@Track Communications Reports Third Quarter 2001 Financial Results; Discusses Strategic Direction.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 RICHARDSON Richardson, city (1990 pop. 74,840), Dallas and Collins counties, N Tex., a suburb of Dallas; founded in the 1850s, inc. as a city 1956. Richardson manufactures telecommunications equipment, medical devices, supercomputers, computer chips, and fiber optics. , Texas--(BUSINESS WIRE)--Nov. 14, 2001 @Track Communications, Inc. (Nasdaq:ATRK), a leading provider of wireless-based vehicle fleet management and intelligent mobile-asset-tracking solutions, today reported financial results for the 2001 third quarter and nine months and issued statements regarding strategic direction. Financial Results Total revenues for the 2001 third quarter ended Sept. 30 were $19.5 million, compared with $29.8 million for the 2000 third quarter ended Sept. 30. The reduction in total revenues was the result of decreased installations for member companies of SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications, Inc. (NYSE NYSE See: New York Stock Exchange :SBC). The company reported a net loss for the 2001 third quarter of $2.4 million ($0.05 per basic share), compared with a net loss of $2.6 million ($0.51 per basic share) for the 2000 third quarter. Due to the re-capitalization of the company completed in June June: see month. 2001, there were 48.1 million average weighted basic shares outstanding for the 2001 third quarter, versus 5.1 million for the 2000 third quarter. For the first nine months of 2001, total revenues were $59.1 million, versus $72.3 million for the first nine months of 2000. As was the case for the third quarter, the lower total revenues were the result of decreased installations for member companies of SBC Communications, Inc. Net income was $42.8 million ($1.97 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share), including the extraordinary gain of $59.5 million ($2.81 per basic share), compared with a net loss of $15.3 million ($3.02 per basic share), including non-recurring charges of $5.2 million ($1.03 per basic share) for the first nine months of 2000. Business Outlook "Our 2001 third quarter results do not reflect the anticipated revenue growth, operating cost reductions and potential new business ventures that we believe will occur as a result of our recently completed transaction with majority shareholder Minorplanet Systems PLC," said Jana JANA Journal of American Nutraceutical Association JANA Jamahiriyah News Agency JANA Joint Army-Navy-Air Force Ahlfinger Bell, president and chief executive officer. The company expects to evolve Evolve may refer to several terms:
-- Increase overall gross margins through the sale of the Vehicle Management Information (VMI(TM)) digital technology to companies operating private vehicle fleets, which approximates 21 million vehicles in the U.S., and is almost 20 times larger than the markets the company has historically served. -- Leverage the VMI(TM) technology to enhance and improve products and services that the company currently offers to its long-haul customers and member companies of Southwestern Bell Communications, Inc., which should improve the gross margin of the company's current business base. -- Reduce operating expenses by leveraging Minorplanet Systems PLC's research and development team of 74 dedicated specialists. In addition, the operating model required to support VMI(TM) technologies is expected to require significantly less infrastructure relative to the anticipated revenue and gross margin contribution. Initial Success in the Marketplace Together with Minorplanet Systems PLC, the company has been testing the market for VMI VMI Virginia Military Institute VMI Vendor Managed Inventory VMI Vertical Motion Index VMI Valtakunnan Metsien Inventointi (Finnish: National Forest Inventory) VMI Video Module Interface (TM) since July July: see month. , while launching in the Dallas/Ft. Worth metroplex A metroplex is large metropolitan area containing several cities and their suburbs.[1] It is also sometimes used as an alternative to metropolis or megalopolis, which is a chain of continuous metropolitan areas. . During the short time since the launch, the company has signed contracts with 35 customers representing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 300 units. @Track has completed its assessment of the marketplace acceptance and value proposition that VMI(TM) offers and believes there is a strong potential for this technology in the U.S. market. In addition, the company has been working with Minorplanet Systems PLC to adopt their proven and successful sales and marketing approach for additional planned market roll-outs of VMI(TM) in the U.S. The company believes that the VMI(TM) technology and strong value proposition, combined with the adoption of an aggressive sales and marketing approach, creates the potential for exceptional growth and profitability in the years ahead. Also on a positive note, Minorplanet Systems PLC recently reported outstanding results as part of its Aug. 31, 2001 fiscal year end, and @Track expects to duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. this success in the U.S. In just over three years, Minorplanet Systems PLC has sold approximately 55,000 VMI(TM) units in the U.K., Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , and has achieved triple-digit
revenue growth while maintaining healthy gross margins."We are very encouraged by initial customer response to our recently launched VMI(TM) product that utilizes the technology acquired from our new strategic partner, Minorplanet Systems PLC," Bell noted. "We believe sales of this product should ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale very nicely as we move into various major U.S. markets in the months ahead, contributing significantly to financial results for next year." About @Track Communications @Track Communications (www.at-track.com) provides intelligent wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. products and services using state-of-the-art technologies and networks. The company offers mobile communications, emergency dispatch A dispatch or dispatches can refer to:
 Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. Stores, Inc., Contract Freighters Inc.
