Datacom Wireless Corporation
TSX VENTURE : DAT

Datacom Wireless Corporation

August 28, 2009 16:10 ET

Datacom Wireless Corporation: 95% Reduction in Net Loss for the Second Quarter of 2009

To the attention of Business and Financial Editors

LAVAL, QUEBEC--(Marketwire - Aug. 28, 2009) - Datacom Wireless Corporation ("Datacom" or "the Corporation") (TSX VENTURE:DAT), a Canadian leader in the design, development and marketing of vehicle fleet management and theft prevention solutions, today announced its 2009 second quarter results.

HIGHLIGHTS

The Corporation recorded a net loss of $52,763 for the second quarter of 2009, an improvement of 95% from the $974,088 net loss posted in the second quarter of 2008. These favourable results further reflect the Corporation's strategic realignment initiated in 2008.

The ongoing impact of the 2008 realignment effort significantly reduced expenses in 2009. Expenses of $0.942 million were down 57.7% from the $2.225 million recorded in the second quarter of 2008. As a percentage of revenue, expenses plunged from 84% in the second quarter 2008 to 55% in the same period of 2009, further reflecting the organization's efforts to better align revenues and costs.

The Corporation boosted its gross margin by 7.7 percentage points to 51.5% in the second quarter of 2009, compared with 43.8% for the same period in 2008. While revenues were down due to the closure of the analogue network and the halt in sales of digital security products, the Corporation managed to increase gross margin with effective cost control measures.

Although the 437 Mobicom units, sold in the second quarter of 2009 were down 13% compared to the 502 units sold in the same period of 2008, the Corporation is satisfied with this result as the number of sold units is higher than Management's forecasts after consideration was made for the closure of the Alberta office in January and a significant reduction in the Ontario sales force.

As anticipated, the 3,068 Mobiguard units sold in the second quarter of 2009 were 37% less than the 4,867 units sold during the second quarter of 2008.

Revenues were adversely affected as a result of the loss of recurring analogue income and the loss of proceeds caused by the termination of sales of Mobilus and Vigil digital products. Revenues for the quarter were $0.922 million or 35% of the figure for the same quarter of 2008. This decrease is consistent with management's forecasts.

As at June 30, 2009 the total number of outstanding shares in Datacom was 27,951,221.

About Datacom Wireless Corporation:

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.

Forward-Looking Statements:

This press release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "in view of", "in order to" and other similar words, or statements that certain events or conditions "may" or "will" occur. All statements in this release, other than statements of historical facts, that address future events or developments that the Corporation expects or anticipates, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

All trademarks and brands mentioned in this Press Release are the property of their respective owners.

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