Science & Technology
Science and Technology
Science and Technology
Tue, January 6, 2009 Alanco Posts Strong Second Quarter Sales Growth
SCOTTSDALE, Ariz.--([ BUSINESS WIRE ])--Alanco Technologies, Inc. (NASDAQ: ALAN) today announced that sales revenue for its fiscal second quarter ending December 31, 2008, increased 40% to approximately $5,300,000 compared to $3,770,000 in the prior year period. Sales for the initial six-month period of fiscal year 2009, ending December 31, 2008, increased 36% to approximately $11,300,000 versus $8,320,000 in fiscal 2008's first half period.
Robert R. Kauffman, Alanco Chairman & CEO, commented, "We are gratified that our core businesses, StarTrak Systems and Alanco/TSI PRISM, have both exhibited resilient sales growth during an obviously economically challenging period.
"Alanco/TSI PRISM second quarter sales increased three-fold to $1,100,000, benefiting from a large order backlog, particularly the partial completion of its largest project-to-date, the Washington D.C. jail. We anticipate continuing strong growth for our RFID inmate tracking business in the fiscal year second half, as our new contract from Northrop Grumman commences January, 2009 to provide RFID inmate tracking systems for nineteen (19) federal immigration detention facilities, housing in excess of 20,000 inmates. The Northrop contract will be the Company's, and probably the world's, largest deployment of active RFID personnel tracking technology.
"Second quarter and first half sales for StarTrak Systems wireless information management services increased 37% to $3,350,000 and 20% to $6,700,000, respectively, compared to the comparable prior year periods. During the second quarter, StarTrak added in excess of 20 new customers, deploying over 1,200 new monitoring systems, including truckload carriers, food distributors, biopharmaceutical shippers, and intermodal transportation companies. We expect continued StarTrak sales growth in the second half from both our core refrigeration transport monitoring services, and from recently announced new business opportunities, including hazmat tank car monitoring (December 8, 2008 release) and our MicroLogic acquisition (November 10, 2008 release)."
Mr. Kauffman also commented on the current status of Alanco's compliance with NASDAQ's minimum bid price listing requirement as follows, "On December 19, 2008, due to ‘extraordinary market conditions,' NASDAQ extended its suspension of the rules requiring a minimum $1.00 bid price for continued listing until April 20, 2009. As in past years, we have again requested standby approval from our shareholders to execute a reverse share split ‘only if necessary' to maintain our NASDAQ listing. I wish to emphasize, however, that we are not contemplating a reverse split within the foreseeable future. We are confident that, given any semblance of market recovery, we will be fully compliant with NASDAQ's minimum bid price requirement within the prescribed time frame."
Alanco Technologies, Inc. (NASDAQ: ALAN), headquartered in Scottsdale, Arizona, is a rapidly growing provider of wireless tracking and asset management solutions through its StarTrak Systems and Alanco/TSI PRISM subsidiaries. Corporate website: [ www.alanco.com ]
StarTrak Systems is a leading provider of GPS tracking and wireless asset management services to the transportation industry and the dominant provider of tracking, monitoring and two-way control services to the refrigerated or "Reefer" segment of the transportation marketplace, including refrigerated trailers, trucks, railcars, and containers. StarTrak products increase efficiency and reduce costs of the refrigerated supply chain through the wireless monitoring and control of critical Reefer data, including GPS location, cargo temperatures and Reefer fuel levels. Additional information is available at [ www.StarTrak.com ].
Alanco/TSI PRISM is the leading provider of RFID real-time tracking technologies for the corrections industry. TSI PRISM systems track and record the location and movement of inmates and officers, resulting in enhanced facility safety and security and significant staff productivity improvements. Utilizing proprietary RFID (Radio Frequency Identification) tracking technology, TSI PRISM provides real-time inmate and officer identification, location and tracking both indoors and out. The technology is currently utilized in prisons in Michigan, California, Illinois, Ohio, Missouri, Virginia, Indiana, and Minnesota and is being installed in Sacramento County, Australia, and the Washington, D.C. jail. Additional information is available at [ www.TSIPRISM.com ].
The Company also participates in the data storage industry through its wholly owned subsidiary, Excel Meridian Data, Inc. (EMD), which specializes in providing unique data storage, backup and disaster recovery solutions. EMD Storage product lines include: direct attached storage (DAS), network attached storage (NAS) and storage area network (SAN) solutions for any size business. In addition, EMD features partnerships with: EqualLogic, VMware, Microsoft, DoubleTake and other industry leading hardware and software solution providers. For more information, visit: [ www.emdstorage.com ].
EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.ALL SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THOSE STATEMENTS.THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT; COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW TECHNOLOGIES WHICH MAKE THE COMPANY'S PRODUCTS OBSOLETE; RAPID INDUSTRY CHANGES; FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY'S STRATEGIES; THE ABILITY TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND TO REMAIN IN COMPLIANCE WITH FINANCIAL LOAN COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY CONTRACTS AND RELATIONSHIPS.
