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Telular Corporation Reports First Quarter 2009 Results

^{Published on 2009-01-29 16:29:07, Last Modified on 2009-01-29 16:31:29 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Telular Corporation (NASDAQ: WRLS):

- Company Delivers Tenth Consecutive Quarter of Profitability from Continuing Operations

- Recurring Revenue Increases to 48% of Total Revenue

- Company Continues to Exercise Share Repurchase Program

- Maintains Strong Balance Sheet and No Debt

Telular Corporation, the global leader in transforming analog into wireless communications, today announced financial results for first quarter ended December 31, 2008. Telular reported positive income from continuing operations for the tenth consecutive quarter and continues to maintain a very strong balance sheet. The Company reported first quarter net income of $117,000, or $0.01 per diluted share on revenues of $10.8 million.

For the first quarter of 2009, income from continuing operations before non-cash items was $937,000. This compares to $2.9 million in the first quarter of 2008. Income from continuing operations before non-cash items is a non-GAAP measure which adds back depreciation and stock-based compensation expense to income from continuing operations. For further information, please see the reconciliation of this measure to income from continuing operations in accordance with GAAP, on the last page of this press release.

Telguard product revenues increased to $3.1 million from $2.9 million in the fourth quarter of 2008. Telguard service revenues were $4.9 million compared to $4.7 million in the fourth quarter of 2008. In the first quarter of 2009, Telular sold approximately 21,000 Telguard units and activated roughly 23,000 new Telguard subscribers resulting in approximately 423,000 total Telguard subscribers at quarter end. Terminal sales were $1.9 million in the first quarter of 2009, compared to $3.9 million in the fourth quarter of 2008.

During the first quarter of 2009, the Company purchased over 605,000 shares of its common stock under the stock repurchase program for approximately $875,000, and ended the period with $19.3 million in cash and equivalents.

"In the first quarter, we achieved our tenth consecutive quarter of profitability from continuing operations and began recording revenue from our recent acquisition of SupplyNet Communications - a leading wireless tank-level monitoring company," commented Joe Beatty, president and chief executive officer of Telular Corporation. "We continue to generate cash and maintain a very strong balance sheet, as we repurchase shares and evaluate new opportunities in the Machine-to-Machine (M2M) space to drive future growth.

"Recurring revenue increased to approximately 50% of our total revenue this quarter due to the combination of our large base of Telguard subscribers with new, tank-level monitoring customers brought to us through our SupplyNet acquisition. We remain focused on growing service revenues, adding new subscribers and diversifying our customer base," concluded Mr. Beatty.

Investor Conference Call

Telular's quarterly conference call will be held today at 4:30 P.M. Eastern Time. To participate on the teleconference from the United States and Canada dial 800-366-7640 (International dial 303-262-2130). You may also monitor the call via webcast at [ www.telular.com ] (select Earnings Conference Calls in Investor Relations). A replay of the call will be available from Thursday, January 29, 2009 beginning at 6:30 p.m. ET through Saturday, January 31, 2009 ending at 11:59 p.m. ET by dialing 800-405-2236 (enter pass code 11125669#) or internationally at 303-590-3000 (enter pass code 11125669#).

About Telular

Telular Corporation provides event monitoring and wireless access solutions for business and residential customers, enabling devices such as phones, faxes, computers and commercial machinery to be connected using 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 ].

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. 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 for the fiscal year ended September 30, 2007 Copies of these filings may be obtained by contacting the Company or the SEC.

Reconciliation of Non-GAAP Measures

We use income from continuing operations before non-cash items as an additional measure of our operating performance. This measure is not recognized under generally accepted accounting principles. The reconciliation below demonstrates how we calculate this measure from our financial statements.

Income from continuing operations before non-cash items should be considered in addition to, but not as a substitute for, other measures of performance reported in accordance with accounting principles generally accepted in the United States. While we believe that income from continuing operations before non-cash items, as defined above, is useful within the context described above, it is in fact incomplete and not a measure that should be used to evaluate the full performance of Telular Corporation. Such evaluation needs to consider all of the complexities associated with our business, including, but not limited to, how past actions are affecting current results and how they may affect future results, how we have chosen to finance the business and how regulations and other aforementioned items affect the final amounts that are or will be available to shareholders as a return on their investment. Net loss determined in accordance with U.S. GAAP is the most complete measure available today to evaluate all elements of our performance.