SkyBitz - Blog http://www.skybitz.com/blog/ en Copyright 2011 2011-12-05T00:10:07+00:00 Telular Announces the Acquisition of SkyBitz; Extending Its Portfolio of Leading M2M Solutions http://www.skybitz.com/blog/telular-announces-the-acquisition-of-skybitz-extending-its-portfolio-of-lea/ http://www.skybitz.com/blog/telular-announces-the-acquisition-of-skybitz-extending-its-portfolio-of-lea/#When:00:10:07Z - SkyBitz is a North American Market Share Leader in Asset Tracking with Approximately 190,000 Assets Tracked
- Complementary Company Profile to Telular with 45% of Revenue from High Margin, Recurring Services; Annual Revenue is Approximately $35 Million
- Expected to be Immediately Accretive to Net Income before Non-Cash Items Upon Close, Which is Expected by the End of Fiscal Second Quarter

Chicago, IL,— December 5, 2011 - Telular Corporation (NASDAQ: WRLS), a global leader in connecting businesses and machines over wireless networks, today announced the signing of a definitive merger agreement to acquire SkyBitz, Inc.- the leading provider of mobile resource management (“MRM”) solutions focusing on tracking and management of truck trailers, intermodal containers, sea-going containers, rail cars, power generators and rental equipment.  The acquisition expands Telular’s position in the M2M space as a result of SkyBitz’s broad base of additional customers and proprietary SAAS technology platform.  The combined companies will create the largest “pure player” asset tracking and management company in the world.

SkyBitz’s unique Global Locating System (GLS) satellite-based technology provides real-time visibility of many asset types.  SkyBitz addresses a multi-billion dollar market opportunity by reducing operating costs, increasing efficiency and aiding in the compliance with regulatory requirements across an increasingly complex set of supply chains and business ecosystems.

Transaction terms include a purchase price of $42 million, comprised of $35 million in cash and $7 million in newly issued shares of common stock.  The cash portion will be financed with a $30 million five-year bank loan and cash on hand.  The acquisition is subject to the approval of a communications license transfer by the FCC, and is expected to close in 60-90 days.

For the current fiscal year ending December 31, 2011, SkyBitz expects to record $35 million of revenue, of which 45% will be derived from recurring monitoring services, and net income before non-cash items of approximately $5.0 million.  Further, by the end of their calendar fiscal year, SkyBitz expects to be tracking and managing approximately 190,000 assets, a net increase of approximately 11% over the end of the prior year.

The expected impact on Telular’s projected 2012 results as previously announced is dependent upon the actual closing date of the transaction, and will be provided at that time.  However, Telular does expect the acquisition to be accretive to its 2012 non-GAAP measure of net income before non-cash items.

“I am very excited about the acquisition of SkyBitz as it gives us the leading position in an adjacent M2M vertical market, provides immediate incremental cash flow and builds upon our stream of high-margin, recurring service revenues,” said Joseph Beatty, president and chief executive officer of Telular Corporation.  “SkyBitz’s management approach and growth objectives fit very well with Telular’s strategy and include growing its installed base of units, enhancing its international presence, and entering new vertical markets related to asset tracking.  Combined with Telular’s existing portfolio of Telguard and TankLink services, we can address a much larger market opportunity and expand our technology base with satellite communications capabilities that will complement our historical expertise in cellular communications.  We believe that this acquisition will help us accelerate our growth and profitability in the wireless space while maintaining a strong financial position and staunchly supporting a tangible return to our shareholders in the form of a quarterly dividend.”  

Dr. Homaira Akbari, president and chief executive officer of SkyBitz, brings 20 years of experience in sales, marketing, product development, consulting and operations, and plans to remain with the combined company as president of SkyBitz.  In addition, SkyBitz’s experienced management team is expected to stay in its entirety to help grow the asset tracking business and continue developing related, add-on services in the areas of cargo security, cargo status monitoring, preventative maintenance and other applications which will be soon announced.  SkyBitz’s employees will continue to work from their offices in the Washington, DC metropolitan area under the direction of Dr. Akbari.

