SOURCE: Remote Dynamics, Inc.

November 13, 2009 13:24 ET

Remote Dynamics Reports Q3 2009 Financial Results

PLANO, TX--(Marketwire - November 13, 2009) - Remote Dynamics (OTCBB: RMTD) (www.remotedynamics.com), a provider of asset tracking and fleet management solutions, reports its financial results for the third quarter ended September 30, 2009.

Gary Hallgren, CEO of Remote Dynamics, commented, "We improved on the second quarter's positive adjusted EBITDA of $8,000 to post positive adjusted EBITDA of $64,000 in the third quarter, excluding a reversal of an accrued airtime credit. Going forward, the Company expects that its cost of service will decrease as a result of the one time adjustment. Additionally, the REDIview™ subscriber base increased for the second consecutive quarter in a row. Despite the tough economic conditions, we have been successful in continuing to demonstrate value to our customers by delivering a quick return on investment. Excluding the amortization of the deferred performance obligation in the prior year results, revenue grew 13% from the nine months ending 2009 compared to the nine months ending 2008."

Highlights for the quarter included:

--  REDIview subscriber base increased 5.5% from September 30, 2008 and
    increased 1.5% since December 31, 2008.  Ending REDIview units were 11,378
    versus 10,787 on September 30, 2008.
    
--  Total revenue for the three months ended September 30, 2009 totaled
    $1.29 million compared to $1.38 million during the three months ended
    September 30, 2008.  Service revenue for the three months ended September
    30, 2009 totaled $946,000 compared to $901,000 for the three months ended
    September 30, 2008.  This 5% increase is primarily attributable to an
    increase in units in service.  Units in service increased 5.5%, from 10,787
    units in the third quarter of 2008 to 11,378 in the third quarter of 2009.
    Ratable product revenue for the second quarter of 2009 was $321,000
    compared to $433,000 for the comparable period in 2008.  The 26% decrease
    is due to the completion of the amortization of the deferred performance
    obligation in 2008 which contributed to $152,000 of revenue in the
    comparable period of 2008 which was not included in the 2009 period.  The
    amortization of the deferred performance obligation was complete as of
    December 31, 2008.  Excluding the deferred performance obligation, ratable
    product revenue increased 14% from the comparable period in 2008.
    
--  Total gross profit margin was 40% for the three months ended September
    30, 2009 compared to 66% for the three months ended September 30, 2008.
    Service margin for the third quarter of 2009 was 42% compared to 66% for
    the third quarter of 2008.  The Company had been accruing an airtime credit
    of $221,000 based on an agreement with our airtime provider that reflected
    reduced pricing on a subset of units.  This agreement was renegotiated to
    adjust all rates on the Company's entire installed base, but only on a go-
    forward basis.  As a result, the accrued airtime credit for prior periods
    was no longer appropriate and was reversed in the third quarter (and
    therefore reflected an increase in cost of service).  Excluding the
    reversal of the airtime credit, the service margin for the third quarter
    was 65%.  Ratable product margin was 40% for the third quarter of 2009
    compared to 62% for the third quarter of 2008.  Excluding the amortization
    of the deferred performance obligation, ratable product margin in the third
    quarter of 2008 would have been 42%.
    
--  Total operating expenses totaled $677,000 for the three months ended
    September 30, 2009 compared to $788,000 for the three months ended
    September 30, 2008.  The 14% decrease from the comparable period in the
    prior year is primarily due to reduced bad debt expense and reduced
    headcount and the associated overhead costs.
    
--  Interest expense totaled $0.3 million for the three months ended
    September 30, 2009 and the three months ended September 30, 2008.  The
    current period interest expense primarily consists of the accretion of the
    Series B Notes of $212,000.
    
--  Excluding the amortization of the deferred performance obligation and
    the reversal of the AT&T accrued airtime credit, adjusted EBITDA for the
    third quarter of 2008 would have been negative $31,000 compared to positive
    $64,000 for the third quarter of 2009.
    

Other Highlights for 2009 include:

In the first nine months of 2009, we issued 6,402,645,880 shares of common stock as partial principal payments on the Series A Notes in satisfaction of $937,110 of obligations due under the notes. Additionally, during the same period, we issued 3,255,173,554 shares of common stock as partial payments on the Series B Notes in satisfaction of $429,404 of obligations due under the notes. On September 8, 2009, a holder of our Series B Notes agreed to convert $1,688,032 of obligations due under the notes into 18,756,355,556 shares of our common stock. This conversion represents an issuance price of $.00009 per share. On November 6, 2009, we completed this transaction and issued 18,756,355,556 common shares in full satisfaction of $1,688,032 of obligations under the notes. We expect to issue additional shares of our common stock in payment of amounts due under the notes during the remainder of 2009 and thereafter. In general, the shares issued are available for immediate resale by the holders in accordance with Rule 144 under the Securities Act of 1933, as amended.

About Remote Dynamics, Inc.

Remote Dynamics, Inc. markets, sells and supports a state-of-the-art asset tracking and fleet management solution that contributes to higher customer revenues, enhanced operator efficiency and improved cost control. Combining the technologies of the global positioning system (GPS) and wireless technologies, the company's solution improves our customers' operating efficiencies through real-time status information, exception-based reporting, and historical analysis. The company is based in Plano, Texas. More information about Remote Dynamics is available online at http://www.remotedynamics.com.

Contact Information

  • Contact:
    Gary Hallgren
    214-440-5210