Cell-Loc Location Technologies Inc.
TSX VENTURE : XCT

Cell-Loc Location Technologies Inc.

April 20, 2009 17:10 ET

Cell-Loc Reports 2008 Financial Results

CALGARY, ALBERTA--(Marketwire - April 20, 2009) - Cell-Loc Location Technologies Inc. (TSX VENTURE:XCT) reports annual revenue of $3,894,000 in its Brazilian subsidiary, representing growth of 18% from the prior year. Gross Margin increased by 216% to $2,919,000. Although the Company recorded these top line increases, they fell short of planned growth. Increased competition and slowing economic performance led to slower customer acquisition. As a result, Cell-Loc still recorded an operating loss before depreciation and write-downs of $3,924,000 during the year.

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

The general economic outlook for the global economy is negative and is projected to continue as consumer and business spending has been severely constrained as a result of the financial market crisis worldwide. We expect that the retrenchment in corporate and consumer spending will continue throughout calendar year 2009 and into the first quarter of 2010. This has resulted in delays in finalizing agreements with other potential customers in Brazil. However, demand in the vehicle recovery market remains high and the Company continues to offer a competitive product.

The Company does anticipate significant increases in revenue in Brazil during the upcoming year as a result of Itau's merger with Unibanco and the associated increase in their insurance fleet. In addition, the Company has focused its marketing efforts on the aftermarket and other vehicle markets and expects a strong increase in its success in these markets. The Company's network based service was recently certified with the highest rating which gives it automatic acceptance in most insurance companies. The Company is evaluating its position in the market and is considering various teaming relationships to cover a broader potential customer base.

Although substantial progress has been made on our manufacturing arrangement with Samsung for the joint development of the SoC for the Company's beacon, no definitive date has been set for the release of the commercial product. Both parties continue to work toward the completion of the product and significant progress has been made to date. Negotiations also continue with Samsung on the agreement to jointly develop a receiver system for a small size transceiver module and single-chip solution in conjunction with the contemplated licensing arrangement to be granted to Samsung to deploy and provide LBS throughout Asia.

Internally, cost cutting measures have been taken throughout the Company in order to meet ongoing costs intended to continue programs to increase sales and make advances to the functionality of the technology. As the outlook for financial markets has created a great deal of uncertainty we strive to work through this period with the expectation of growing shareholder value from the promise that our technology holds.

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: "XCT".

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