TeleCommunication Systems Sells Two of Its Three Enterprise Business Units
26 1월 2007 - 1:19AM
PR Newswire (US)
ANNAPOLIS, Md., Jan. 25 /PRNewswire-FirstCall/ -- TeleCommunication
Systems, Inc. (TCS) (NASDAQ:TSYS), a global leader in
mission-critical wireless communication technology, announced today
that it has sold two of its three Enterprise Division units to
strategic buyers in exchange for restricted stock in the acquiring
companies and earn-out arrangements. The Enterprise Division
business units were acquired by TCS from Aether Systems in early
2004 and have been classified as discontinued operations in TCS'
2006 quarterly financial reports. TCS has been granted certain
registration rights with respect to the shares of restricted stock.
The Mobile Finance unit, including the unit's US and European
operations, has been sold to Stockgroup Information Systems, Inc.
(OTC:SWEB) (BULLETIN BOARD: SWEB) (TSX-V: SWB), a leading financial
media company based in Vancouver, British Columbia, Canada. This
transaction is expected to close by the end of the month. Assets of
the Mobile Office unit doing business as mobeo(R) have been
acquired by MobilePro Corp. (OTC:MOBL) (BULLETIN BOARD: MOBL) , a
broadband telecommunications services company based in Bethesda,
Maryland. This transaction closed earlier this month. Both
subscriber-based business units had been transitioning from
services based on data-only and pager based networks, and had
generated operating losses for TCS during 2005 and 2006 as the
books of customer subscriptions for updated offerings were rebuilt.
While TCS is exiting the Enterprise wireless data space, its
election to take equity positions in the acquiring companies
reflects its expectation that each operation presents opportunities
for future growth and profitability. Consideration received by TCS
includes 1.5 million shares of SWEB and 9 million shares of MOBL.
The remaining TCS Enterprise business unit is the Mobile Asset
Management Division, which delivers proprietary proof-of-delivery
and asset tracking technology for logistics management customers
using wireless hand-held devices. Preliminary results for this unit
indicate that total yearly revenues grew from $6.5 million in 2005
to $10 million in 2006, and that the unit was breakeven to
profitable in the fourth quarter of 2006. Arrangements for sale of
this unit are progressing and TCS expects the sale to be completed
during the current quarter. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030618/TSYSLOGO ) This
announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities and Exchange Act of 1934, as amended.
These statements are based upon TCS's current expectations and
assumptions that are subject to a number of risks and uncertainties
that would cause actual results to differ materially from those
anticipated. The words, "believe," "expect," "intend,"
"anticipate," and variations of such words, and similar expressions
identify forward-looking statements, but their absence does not
mean that the statement is not forward-looking. Statements in this
announcement that are forward- looking include, but are not limited
to statements (i) regarding TCS' expectation that the operations of
Stockgroup Information Systems, Inc. and Mobilepro Corp. presents
opportunities for future growth and profitability and (ii) that TCS
expects to complete the sale of the Mobile Asset Management
Division during the current quarter. Additional risks and
uncertainties are described in the company's filings with the
Securities and Exchange Commission (SEC). These include without
limitation risks and uncertainties relating to the company's
financial results and the ability of the company to (i) reach and
sustain profitability when anticipated, (ii) continue to rely on
its customers and other third parties to provide additional
products and services that create a demand for its products and
services, (iii) conduct its business in foreign countries, (iv)
adapt and integrate new technologies into its products, (v) expand
its business offerings in the new wireless data industry, (vi)
develop software and provide services without any errors or
defects, (vii) protect its intellectual property rights, and (viii)
implement its sales and marketing strategy.. Existing and
prospective investors are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. The company undertakes no obligation to update or revise
the information in this press release, whether as a result of new
information, future events or circumstances, or otherwise.
http://www.newscom.com/cgi-bin/prnh/20030618/TSYSLOGO
http://photoarchive.ap.org/ DATASOURCE: TeleCommunication Systems,
Inc. CONTACT: Tom Brandt, Senior Vice President and CFO of
TeleCommunication Systems, Inc., +1-410-280-1001, ; or Scott
Liolios, Investor Relations of Liolios Group, +1-949-574-3860, ,
for TeleCommunication Systems, Inc. Web site:
http://www.telecomsys.com/
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