“SkyBitz’s technology platform is the industry’s best-in-breed; providing a powerful, highly reliable solution that is complementary to Telular’s existing portfolio of M2M solutions,” explained Dr. Akbari.  “As the market leader in asset tracking, we have developed cutting-edge SAAS solutions that are well suited to serve many industries, including government, due to the patented way in which we use GPS signals to determine the location of critical assets.  My team and I look forward to continued, profitable growth as part of the Telular family of wireless solutions.”

Oppenheimer & Co. Inc. is serving as the exclusive financial advisor to SkyBitz.

Investor Conference Call

 

Telular’s will host a conference call at 8:30 a.m. ET today, December 5, 2011, concerning this acquisition.  To participate on the teleconference from the United States and Canada dial 877-941-0844 (International dial 480-629-9835). A replay of the call will be available starting today at 11:30 a.m. ET through December 8, 2011 ending at 12:00 a.m. ET by dialing: 800-406-7325 (enter pass code 4492507#) or internationally at: 303-590-3030 (enter pass code 4492507#). The replay will also be available via webcast from the Company's corporate website at http://www.telular.com.

About Telular Corporation

Telular Corporation provides remote monitoring solutions for business and residential customers, enabling security systems and industrial applications to exchange actionable information, typically through the use of wireless technology. With over 20 years of experience in the wireless industry, Telular Corporation has developed solutions to deliver remote access for voice and data without significant network investment or disruption. Headquartered in Chicago, Telular Corporation has additional offices in Atlanta and Miami. For more information, please visit www.telular.com.

About SkyBitz, Inc.

SkyBitz is a leader in global remote asset management solutions, providing real-time information on the location and status of assets. More than 700 enterprises rely on SkyBitz technology to achieve total asset visibility, improved security, lower operating and capital expenses, and enhanced customer service. SkyBitz delivers its solution via SkyBitz Insight, a secure web-based application that is fully customizable and requires no software downloads. SkyBitz is a privately held company backed by Garvin Hill Capital Partners LLC, Highstar Capital Fund I, Inverness Graham Investments, Motorola Ventures and ITV, a fund of Cordova Ventures. For additional information, visit www.skybitz.com or the company blog at www.skybitz.com/blog.

Safe Harbor

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. Statements regarding expectations, including performance assumptions, estimates relating to future cash flows, levels of demand for our products, dividend amounts and capital requirements, as well as other statements that are not historical facts, are forward-looking statements. For example, the statement ”SkyBitz expects to record $35 million of revenue”, “SkyBitz expects to be monitoring approximately 190,000 assets”, and “Telular does expect the acquisition to be accretive to its 2012 non-GAAP measure of net income before non-cash items” are forward-looking statements.  These statements reflect management’s judgments based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer growth and retention, pricing, operating costs and the economic environment. 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 and Form 10-K/A for the fiscal year ended September 30, 2010. Copies of these filings may be obtained by contacting the Company or the SEC.


Media Contact:
Pam Benke   
Telular Corporation   
pbenke@telular.com  
(678)909-4616

Investor Relations Contact:
Brinlea Johnson
The Blueshirt Group
brinlea@blueshirtgroup.com
(212) 331-8424

]]> SkyBitz News, Industry News 2011-12-05T00:10:07+00:00 New Report on Fleet Management from Berg Insight http://www.skybitz.com/blog/new/ http://www.skybitz.com/blog/new/#When:02:16:23Z Berg Insight published their new report on Fleet Management in the Americas as part of their M2M Research Series.

Berg Insight expects the market for fleet management will continue to show healthy growth in 2011. In the North American market, the number of fleet management systems in active use is forecasted to grow at a compound annual growth rate (CAGR) of 12.6 percent from 2.1 million units in 2010 to 3.8 million units by 2015. The penetration rate in the total population of non-privately owned commercial vehicles is estimated to increase from 16.3 percent to 29.5 percent in 2015. In Latin America, the number of fleet management systems in use is projected to increase from 0.9 million units in 2010, growing at a CAGR of 20.6 percent to reach 2.3 million units in 2015. The penetration rate among non-privately owned commercial vehicles in the region is estimated to increase from 4.5 percent in 2010 to 11.6 percent in 2015.

