects that this program will make a significant contribution to its 2008 results.
YEAR-END AND FOURTH QUARTER 2007 FINANCIAL RESULTS
For the year ended December 31, the Company’s revenues totalled $7.89 million, up 8.8% from the 2006 figure of $7.25 million compared with $2.05 million in the fourth quarter of 2007, up 2.6% from 2006 fourth quarter revenues of $1.99 million.
In 2007, the recurring revenues increased 29.4% year-over-year, from $2.75 million in 2006 to $3.56 million in 2007. In proportion, recurring revenues represented 45.2% of total revenue in 2007, compared with 38.0% in 2006. Recurring revenue grew 44.8% year-over-year from $0.75 million in the fourth quarter of 2006 to $1.08 million for the same period of 2007. Proportionally, recurring revenue represented 52.7% of total revenue during the fourth quarter. This figure is better than the one during the same period in 2006 while recurring revenues represented 37.4% of total revenue.
As at December 31, 2007, there were 28,230,733 shares outstanding compared to 900,000 a year ago.
“The Company marked an important milestone in 2007 by becoming a public company and by making its first acquisition. Year-end 2007 financial results, however, remain lower than our expectations. During the 2008 fiscal period, we will review our corporate and operational structure to ensure that we will be able to meet our sales growth targets and boost profitability. We will also implement an action plan to support our new sales strategy, while reducing all operating expenses,” said Robert Latham, Chairman of the Board of Datacom. “This plan is designed to aggressively address Datacom’s profitability issue, while ensuring that we make the most effective possible use of our cash and cash equivalents to provide the Company with all the flexibility required for its future development through acquisitions, strategic partnerships and marketing of new products and services.”
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 and recovery solutions. Its products and services use wireless communications and satellite-based tracking technologies (GPS) and a state-of-the-art ASP information portal. For further information, visit www.datacom.com.
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 release are the property of their respective owners.
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