@Road Announces Initiatives to Strengthen Its Position in Mobile Resource Management Market; Reiterates Guidance for Second Quarter and Accelerates Path to Profitability.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers FREMONT, Calif.--(BUSINESS WIRE)--June 15, 2001 @Road(SM) (Nasdaq:ARDI ARDI Association Rwandaise pour la Promotion du Développement Intégré (French) ARDI Accounts Receivable Dollar Inventory ARDI Action Rwandaise pour le Developpement Integre ARDI Annually Renewable Disability Income ), a leading provider of location-enhanced wireless Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the solutions for mobile resource management, today reiterated the guidance it had previously disclosed for service revenue in the second quarter of 2001 and announced two new initiatives to further strengthen the company's leadership position. "We are continuing to add subscribers to our mobile resource management service at a rate that we believe will allow us to meet this quarter's financial projection of increasing service revenue by 15 to 20 percent sequentially," said Krish Panu, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of @Road. The company also announced two initiatives, a reduction in its work force of approximately 12 percent (approximately 40 employees), which has now been completed and a price increase of approximately 20 percent on its service and the platforms that enable the service. Associated with the work force reduction, @Road plans to record a one-time charge in the second quarter of 2001, which is currently estimated to be between $250,000 and $500,000. "We believe that our leadership position allows us to increase prices and continue to offer outstanding returns on investment for our customers. Many of our customers are experiencing paybacks of a few weeks to a few months and we expect that trend to continue even at these new price levels," continued Panu. "While we are enjoying success as a leader in the marketplace for mobile resource management, we believe that it is prudent to lower fixed expenses until we see how long the current softness in the economy lasts. "We now believe that even with conservative expectations on subscriber growth, higher prices and lower fixed expenses will allow us to achieve profitability in the third quarter of 2002, one quarter earlier than we had previously thought and with a strong cash position at that time. "Significantly, we believe that due to our scalable business and its recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue streams, these new prices and lower fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). can lead us to profitability with fewer subscribers than we had previously estimated," concluded Panu. About @Road Based in Fremont, @Road is a publicly held company that provides location-enhanced wireless Internet solutions for mobile resource management. Its patented LocationSmart(TM) technology platform combines wireless, positioning and XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. technologies with the Internet into a fully integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. that supports the delivery of location-enhanced wireless Internet services for businesses and mobile professionals. For more information, visit the company Web site at www.atroad.com. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, effect of pricing changes, achieving benefits from a work force reduction, @Road historical and future losses, limited operating history, the infancy infancy, stage of human development lasting from birth to approximately two years of age. The hallmarks of infancy are physical growth, motor development, vocal development, and cognitive and social development. of the wireless data industry where there is no established market for @Road products and services, ability of @Road to adapt to rapid technological change and dependence of @Road on wireless networks, network infrastructure and positioning systems owned and controlled by others. Further information regarding these and other risks is included in the @Road 10-K dated March 30, 2001, and in its other filings with the Securities and Exchange Commission. Note to Editors: @Road, the @Road logo and LocationSmart are trademarks and/or service marks of At Road Inc. |
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