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www.ultradatasystems.com
ULTR (Nasdaq DD)
Statistics at a Glance -- ULTR Last Updated: June 5, 1998
Price and Volume
(updated June 5, 1998)
52-Week Low $3.25
Recent Price $4.5
52-Week High $8.50
Beta 0.72
Daily Volume (3-month avg) 7,409
Share-Related Items
Market Capitalization $12.8M
Shares Outstanding 3.41M
Float 2.40M
Book Value 3.42
Cash 4 million
Revolving Credit 2 million
No long term debt
For the fiscal year ended 12/31/97, total revenues increased 52% to $13.8 million. Net income increased 62% to $337 thousand. Results benefitted from the shipment of custom unit orders.
David Biernbaum, chief operating officer.
"We're almost frightened by the growth projections," he said. Last year, the company had sales of nearly $ 14 million, a 50 percent increase from 1996's sales of $ 9.1 million.
This year, with a national rollout planned, the company is projecting sales of $ 20 million, including the sale of about 50,000 Travel*Stars.
prototype versions of Travel*Star are being sold for $ 399.99 in the current issue of Trans World Airlines' Sky Mall catalog, and on the company's Web site (www.ultradatasystems.com). Would-be beta testers can also order the device by calling Ultradata's customer service number, (800) 747-2605.
Business Summary
The Pentagon spent more than $ 12 billion to launch the 24 satellites that make up GPS. In 1996, the government lifted restrictions and opened it to commercial use - for free, to everyone worldwide. Since then, several companies have made devices to help drivers find their way around, using the satellite signals.
It's Travel*Star, a computerized device that uses Global Positioning System (GPS) satellite signals to tell drivers where they are, and eventually could tell them where to go.
It's made by Ultradata Systems Inc., based in Olivette, and its makers are hoping the product will launch the company into the big time.
In January, Travel*Star won the Design and Engineering Showcase Award at the 1998 Consumer Electronics Show in Las Vegas. It was one of a handful of innovation awards given to new products at the show, which is primarily for retailers.
Ultradata Systems Reports First Quarter 1998 Results; Announces Radio Shack To Market New GPS Product
ST. LOUIS, May 13 /PRNewswire/ -- Ultradata Systems (Nasdaq: ULTR - news), a marketer of hand-held location and navigational devices for the consumer market, including Travel*Star GPS Driver Information System, a recently introduced Global Positioning Satellite (GPS) product, announced results for the quarter ended March 31, 1998. The company also announced that it will begin test marketing Travel*Star GPS in selected outlets of Radio Shack in August, and that the product will be featured in Radio Shack's consumer electronics catalog.
The company reported first quarter net sales of $1.1 million, compared with net sales of $2.9 million in first quarter 1997. Consumer merchandise sales accounted for 85 percent of revenues, with contract revenues accounting for the balance. Ultradata posted a net loss of $162,900 or $0.05 per share (diluted) for the quarter compared with net income of $25,070 or $0.01 per share (diluted) a year ago. EPS was based on approximately 3.4 million average weighted shares outstanding.
''We had a number of exciting developments in the first quarter, and into April and May,'' said David Biernbaum, chief operating officer. ''We feel the company is gaining momentum on several fronts. Although year-ago revenues were greater due to a large one-time promotional contract, our first quarter 1998 net sales represented a much better balance of revenue from several products and a broader mix of customers. We were also very encouraged by the initial sales of our newest product, the Travel*Star GPS Driver Information System, which even at this early stage accounted for more than 10 percent of our total revenue during the quarter.''
Biernbaum continued: ''We are also very pleased to announce that Radio Shack will test market Travel*Star GPS in 12 selected locations, and also to feature the product in its retail catalog, which is distributed to millions of U.S. households. The catalog has a strong following, and many loyal Radio Shack customers use it as their guide to what's new and interesting in the world of electronics. The catalog has the potential to generate significant sales and raise the visibility of Travel*Star GPS and the GPS automotive navigation category.
