Remote Dynamics, Inc. Announces First Quarter Financial Results
RICHARDSON, Texas--Jan. 20, 2005--Remote Dynamics, Inc. , a leading provider of telematics-based management solutions for commercial fleets, today reported financial results for the first fiscal quarter ended Nov. 30, 2005.Total revenues were $4.5 million for the first fiscal quarter ended Nov. 30, 2005, compared with total revenues of $6.8 million for the first fiscal quarter ended Nov. 30, 2004. The company reported a net loss of $1.2 million ($0.19 per diluted common share) for the 2005 fiscal first quarter, compared with a net loss of $3.3 million ($0.34 per diluted common share) for the comparable period for fiscal 2004.
In commenting on the company's results, Mr. Casey noted, "The decrease in service and equipment revenues was anticipated in our business plans as we made the decision to focus on completing the development of REDIview(TM) and prepare for the implementation of our sales and marketing strategy to coincide with the commercial launch of our new products. I am pleased to report that REDIview was commercially launched in accordance with our business plan timelines this week."
REDIview Commercially Launched on Jan. 1, 20058, 2005
REDIview, the company's next generation of mobile resource management solutions, is a state-of-the-art system that utilizes the very latest in leading edge and cost-effective hardware, software and wireless communications.
REDIview is an Internet and service bureau-based software application that provides an extensive array of real-time and accurate mapping, trip replay, and vehicle activity reports. In addition, REDIview includes a series of exception-based reports designed to highlight inefficiencies in the operations of a vehicle fleet. Utilizing Remote Dynamics' proven, high-capacity network operating center, customers may access their information securely through the Internet from any personal computer or other device.
REDIview also incorporates technologies that allow for fast and effective integration into legacy applications operated by companies with vehicle fleets and mobile workers. This design allows companies to easily extend their existing supply chain management systems to the mobile workforce for transaction processing and customer fulfillment. REDIview was also designed to be hardware and network agnostic to provide the maximum flexibility in designing solutions that best fit the customer's specific needs.
The REDI 2000 mobile data collection unit combines global positioning system (GPS) technologies along with the latest in wireless, Internet protocol-based communications to deliver, throughout the day, real-time location, speed, and other conditions of the vehicle on a minute-by-minute basis. In addition, the units may be configured to accept additional sensor inputs regarding operations of the vehicle and vehicle equipment.
About Remote Dynamics, Inc.
Remote Dynamics, Inc. (remotedynamics.com) markets, sells and supports state-of-the-art fleet management solutions that contribute to higher customer revenues and improved operator efficiency. Combining the technologies of the global positioning system (GPS) and wireless vehicle telematics, the company's solutions improve the productivity of mobile workers by providing real time position reports, route information and exception based reporting designed to highlight mobile workforce inefficiencies. Based in Richardson, Texas, the company also markets, sells and supports a customized, GPS-based fleet management solutions for large fleets like SBC Communications, Inc., which has approximately 30,000 installed vehicles now in operation.
Legal notice to investors: Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act 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," "believes," "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 by such forward-looking statements. Such factors include, among others, the following: acceptance of new product offerings; ability to successfully integrate mobile resource management products with customer's existing logistics management systems; ability to achieve sales projections; ability to achieve and maintain margins during periods of rapid expansion; availability of capital to fund expansion and change in business model to recurring revenue model; ability to attract and retain qualified sales personnel; market conditions; general economic and business conditions; business abilities and judgment of management and personnel; changes in business strategy and competition. 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.
"Remote Dynamics", "REDIview", "REDI 2000" and the Remote Dynamics logotype are trademarks and service marks of Remote Dynamics, Inc. "VMI" is a trademark and service mark of Minorplanet Limited.
REMOTE DYNAMICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
Unaudited
November August
30, 31,
2004 2004
--------- --------
Current assets:
Cash and cash equivalents $3,306 $1,312
Restricted cash 239 439
Accounts receivable, net 3,214 2,700
Inventories 835 674
Deferred product costs - current portion 877 980
Other current assets 971 987
--------- --------
Total current assets 9,442 7,092
Property and equipment, net 4,296 4,283
Deferred product costs - non-current portion 879 1,085
Goodwill 19,724 19,724
License right, net 1,101 1,207
Other intangibles, net 881 1,085
Lease receivables and other assets, net 1,151 1,280
--------- --------
Total assets $37,474 $35,756
========= ========
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,674 $2,167
Deferred product revenues - current portion 2,189 2,374
Accrued expenses and other current liabilities 4,052 5,335
--------- --------
Total current liabilities 7,915 9,876
Deferred product revenues - non-current portion 2,639 3,174
Note payable - HFS 2,000 2,000
Other notes payable 667 741
Other non-current liabilities 385 466
--------- --------
Total liabilities 13,606 16,257
--------- --------
Redeemable preferred stock - Series A 3,542 --
Stockholders' equity:
Common stock 78 75
Treasury stock (1,860) (1,860)
Additional paid-in capital 24,293 22,297
Deferred stock compensation (446) (472)
Accumulated deficit (1,739) (541)
--------- --------
Total stockholders' equity 20,326 19,499
--------- --------
Total liabilities, redeemable preferred stock
and stockholders' equity $37,474 $35,756
========= ========
REMOTE DYNAMICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Reorganized Predecessor
Company Company
--------------- -------------
Three months Three months
ended ended
November 30, November 30,
2004 2003
--------------- -------------
Revenues:
Product $249 $319
Ratable product 781 1,412
Service 3,494 5,086
--------------- -------------
Total revenues 4,524 6,817
--------------- -------------
Cost of revenues:
Product 194 389
Ratable product 337 717
Service 1,769 2,853
--------------- -------------
Total cost of revenues 2,300 3,959
--------------- -------------
Gross profit 2,224 2,858
--------------- -------------
Expenses:
General and administrative 1,368 2,100
Customer service 421 882
Sales and marketing 448 1,141
Engineering 321 442
Depreciation and amortization 644 1,138
--------------- -------------
3,202 5,703
--------------- -------------
Operating loss (978) (2,845)
Interest income 76 114
Interest expense (82) (531)
Other expense (101) (18)
--------------- -------------
Loss before reorganization items (1,085) (3,280)
Reorganization items (46) --
--------------- -------------
Net loss (1,131) (3,280)
Preferred stock dividend (67) --
--------------- -------------
Net loss attributable to common
shareholders $(1,198) $(3,280)
=============== =============
--------------- -------------
Basic and diluted loss per common share $(0.19) $(0.34)
=============== =============
Weighted average number of shares
outstanding:
Basic and diluted 6,241 9,670
=============== =============