Datacom Wireless Corporation

Datacom Wireless Corporation

May 28, 2009 11:22 ET

Increase of Mobicom Unit Sales by 59% and Reduction of 73% in Net Loss

LAVAL, QUEBEC--(Marketwire - May 28, 2009) -

To the attention of Business and Financial Editors

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 first quarter results.


Sales for Mobicom, Datacom's flagship product, significantly increased in the quarter. The 479 Mobicom units sold in the first quarter 2009 was 59% more than the 301 units sold in the same period in 2008.

Net Loss of $0.302 million, in the period, was down 73% compared to the same first quarter period in 2008, in which the corporation's Net Loss was $1.105 million. These favourable results further reflect the strategic realignment initiated by the corporation in 2008.

The Corporation increased its gross margin by 6.3 percentage points to 49.4% in the first quarter in 2009, compared with 43.1% 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 its gross margin with effective cost control measures.

The continued impact of the Corporation's realignment efforts in 2008 resulted in significant reductions in expenses in 2009. The expenses of $1.158 million where down 43.7% from the $2.055 million for the first quarter of 2008,. The significant reduction in expenses as a percent of revenue from 93% in first quarter 2008 to 67% in the same period 2009 reflects the organizations efforts to better realign revenues and expenses.

As anticipated, sales of Datacom's consumer product Mobiguard were down 12.6%, when the 2,457 units sold in 2009 are compared with the 2,812 units sold during the first quarter of 2008.

Overall revenues were adversely affected by $0.469 million or 21% when compared to the first quarter of 2008. This decrease is mostly due to the loss of recurring analogue income and the loss of proceeds due to the halt in sales of Mobilus and Vigil digital products. This decrease is consistent with Management's forecasts.

The total number of outstanding shares, as at March 31, 2009 is 27,951,121 Common shares.

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.

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