''Travel*Star GPS will be available for consumers to order direct from the catalog. In addition, it serves as a guide for customers of the nearly 7,000 Radio Shack locations nationwide. Radio Shack store managers will be made aware of the product through their retailer sponsored materials, and will be able to order the product for their customers.''
Biernbaum noted that by limiting the initial store test to 12 locations, Ultradata will be able to personally train store managers in how to market and demonstrate the product. Radio Shack will support the product with point-of- sale display material, including an in-store demonstration model.
''Because GPS automotive navigation is a new product category, and is relatively unfamiliar to most people, we believe the education of consumers will be an important part of the sales process in the early going,'' noted Biernbaum. ''We will train store personnel and then will work closely with the stores to monitor consumer reactions to everything from product display to final sale. This input, in addition to consumer surveys as part of the warranty registration process, should generate valuable feedback.''
In January 1998, at the Consumer Electronics Show (CES) in Las Vegas, Ultradata unveiled Travel*Star GPS, which provides a driver's current location, directional headings, and turn-by-turn routing information to many tens of thousands of locations throughout the United States. Ultradata received an Innovation Award presented at the 1998 CES.
''We sold our first Travel*Star GPS units in March and doubled the number of units sold in April,'' noted Biernbaum. ''We continue to receive orders in response to our initial marketing efforts, including a prominent ad in an in- flight product catalog. We are very excited by the initial consumer response.''
Biernbaum noted that the company is also participating in the growing popularity in applications of GPS devices through its 18.9 percent equity stake in Talon Research & Development, Ltd., a New Zealand-based manufacturer of GPS receivers and marine electronics, and a 70 percent ownership of a joint U.S. venture with Talon specializing in GPS products and systems. Biernbaum said that first quarter 1998 sales for Talon were up nearly 180 percent compared with the previous year, to US $1.6 million. He noted that Talon's April 1998 sales were more than triple those in April 1997, and backlog was approximately US $3.9 million.
''While Talon is busy filling existing orders, new orders continue to come in, which has led to a consistently strong backlog,'' said Biernbaum. ''We are very encouraged by Talon's sales of marine electronics, including newly designed fish finders and chart plotters, and also GPS receivers such as those used in our Travel*Star GPS product.
''As a significant stakeholder in Talon, we are able to participate in its success and foster its growth. We are providing financing to Talon to give it the cash flow needed to fill orders, however, we anticipate that this investment will result in a net gain this year. Talon has so far exceeded our expectations for revenue growth.
''Additionally, we have the benefit of receiving optimal pricing and availability for its GPS receivers, which is a critical component in Travel*Star GPS.'' Biernbaum noted that Ultradata's equity stake in Talon includes an option to buy 100 percent of the company.
''We have made a great deal of progress in recent months by focusing our attention on our most promising products and market opportunities,'' said Biernbaum. ''Discussions continue with a number of national entities to secure marketing agreements for versions of our Road Whiz hand-held electronic location and navigational devices, and Travel*Star GPS.''
Biernbaum explained that Ultradata continues to spend aggressively on marketing for its products, and to develop new generations of Travel*Star GPS. He said Ultradata anticipates introducing an upgraded version of Travel*Star GPS this summer. At the end of the first quarter, the company continued to maintain cash reserves of more than $4 million, plus a $2 million line of bank credit, and had no long-term debt.
Ultradata develops, manufactures, and markets portable data terminals used for locating destinations and trip planning. The company's recently introduced Travel*Star GPS driver information system, a small terminal plugged into an automobile cigarette lighter, offers the benefits of real-time GPS navigation and location at a fraction of the cost of factory-installed Global Positioning Systems. The Road Whiz, a hand-held electronic navigational and location device priced at around $30, uses the company's proprietary data compression technology to provide directions to thousands of destinations and services along highways and in major metropolitan areas. |
