Aether Systems Announces Addition of New Transportation Products, Services and Customers Following Agreement With @Track Communications.Business Editors & High-Tech Writers OWINGS MILLS, Md.--(BUSINESS WIRE)--March 18, 2002 New Wireless Products Broaden Aether's Fleet Management and Asset Tracking Capabilities; Aether aether: see ether, in physics and astronomy. Aether god of whole atmosphere. [Gk. Myth.: Jobes, 42] See : Air Also Provides Updated Financial Guidance Aether Systems, Inc. (Nasdaq:AETH), a leading provider of wireless data products and services, announced today that it has expanded its products, services, and customer base in its Transportation & Logistics division through the acquisition of certain assets and licenses from @Track Communications, Inc. (Nasdaq:ATRK). Based 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. , @Track is a leading provider of wireless-based vehicle fleet management and intelligent mobile-asset-tracking solutions. Aether also announced today updated revenue and operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. guidance for the first half 2002 as well as operating expense guidance for the second half of 2002. Under terms of the $15 million agreement with @Track, Aether will assume management of the portion of the @Track product suite that provides solutions for the long-haul trucking and asset tracking industries. Through its existing product suite including MobileMax2 and e-Mobile, Aether currently has a strong presence in the transportation industry with over 200 customers and more than 20,000 subscribers. With this agreement, Aether now has the opportunity to support and retain the business of approximately 400 new customers representing an additional subscriber base of more than 25,000. "This agreement demonstrates Aether's ability to execute on its plan to invest in core areas of strength, including Transportation & Logistics, Mobile Government and Enterprise Solutions," said Chairman 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. Dave Oros. "The outstanding products and services that we have added bring an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become positive revenue stream with good gross margins and will enhance Aether's ability to address the estimated 10 million vehicles in the U.S. commercial trucking market(a). What's more, the asset tracking and fleet management products that we have added enhance not only our Transportation and Logistics division, but are also applicable to other areas including Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States and Enterprise Solutions." Under terms of the sale, Aether acquired assets and related license rights to the following products and services: -- TrackWare(R) - a trailer-tracking product featuring Cellemetry(R) Data Service technology, that allows users to monitor the location and status of their trailer fleets. Integrated sensors can detect whether a trailer is loaded or empty, whether it is connected or disconnected from a tractor and whether its doors are open or closed. -- 20/20V(TM) - a GPS asset tracking solution featuring Cellemetry(R) Data Service technology, that is ideally suited for small fleets to improve management of their dispersed mobile assets. -- Platinum Service - an information management system that provides trucking companies with support for a wide variety of operational needs including electronic data interchange (EDI) for load tendering, billing, shipment status, funds transfer, dispatch, logs, vehicle maintenance, and customer service. Aether and @Track will also work together to support the customer base of several hundred long-haul trucking companies and thousands of users of @Track's HighwayMaster Series 5000 (HM 5000) product. HM 5000 is a total fleet management solution, combining voice and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. with satellite-based GPS location technology. Under terms of the agreement, @Track will assign to Aether all service revenues from HM 5000 customers following closing. Aether, in turn, will reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. @Track for the network and airtime air·time n. 1. The time during which a radio or television station is broadcasting. Also called airspace. 2. The time at which a radio or television program is broadcast. service costs related to providing the HM 5000 service. Over time, Aether will continue to provide customer care support for the HM 5000 customers while working with new customers to introduce them to Aether's enhanced products and services. "Aether Systems is committed to serving the 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. needs of the transportation industry and this agreement is another important step toward this goal," said Bill Hannon, President, Aether Transportation & Logistics. "We have strengthened our business by adding not only new products and services, but also new customers who already understand the value of wireless communications. Aether is uniquely positioned to offer a greater choice of technology and solutions to an industry that has not historically had as many options." In addition to the relationships with new customers, Aether will gain a team of customer service, business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and product management employees. "This agreement with Aether is another key step in @Track's business strategy to focus its resources on aggressively penetrating penetrating breaching the tissues of the body. the metro marketplace with Minorplanet 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 , which we believe is the key to @Track's future growth," said Jana Ahlfinger Bell, @Track's president and chief executive officer. "In addition, we will continue to provide mobile communication solutions to 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., our largest metro marketplace customer". "At the same time, we will help to ensure that our long-haul trucking customer base will continue to receive quality service and support for their HM5000 mobile units, as well as provide the opportunity for these customers to move to the next-generation products and services of Aether, a company that is strategically committed to the businesses of long-haul trucking data and voice communications and intelligent asset-tracking solutions," added Bell. At the closing of the $15 million transaction, @Track received $3 million in cash, of which $1 million will be held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. and released to @Track over a 12-month period. $12 million was paid in the form of a note that is payable, at Aether's option, in either preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. convertible into registered common stock of Aether that could be sold over the next two quarters, or cash. Management Guidance (including this transaction) In Q1 2002, Aether expects revenues of approximately $23 million and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the low $40s million range. In Q2, 2002, Aether expects revenues to be approximately $27 million, which will include core growth, and operating expenses to decrease to the mid to upper $30s million range. By Q4 2002, Aether expects continued revenue growth and operating expenses to continue to trend downward to the upper $20s million range. Comments from Aether Chairman and CEO Dave Oros: "Aether's aggressive cost-reduction efforts will result in significantly reduced operating expenses. They were difficult yet necessary measures that did have a short-term impact on revenue. We now look forward to growth. The new products we have added through this agreement with @Track, as well as new Aether products targeting the mobile workforce including field service and sales force automation Automating the sales activities within an organization. A comprehensive SFA package provides such functions as contact management, note and information sharing, quick proposal and presentation generation, product configurators, calendars and to-do lists. , will help fuel this growth. We are focusing on our core areas of strength while broadening our product set and maintaining our focus on cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. ." About Aether Systems Aether Systems helps enterprise customers improve efficiency and profitability by providing the services, software and support necessary to extend existing and future applications from the desktop to any wireless device. Through Aether Fusion(TM), Aether's wireless enabling technology foundation, Aether develops, deploys and manages wireless solutions built on industry standard technology and backed by Aether's expertise in wireless hosting, software and services. Aether provides the worlds of business and government with a single source for reliable, scalable and cost effective wireless solutions. For more information, please visit www.aethersystems.com. About @Track Communications @Track Communications (www.at-track.com) provides intelligent wireless communications products and services by combining wireless data and voice technologies with GPS-satellite-tracking capabilities. Headquartered in Richardson, Texas, the company offers mobile communications, emergency dispatch and fleet management systems to a wide variety of companies, including member companies of SBC Communications. Safe Harbor 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. Language: This press release contains 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements based on a preliminary review by management of financial information for the 2002 fiscal year. When used herein, the words anticipate, believe, estimate, intend, may, will, and expect and similar expressions as they relate to Aether Systems, Inc. (Aether or Company) or its management are intended to identify such forward-looking statements. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include: (1) whether assets we acquire from @Track perform according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. our expectations; (2) whether sales levels of other products and services also perform according our expectations; (3) whether trends indicated to date continue into the future; (4) whether changes in business conditions, company strategy or other factors occur; (5) the effects of past or future terrorist attacks, and (6) the other factors discussed in our filings with the Securities and Exchange Commission. Aether undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results could differ materially for a variety of reasons and circumstances. (a) Fleet Owner Magazine 2001 Media Kit |
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