Datacom Wireless Corporation: Increase of Mobicom Unit Sales by 55% and Reduction of 56% in Net Loss

4/28/09 - Datacom Wireless Corporation (TSX VENTURE:DAT), a Canadian leader in the design, development and marketing of vehicle fleet management and theft prevention solutions today announced its fourth quarter and year-end 2008 financial results.

Datacom has filed the following documents on the System for Electronic Documents Analysis and Retrieval ("SEDAR"): Audited Financial Statements for the year ended December 31, 2008 and 2007 and the Annual Management Report for the year ended December 31, 2008.

HIGHLIGHTS

The Corporation significantly increased its sales by 55% year over year for its flagship product: Mobicom compared to 2007. The Corporation also enjoyed a substantial 93% rise in 2008 sales compared to 2007 of its consumer product: Mobiguard.

The year 2008 was marked by major changes for the Corporation. A strategic realignment was completed, including a review of all activities to allow the Corporation to meet its growth and profitability targets. This exercise resulted in a significant reduction of expenses, particularly in staffing. Management also expects the impacts of the changes to continue in 2009.

Management believes that the Corporation has succeeded in meeting major challenges and has achieved highly encouraging results looking forward.

YEAR-END AND FOURTH QUARTER 2008 FINANCIAL RESULTS

For the year ended December 31, 2008, the Company's revenues totaled $9.388 million, up 19% compared to the 2007 result of $7.891 million.

The Corporation is particularly pleased by the rise in its gross margin during 2008. This figure climbed 8 percentage points to 46% in 2008, compared with 38% in 2007.

The Corporation also made major reductions in its operating expenses, in each quarter of 2008, dropping from $2.073 million, or 94% of revenues, for the first quarter of 2008 to $1.344 million, or 64.7% of revenues, for the fourth quarter of 2008.

The recorded Net Loss of $3,312,820 for 2008 includes an amount of $687,836 for Unusual Items related to the analogue technology shutdown and the halt in sales of Mobilus and Vigil security products. It also includes $603,909 related to the Devaluation of Intangible Assets. Excluding these two amounts, the Net Loss totals $1,921,076 compared to $4,389,884 in 2007.

The total number of outstanding shares, as of December 31, 2008, is 27,951,121 Common shares, 279,512 shares having been returned by Pierre Collins to the Corporation's Treasury further to his departure.

"During 2008, Management successfully met the challenge of reviewing our corporate and operational structure in view of being able to meet our profitability target. They implemented an action plan to support our new sales strategy, while reducing operating expenses," said Robert Latham, Chairman of the Board of Datacom. "This plan is designed in order to make the most effective use of assets providing the Company with the flexibility required for its future development through acquisitions, strategic partnerships or marketing of new products and services."

Founded in 1999, Datacom has grown to become one of the Canadian leaders in the design, development and marketing of mission critical vehicle fleet management and theft prevention solutions. Its products and services use wireless communications and satellite-based tracking technologies (GPS) and a state-of-the-art ASP information portal.

By Robert Hoskins

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Copyright © 2001-2010 Broadband Wireless Exchange, Inc.