SkyBitz - Blog

How Technology is Leading Operational Efficiencies in the Transportation Industry

2013-05-12T23:51:08+00:00

This week SkyBitz will be at the ALK Transportation Technology Summit in Princeton, New Jersey to join other leaders in the transportation industry for candid discussions on ways technology will continue
to move the industry forward. As part of our participation in the event, our SVP and General Manager, Henry Popplewell, will be speaking on Thursday, May 16th, sharing a Cloud-Based Asset Management case study with one of our customers, Taylor Truck Line.

Session Description: As a leader in remote asset information management for more than 10 years, SkyBitz has contended that asset optimization is not strictly hardware dependant-- what’s equally important is the information in the cloud. The Cloud model is driven by providing convenience for clients and relies on sharing of resources in order to achieve consistency across platforms. Taylor Truck Line relies on integrated information from providers such as SkyBitz, ALK Technologies, and TMW Systems to help them optimize their transportation network. There is a growing demand for more actionable information regarding asset location and status through shared information from multiple technology providers. Not only do transportation managers want more actionable information, they want to be able to access, view, and analyze it in a format that is customized to their company and/or role. In this session, the audience will hear first-hand from SkyBitz and Taylor Truck Line how customized and integrated information from the cloud can help optimize transportation networks.

Hosted by ALK Technologies, the Transportation Technology Summit has become a prominent industry event that brings together thought leaders from the transportation industry in a unique forum that includes a focus on education, industry developments, innovative products and solutions, and networking.

For additional details about the event, click here.

TRACKING THE CAPITOL CHRISTMAS TREE

2012-11-04T23:50:22+00:00

We at SkyBitz are proud to provide real-time tracking of the Capitol Christmas Tree’s cross country journey to the Nation’s Capitol at www.TracktheTree.com for the sixth time. We will be providing tracking data, complete with a detailed street-level map of the most recent location, via our satellite-based tracking solution.

The Capitol Christmas Tree will begin its 5,000 mile journey from Colorado’s White River National Forest to Washington, D.C. on November 6th and will arrive in the Nation’s Capitol on November 26th. Once the tree is decorated with ornaments constructed in Colorado and lights are attached, the tree will be lit by the Speaker of the House of Representatives in early December.

In addition to tracking information, TracktheTree.com will include photos and fun facts about many of the Capitol Christmas Tree tour stops and opportunities to interact with Capitol Christmas Tree followers on Facebook and Twitter. You can follow us on Twitter (@TracktheTree) and become a fan of our Facebook page at: www.Facebook.com/TracktheTree for the latest updates on the tree. For more information about the 2012 Capitol Christmas Tree you can also visit their website: www.capitolchristmastree2012.com.

Telular Announces the Acquisition of SkyBitz; Extending Its Portfolio of Leading M2M Solutions

2011-12-05T00:10:07+00:00

- 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

New Report on Fleet Management from Berg Insight

2011-05-10T02:16:23+00:00

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.

Cross-border trucking deal with Mexico- a sign of the times?

2011-04-25T02:03:49+00:00

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.

Improving Q1 Profits for Landstar Systems

2011-04-21T05:13:27+00:00

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.

DOD Redoubles Its Efforts to Lower Costs Via RFID

2011-04-20T02:52:04+00:00

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

Tracking America’s Rail Cars - Are We Doing Enough?

2011-01-20T07:07:10+00:00

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.

Successful Launch of SkyTerra 1 Satellite

2010-11-15T03:53:29+00:00

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.

INSIDE THE WORLD OF CARGO HIJACKING

2010-10-29T05:39:19+00:00

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?