Highlights from this report:
•    Insights from 30 new executive interviews with market leading companies.
•    Data on vehicle populations and commercial fleets in Americas.
•    Comprehensive overview of the fleet management value chain and key applications.
•    In-depth analysis of market trends and key developments.
•    Updated profiles of 50+ aftermarket fleet management solution providers.
•    Summary of OEM propositions from truck and construction equipment brands.
•    Market forecasts lasting until 2015.

You can download the brochure on the report here.

Disclaimer: SkyBitz contributed to the report.

]]> 2011-05-10T02:16:23+00:00 Cross-border trucking deal with Mexico- a sign of the times? http://www.skybitz.com/blog/cross-border-trucking-deal-with-mexico-a-sign-of-the-times/ http://www.skybitz.com/blog/cross-border-trucking-deal-with-mexico-a-sign-of-the-times/#When:02:03:49Z Last month, President Obama and Mexican President Felipe Calderón unveiled a deal to resolve a longstanding dispute over cross-border trucking.


No matter where you stand on the cross-border trucking deal with Mexico, it is going to become a reality. Companies that choose to ignore the issue do so at their own peril and those who prepare-- stand to profit.


Additionally, the Department of Transportation (DOT) recently unveiled a three-year pilot program to allow Mexican trucks to enter the U.S. after meeting multiple safety-related steps. Part of the requirements is a “global positioning system and/or electronic on board recording device”.


The announcement of this US/Mexico cross-border deal is yet another sign of the times for increased international trade. Carriers and logistics companies should take advantage of this time to prepare for business expansion into cross-border hauling. While it will likely be required for CSA-type safety technology to be installed in-cab, U.S. and Mexican trucking and logistics companies also need to consider the importance of trailer tracking technology solutions.


These businesses can benefit from a trailer tracking technology solution that operates on a two-way satellite communication, allowing them to change reporting requirements over the air as their needs change.  They need a solution that can report the location of a trailer even after its been dropped, which often times means it has no access to an external power source, and can integrate sensor technology for additional cargo information. By enabling visibility of trailers while on the move, businesses can not only stay in compliance with the government but also improve security, customer satisfaction and just-in-time logistics by maintaining continuous control of goods. Companies that already have this technology installed on their trailers have a competitive advantage over those that do not.


We’ve seen similar requirements from the federal government on U.S. Arms, Ammunitions, and Explosives (AA&E) haulers in terms of high reporting in-transit visibility. Some of the main requirements for certified AA&E haulers are trailer tracking, door sensor capability, reporting of tether/un-tether events (between tractor and trailer) and integration to the government’s software platform, IRRIS. While the US/Mexico cross-border deal may not be as safety-critical as the AA&E certification program, there is still a huge security issue which is obviously a great concern for the Department of Homeland Security, whereby more regulations are likely to follow.


The key lesson learned from this example is that companies should invest in technology solutions that offer flexible and open platforms for integration into government systems, can offer high reporting rates while keeping power consumption ultra low, and has ubiquitous satellite coverage 24/7.

]]> 2011-04-25T02:03:49+00:00 Improving Q1 Profits for Landstar Systems http://www.skybitz.com/blog/improving-q1-profits-for-landstar-systems/ http://www.skybitz.com/blog/improving-q1-profits-for-landstar-systems/#When:05:13:27Z Here is another good sign of an improving economy for the transportation industry in the United States.  No. 11 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, Landstar System, said today that their Q1 profits improved due to higher freight demand, and that there first-quarter earnings rose because of improved pricing – which has also continued to improve into the second quarter.

The company’s net income rose to $20.6 million (43 cents a share), from $17.2 million (34 cents) from the year prior.  Revenue for the quarter ended March 26 rose to $572 million, from $548.1 million a year ago.

Chairman and CEO Henry Gerkens said in a statement that the company’s second-quarter earnings will be in a range of 56 to 61 cents per share due to this higher freight demand.  Mr Gerkens stated that he believes the trend will continue through 2Q.

