Perth-based wireless telecommunications company, Wavenet International Ltd, has started 2006 with a $3 million re-order of its vehicular modems.
Perth-based wireless telecommunications company, Wavenet International Ltd, has started 2006 with a $3 million re-order of its vehicular modems.
The deal, with US company GeoLogic Solutions Inc, for Wavenet’s Wombat vehicle modems brings the company’s forecast revenue for 2006 to approximately $11 million, double that of the previous corresponding period.
Wavenet chief executive Steve Metlitzky said deliveries for the order of Wombat modems were due for completion within the current financial year.
“The re-order follows positive feedback from GeoLogic’s customers and a strong take-up of the initial batch of units purchased in 2005,” he said.
Mr Metlitzky said the new order highlighted the demand for Wombat vehicle modems in the US.
“GeoLogic has been an excellent customer for Wavenet and we are very excited about how well the Wombat has performed in the field,” he said. “This order is further evidence of Wavenet’s growing position in the US vehicle tracking market.
“Wavenet has a strong and growing cash position and is now poised to deliver profit in forecast year 2006.
“In parallel to our existing business, the company is aggressively targeting acquisition opportunities to fuel growth and increase value for shareholders.”
GeoLogic provides the commercial trucking industry with wireless asset management packages aimed at reducing operational costs and improving efficiency.
Meanwhile, Wavenet chairman Edward Stroud announced the company had decided against taking the next step in acquiring a local wireless company.
The decision follows advice foreshadowed at its recent annual general meeting that Wavenet planned to aggressively target strategic investments and potential acquisitions this year.
Wavenet did, however, acquire a discounted receivable in the company, generating a profit of $380,000 profit.
“While the board elected not to take the next step in this instance, the processes used to review the opportunity have proven sound and in the end we decided to take a profit and increase our funds in order to pursue other opportunities,” Mr Stroud said.
“We are forecasting strong sales for this financial year, fuelled by existing Boomer and Wombat products. Our plans are to add to this growth by looking at opportunities that will enhance shareholder value and be received well by the market.”
The company’s share price has been trading between 17 cents and 18 cents since rising three cents following the announcement of the re-order.
In November, Wavenet agreed to supply San Diego-based Networkcar Inc with 10,000 Mobitex modems worth $1.25 million. The order represents the first batch of an anticipated requirement to supply 30,000 wireless modems worth $3.75 million over an 18-month period, with initial deliveries for this order targeted to commence this month.
In October last year, Wavenet agreed to a deal to initially supply 7,200 units to Israel-based company Lipman Electronic Engineering Ltd.
Under that agreement, worth a potential $2.5 million in annual revenue, Wavenet will supply Lipman with recurrent monthly orders to exceed 20,000 modems a year until the end of 2006.