(CFI CFIabbr. cost, freight, and insurance ) and member companies of SBC Communications, Inc. Currently holding 49 U.S. and foreign patents, with additional patents pending, @Track offers industry-leading, innovative vehicle-fleet-management solutions through its ability to combine wireless data and voice technologies with GPS-satellite-tracking capabilities. @Track is headquartered in Richardson, Texas Richardson is a suburb in Dallas County and Collin County, Texas. As of the 2000 census, the city had a total population of 91,803, while according to a 2006 estimate, the population had grown to 99,200. . About Minorplanet Systems PLC Minorplanet Systems PLC is the acknowledged market and technology leader in VMI(TM) (Vehicle Management Information) Systems. The company has operations in England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , Australia, Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , Holland, France and Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and currently has key partnerships with GE Capital Fleet Services Fleet is a motorway service station on the M3 near Basingstoke. It is owned by Welcome Break. It was originally built in a Scandinavian style and in 1992 won "Loo of the Year". , AON Risk Services, ITIS ITIS Integrated Taxonomic Information System ITIS International Trade Institute of Singapore ITIS Integrated Transport Information System ITIS International Tourism Institute ITIS International Trade Information Service ITIS Information Technology Insurance Specialists Holdings PLC, Schmitz Cargobull Schmitz Cargobull, founded in 1892, is the leading manufacturer of tippers, trailers and semi-trailers for commercial vehicles in Europe. Schmitz Cargobull has a reputation for quality, reliability and modern technology. and BT Cellnet. Founded five years ago in Leeds Leeds, city (1991 pop. 445,242) and metropolitan district, N central England, on the Aire River. It lies between one of England's leading manufacturing regions on the west and south and an agricultural region on the north and east. , England, the company has over 2,500 customers, with an installed base of approximately 55,000 units. Minorplanet Systems PLC is a U.K.-listed PLC traded on the Alternative Investment Market, which is part of the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. , under the symbol MPS.L. For more information, please refer to the company's website at www.minorplanet.com. Legal notice to investors: Certain matters discussed in this press 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. " intended to qualify for the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. from liability established by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "expects," "anticipates" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements generally involve known and unknown risks, uncertainties and other facts which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, the following: acceptance of new product and service offerings by existing and prospective customers; ability to manage rapid growth; competition; ability to hold company product costs to current anticipated levels; availability of GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. coverage; reliance on third-party research and development; market conditions; changes in business strategy; business abilities and judgment of management and personnel and availability of qualified personnel. For a listing of risks applicable to the future prospects of the Company, please refer to the reports filed with the SEC, such as recent 10-K and 10-Q Reports. "@Track Communications" and the red orb logotype are trademarks and service marks of @Track Communications, Inc. "Minorplanet" is a federally registered trademark and service mark of Minorplanet Limited, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Minorplanet Systems PLC. "Minorplanet Systems USA" is a trademark and service mark of Minorplanet Limited.