]]> 2011-04-21T05:13:27+00:00 DOD Redoubles Its Efforts to Lower Costs Via RFID http://www.skybitz.com/blog/dod-redoubles-its-efforts-to-lower-costs-via-rfid/ http://www.skybitz.com/blog/dod-redoubles-its-efforts-to-lower-costs-via-rfid/#When:02:52:04Z According to RFID Journal - "After a decade of conducting pilots to track the movements of supplies using active and passive radio frequency identification tags across multiple agencies, the U.S. Department of Defense (DOD) is entering phase two of its RFID deployment, with an eye toward adopting end-to-end solutions, according to Paul Peters, the deputy assistant secretary of defense for supply chain integration. These end-to-end solutions would allow greater visibility across the DOD's supply chain, thereby reducing the risk of errors, enhancing safety and security, and lowering expenses through reductions in inventory and improved utilization of labor devoted to tracking items at each point along that supply chain."  Read more of this article here at RFID journal's website:

http://www.rfidjournal.com/article/view/8358

]]> 2011-04-20T02:52:04+00:00 Tracking America’s Rail Cars - Are We Doing Enough? http://www.skybitz.com/blog/tracking-americas-rail-cars-are-we-doing-enough/ http://www.skybitz.com/blog/tracking-americas-rail-cars-are-we-doing-enough/#When:07:07:10Z According to the most recent Railroad Facts 2010 edition from the American Association of Railroads, approximately 9.88 Million trailer and containers traveled across the United States in 2009.  The data further breaks down to 1.64 Million Trailers versus 8.24 Million containers.   In 1990, there were just 6.2 Million of these combined assets on the railroads.  More striking, the number of containers has risen during that time from 2.75 Million to the 8.24 Million in 2009.

What does this mean?

More and more our transportation providers are moving goods from the truck to rail and back to truck again.  This means the chain of custody of those goods is changing multiple times during the trip.   It also means that our transportation system has vulnerabilities far beyond the possibility of a high jacked truck. 

How many of these containers are tracked continuously tracked through their travels?  How do we know that during the many stops along the rail passage that a container is not broken into – goods being stolen or perhaps something more insidious?

As we continue as a country to look at how we can make our infrastructure safer, we must look beyond the tractor and trailer rolling down the road.  We must ensure that we have a clear understanding of where our food travels beyond the road.  We must have the peace of mind that what is rolling on the rails into our major cities are as safe as the trucks that roll on the road. 

]]> 2011-01-20T07:07:10+00:00 Successful Launch of SkyTerra 1 Satellite http://www.skybitz.com/blog/successful-launch-of-skyterra-1-satellite/ http://www.skybitz.com/blog/successful-launch-of-skyterra-1-satellite/#When:03:53:29Z The launch of the satellite, which is among the most powerful commercial satellites ever built, is a major step in the creation of LightSquared's next-generation network combining satellite and terrestrial technologies, the company said.  The Proton Breeze M vehicle lifted off from Kazakhstan's Baikonur Cosmodrome at 12:29 p.m. EST Sunday, followed by spacecraft separation and on-schedule signal acquisition nine hours later at around 9:45 p.m. EST.  

Watch the video of the launch on YouTube here.   LightSquared is formally known as SkyTerra. 

]]> 2010-11-15T03:53:29+00:00 INSIDE THE WORLD OF CARGO HIJACKING http://www.skybitz.com/blog/inside-the-world-of-cargo-hijacking/ http://www.skybitz.com/blog/inside-the-world-of-cargo-hijacking/#When:05:39:19Z

According to a recent CBS report:  “In 2009 there were 864 reported thefts of goods from trucks or warehouses across the country - more than two per day. And 2010 is on track to be even worse.  As the economy inches toward recovery, a lot of businesses are still struggling to keep up. But an illegal industry is doing better than ever: cargo theft. Losses from these robberies add up to as much as $37 billion a year in the U.S. -- forcing all of us to pay more for everything from computers to medicine to sneakers. Chief Investigative correspondent Armen Keteyian has an exclusive look inside the criminal world of cargo hijacking.”


