Cell-Loc Location Technologies Inc.
TSX VENTURE : LTI

Cell-Loc Location Technologies Inc.

April 16, 2008 19:50 ET

Cell-Loc Location Technologies Reports Major Revenue Growth

CALGARY, ALBERTA--(Marketwire - April 16, 2008) - Cell-Loc Location Technologies Inc. (TSX VENTURE:LTI), reports annual revenue of $3,303,000 in its Brazilian subsidiary, representing growth of 229% from the prior year. During the year, the Company installed 33,785 Beacons, an increase of 314% from the prior year's 10,762. As of December 31, 2007, there were 37,188 Beacons active in the network. The following is a summary of the beacon revenue:



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(in thousands of Canadian dollars) 2007 2006
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License revenue $ 0 $ 500
Service revenue 3,304 1,007
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Total revenue 3,304 1,507
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(#Beacons)
Installed 33,785 10,282
Churn (6,879) (490)
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New units billed 26,916 10,282
Units renewed 10,272 0
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Units in service 37,188 10,282
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During the year ended December 31, 2007 the Company incurred a net loss of $8,105,000 (six cents per share) compared to a net loss of $5,632,000 (six cents per share) for the year ended December 31, 2006. The following is a summary of operations:



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(in thousands of Canadian dollars) 2007 2006
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Revenue $3,304 $1,507

Cost of sales 1,950 600
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Gross margin 1,354 907
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Operating expenses
General and administration 3,442 3,372
Operations 3,613 1,486
Marketing and business development 210 86
Depreciation, amortization and write-down of
assets 2,243 1,835
Foreign exchange, net interest and other (49) (240)
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Net loss $ (8,105) $ (5,632)
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Loss per share ($ per share) (diluted and non-
diluted) $(0.06) $(0.06)
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The complete financial statements along with management's discussion and analysis can be found on the Company's website (www.cell-loc.com) and on SEDAR (www.sedar.com).

Outlook

As the Company progresses into the second full year of commercial operations during 2008 in Sao Paulo, Brazil it will continue to benefit from the experience of operating its network based technology in what it believes to be a world class show-case. The Company has demonstrated its ability to effectively and efficiently compete with other well established location based technology service providers in this market.

One of Cell-Loc's near term objectives will be to continue expanding its market share of the stolen vehicle recovery vertical in both the insured and uninsured markets. The recent announcement of an agreement with SASCAR is intended to actively pursue both markets; however, as a Company, the strategy to contract directly with insurance companies with large fleets in the coverage area will be its primary objective. Cell-Loc remains optimistic about its ability to enter into agreements offering telemetry services during 2008. The Company believes that this is a significant market where its low cost data solution will have competitive advantage.

Concurrently, the Company will work aggressively to lower the cost structure of its services by reducing its Beacon manufacturing and component costs, as well as other network related components. Continuing to work on lowering its cost structure is key to Cell-Loc's expansion opportunities in Brazil, as well as globally. To this end, the Company anticipates that it will complete various agreements during 2008 that will substantially lower the cost of our hardware and services.

During 2008, the Company anticipates consolidation in the LBS market space. It is expected that real-time location services, as opposed to tracking technologies, will continue to be recognized as the desired product. Tracking technologies will continue to lose market share as the demand for location-on-demand along with specific information or data will increase along current trends. The Company remains confident that its low cost location solution will be recognized as a leader in this evolving market.

About Cell-Loc Location Technologies Inc.

Cell-Loc Location Technologies Inc. (www.cell-loc.com) is the developer of a family of network-based wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology in North and South America and Asia, with a view to expanding globally. Cell-Loc is listed on the TSX Venture Exchange under the trading symbol: "LTI."

Forward Looking Statements: This news release contains certain information that may constitute forward-looking statements under applicable securities laws. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Actual results achieved may vary from the results anticipated or implied herein and variations may be material. There is no representation by the Company that actual results achieved will be the same in whole or in part as those implied in any forward looking statements.

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The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.

Contact Information

  • Cell-Loc Location Technologies Inc.
    Sheldon Reid
    President & CEO
    (403) 569-5700
    or
    Cell-Loc Location Technologies Inc.
    Dave Guebert
    Vice President Finance & CFO
    (403) 569-5700
    Website: www.cell-loc.com