SOURCE: NavStar Technologies, Inc.

NavStar Technologies, Inc.

June 09, 2009 10:00 ET

NavStar Technologies, Inc. Announces Intent to Acquire Annuity Revenue Generating Software Company

ANAHEIM, CA--(Marketwire - June 9, 2009) - NavStar Technologies, Inc. (PINKSHEETS: NVSR), a multinational firm focused on developing and commercializing asset tracking and monitoring devices for vehicles and high value cargo with specific geographic focus in Latin America, today announced its intent to acquire an annuity-based services company to complement its product offering.

N. Douglas Pritt, Chairman and CEO, confirmed that negotiations are underway with three privately held firms; it is expected that a Letter of Intent will be announced NLT than June 30, 2009 with the commensurate acquisition to be completed by August 1, 2009.

NavStar also announced guidance regarding its expected financial performance over the next 5 years. Under pinning the successful achievement of these financial objectives is the company's procurement of up to $1.0 million of funding in the 3rd quarter of this year. The summary financial income statement follows:

Year ($M)       2009  2010  2011  2012  2013
                ----  ----  ----  ----  ----
Revenue          2.0  12.4  16.3  20.8  25.9
COG              1.1   7.4  10.1  13.2  16.9
Gross Profit      .9   5.0   6.2   7.6   9.0
SG&A             1.3   2.7   3.5   4.6   5.6
EBITDA           (.4)  2.3   2.7   3.0   3.4

Based on the additional service revenue which will accrete to this base financial model, this acquisition should allow NavStar to galvanize additive revenue which will reoccur year to year based on the deployment of the asset tracking devices through customers in Latin America. Specifically, several Latin American customers/governments have already indicated under binding Letters of Intent a desire to acquire the company's products.

The acquisition highlighted today will provide NavStar with software services revenue that is being renewed by customers annually for 3 to 5 years. The annuitized revenue provided by these software services provides a significant boost to revenue and profitability. The incremental value created through the completion of this acquisition is shown below in the following recast financial projections:

Year ($M)       2009  2010  2011  2012  2013
                ----  ----  ----  ----  ----
Revenue          2.2  17.2  26.4  35.3  46.9
COG              1.2   9.3  15.1  20.5  27.1
Gross Profit     1.0   7.9  11.3  14.8  19.8
SG&A             1.5   3.7   5.3   6.9   8.6
EBITDA           (.5)  4.2   6.0   7.9  11.3

For further information about Navstar Technologies, Inc. visit the company's website at www.navstarinc.com.

FORWARD-LOOKING STATEMENT

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, that involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this press release.

About NavStar Technologies, Inc.

NavStar is focused on the creation of products and services that provide tracking and monitoring of vehicles and high value cargo, equipment, and other valuable and personal assets.

Contact Information

  • CONTACT:
    NavStar Technologies, Inc.
    Patrick Bannister
    714-502-6900
    Email Contact