@TRACK COMMUNICATIONS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share and units)
Three months ended Nine months ended
September 30, September 30,
------------------ ------------------
2001 2000 2001 2000
------- ------- ------- --------
Revenues:
Product $5,391 $16,021 $14,829 $26,156
Ratable product 2,136 2,015 7,617 10,254
Service 11,945 11,744 36,674 35,939
------- ------- ------- --------
Total revenues 19,472 29,780 59,120 72,349
------- ------- ------- --------
Cost of revenues:
Product 3,858 11,224 11,336 18,281
Ratable product 1,804 1,732 6,306 8,332
Service 7,164 7,363 20,617 21,376
Provision for settlement of
litigation -- -- 2,100 --
------- ------- ------- --------
Total cost of revenues 12,826 20,319 40,359 47,989
------- ------- ------- --------
Gross profit 6,646 9,461 18,761 24,360
------- ------- ------- --------
Expenses:
General and administrative 2,776 2,883 9,325 8,736
Customer service 1,621 1,806 5,566 5,207
Sales and marketing 951 1,199 3,099 3,546
Engineering 871 1,158 4,368 2,732
Network services center 457 433 1,326 1,102
Depreciation and amortization 1,966 1,490 5,370 4,365
------- ------- ------- --------
8,642 8,969 29,054 25,688
------- ------- ------- --------
Operating income (loss) (1,996) 492 (10,293) (1,328)
Interest income 128 262 436 1,155
Interest expense (538) (3,342) (6,830) (10,026)
Other income -- -- -- 142
------- ------- ------- --------
Loss before income taxes,
cumulative effect of
accounting change and
extraordinary item (2,406) (2,588) (16,687) (10,057)
Income tax (provision) benefit -- -- -- --
------- ------- ------- --------
Loss before cumulative effect
of accounting change and
extraordinary item (2,406) (2,588) (16,687) (10,057)
Cumulative effect of
accounting change -- -- -- (5,206)
Extraordinary item, net
(Note 3) -- -- 59,461 --
------- ------- ------- --------
Net income (loss) $(2,406) $(2,588) $42,774 $(15,263)
======= ======= ======= ========
Basic income (loss) per share:
Loss before cumulative effect
of accounting change and
extraordinary item $(0.05) $(0.51) $(0.79) $(1.99)
Cumulative effect of
accounting change -- -- -- (1.03)
Extraordinary item -- -- 2.81 --
------- ------- ------- --------
Net income (loss) $(0.05) $(0.51) $2.02 $(3.02)
======= ======= ======= ========
Diluted income (loss) per
share:
Loss before cumulative effect
of accounting change and
extraordinary item $(0.05) $(0.51) $(0.77) $(1.99)
Cumulative effect of
accounting change -- -- -- (1.03)
Extraordinary item -- -- 2.74 --
------- ------- ------- --------
Net income (loss) $(0.05) $(0.51) $1.97 $(3.02)
======= ======= ======= ========
Weighted average number of
shares outstanding:
Basic 48,056 5,065 21,148 5,056
======= ======= ======= ========
Diluted 48,056 5,065 21,675 5,056
======= ======= ======= ========
Supplemental information:
EBITDA (30) 1,982 (4,923) 3,179
======= ======= ======= ========
Installed Units - beginning of
period 68,211 53,621 67,336 50,825
Net additions 1,651 7,095 2,526 9,891
------- ------- ------- --------
Installed Units - end of
period 69,862 60,716 69,862 60,716
======== ======= ======= ========
@TRACK COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
ASSETS
September 30, December 31,
2001 2000
------- -------
Current assets:
Cash and short-term investments $13,509 $20,641
Accounts receivable, net 11,863 12,738
Inventories 8,538 13,216
Deferred product costs - current portion 6,480 7,406
Other current assets 1,198 1,759
------- -------
Total current assets 41,588 55,760
Network, equipment and software, net 9,655 12,851
Deferred product costs - non-current portion 5,778 9,770
License rights, net 38,334 --
Other assets, net 665 2,663
------- -------
Total assets $96,020 $81,044
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $3,438 $7,992
Telecommunications costs payable 4,036 5,358
Accrued interest payable 82 3,784
Deferred product revenues - current portion 7,830 8,975
Other current liabilities 7,338 8,826
--------- ---------
Total current liabilities 22,724 34,935
Deferred product revenues - non-current
portion 7,046 11,966
Senior notes payable 14,094 92,484
--------- ---------
Total liabilities 43,864 139,385
--------- ---------
Commitments and contingencies
Stockholders' equity (deficit):
Common Stock 481 256
Common Stock - Class B -- --
Preferred Stock - Series E -- --
Additional paid-in capital 217,495 149,996
Accumulated deficit (165,272) (208,046)
Treasury stock (548) (547)
--------- ---------
Total stockholders' equity (deficit) 52,156 (58,341)
--------- ---------
Total liabilities and stockholders' equity
(deficit) $96,020 $81,044
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