Watch this CBS video on the smuggling ring.  Do all your trailers have trailer tracking on them to prevent theft?

 

]]> 2010-10-29T05:39:19+00:00 Dispatch from ATA 2010 http://www.skybitz.com/blog/dispatch-from-ata-2010/ http://www.skybitz.com/blog/dispatch-from-ata-2010/#When:06:31:55Z One of the great things about being at ATA Management Conference & Exhibition each year is to catch up with others in the trucking industry and hear what is on their minds. This year at ATA in Phoenix, AZ, I’ve been meeting with SkyBitz customers, trade media, other vendors, and trucking companies to ask them what they’ve been hearing and share with them what SkyBitz is up to. The overall sentiment was that growth is happening in the economy but it is slow.  Many are predicting that ATA 2011 will be at the cusp of huge growth for trucking.  Some of the hot topics I heard about from trucking companies were:

  • CSA 2010 regulations in general – obviously this one is still big in the minds of the industry.
  • Maintenance of equipment – the past few years of keeping belts tight has created a buildup of maintenance needs and costs.
  • A possible driver shortage and mandated less hours of service would result in having to use their equipment more efficiently, which in turn means utilizing trailer tracking but also using more trailers.
  • New trailer purchases are up by 70%, which was more than I think most had expected. 
  • Manufacturing will focus more on the global market, moving from Brazil, Russia, India, and China (BRIC) to the Next Eleven (N-11), which are the eleven countries of Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey, and Vietnam.  These markets were identified by Goldman Sachs investment bank as having a high potential of becoming the world's largest economies in the 21st century along with the BRICs.
  • Manufacturing companies such as Daimler, are becoming more  focused on services – for example, 50% of their revenues need to come from services such as Zonar.
  • Companies who don’t have assets are looking for acquiring small asset-based companies as they need it to service their customers in a fuller manner.


I’m sure these topics are no big surprise to many, and only confirms what we all thought were some the top issues of the year. However, what I thought was particularly interesting was that many of the issues that were discussed can be directly impacted by trailer tracking solutions. Equipment maintenance, the driver shortage, less hours of service, global manufacturing, and manufacturing services, can all be better managed when trucking and logistics companies have the right information to make better decisions and control costs and resources. Information on location and the condition of trailers is how these issues are addressed.

]]> 2010-10-19T06:31:55+00:00 TrailerTail Technology http://www.skybitz.com/blog/trailertail-technology/ http://www.skybitz.com/blog/trailertail-technology/#When:02:33:53Z Sean Kilcarr from Fleet Owner wrote an interesting blog article the other day on the TrailerTail rear aerodynamic device built by ATDynamics, Inc.  One of the fleets highlighted in his article was Mesilla Valley Transportation (MVT), who has recently adopted the TrailerTail technology. 


Mesilla Valley’s CEO, Royal Jones, stated “In our industry, being more efficient means being more competitive.”   What should also be mentioned is that Mesilla has been investing in technology, especially trailer technology, for years now in order to become more competitive.  They truly understand how to apply the technology to make their operations more competitive and efficient. 


Several years ago MVT’s installed 2,400 SkyBitz mobile terminal units across its entire fleet, which provided instant visibility to all the trailers. Since deploying this technology, MVT’s fleet managers now have access to the exact location and status of every trailer within the fleet at any time. In addition, they can perform basic scheduled reports, page trailers when necessary, perform yard checks from their desks, and when they suspect theft, put a trailer into “panic mode” to be monitored every three minutes (read more on this here).


In addition to MVT’s ability to recover lost or stolen trailers, incorporating SkyBitz technology into its arsenal of tools has significantly helped with the company’s truck-to-trailer ratio. Before the installation of the new technology, the trailer to tractor ratio was 3.4 to 1. Today, the ratio stands at 2.6 to 1. The company can also bill for detention which it did not previously do. With detention billing averaging $30,000 to $45,000 per month, the tracking system virtually pays for itself and has led to record growth for MVT.  Watch a video of how MVT puts their trailer tracking solution into action by clicking here.

]]> 2010-09-17T02:33:53+00:00