Partnership with Cell-Loc; concentration on EMS business
AimGlobal EMS Division, Aimtronics, to manufacture mobile location products for Cell-Loc Inc.
AMEX and TSE: AGT
AimGlobal Technologies, EMS Division, Aimtronics Corporation enters
strategic electronic manufacturing partnership agreement with Cell-Loc
Inc. Aimtronics to provide Cell-Loc $5 million of cellular location
products during the current quarter (Q4) with production set to hit $50
million over the following 36 months.
- Evolving strategic EMS customer partnerships, plus consistent rising
demand for advanced-electronics, and growing opportunities drive
current order-backlog at January 2000, to a record $110 million.
- On-going proliferation of electronics expanding EMS Industry 3 to 4
times faster than US and global GDP, AimGlobal focusing on core
electronics business - divesting non-core assets. Company accepts cash
offer for software subsidiary 'Catouzer'.
TORONTO, Jan. 18 /CNW/ - AimGlobal Technologies (TSE, AMEX: AGT) today
announced that Cell-Loc Inc. (CDNX: CLQ) and Aimtronics Corporation, the EMS
division of AimGlobal Technologies, have entered into a strategic partnership
where Aimtronics will manufacture the Cell-Loc cellular location system,
'Cellocate(TM)' at Aimtronics' Ogdensburg, New York facility.
The Company confirmed that providing the capacity and technology to meet
the production needs of Cell-Loc now and in the future is a key component to
establishing their relationship. Management confirmed this is yet another
critical element within Aimtronics' expanding relationship and customer base
and its unfolding business plan to play a strategic EMS role with major RF and
Wireless OEM's.
Cell-Loc is the developer of Cellocate(TM), a family of wireless
telecommunications location products that enables wireless location services
and is a leader in this emerging $12 billion Industry. Cell-Loc develops,
markets and supports its patented wireless location technology to wireless
carriers around the world to meet the requirements of the FCC Enhanced 911
(E911) Phase II mandate for locating wireless emergency calls.
Emergency 911 call centers in the United States receive a daily average
of over 100,000 emergency calls originating from wireless phones. The lack of
accurate location data from wireless phones has long been a problem for
emergency responders attempting to locate traumatized victims and witnesses of
emergency events. The FCC mandate requires wireless carriers to provide
Automatic Location Identification (ALI) beginning in 2001 and phasing in over
several years. Wireless callers must be located with an accuracy of 100 meters
for carriers choosing network based technologies or within 50 meters for
carriers choosing handset based technologies. On October 27, 1999, President
Clinton signed legislation establishing the 911 emergency number throughout
the United States for both landline and wireless telephone use.
Cell-Loc's technology will enable the worldwide offering of enhanced
value-added location based services, such as pet location, child location,
fleet tracking and asset tracking. These services are considered key
components of the rapidly expanding market for mobile data and wireless
telephone use.
Michael Marti, President of Aimtronics stated, "The expenditure by cell
phone infrastructure providers to comply with the FCC regulations is
anticipated to approach US $600 million over the next 3 years. Cell-Loc's
selection of Aimtronics as their strategic EMS partner highlights the
capability of Aimtronics to add value to and participate in a burgeoning new
market for wireless communications."
$110 million order-backlog
The Company further confirmed their Electronic Manufacturing Solutions
business continues to gain solid industry-ground and achieve increasing
growth. Strategic customer partnerships with an increasing number of leading
technical corporations has increased order-backlog by a notable 101% over the
same period just one year ago. Mr. Marti advised, "Aimtronics is experiencing
the fulfillment of our business development plan through many strategic
alliances with terrific companies in the wireless, medical, aerospace and
other leading technical industries." Marti continued, "Our plan is to evolve
into such strategic alliances that transcend the bounds of traditional
customer relationships with all of our customers. Our order-backlog has hit
the $110 million mark, up from $51 million for the same time last year, and
revenues continue to increase through applying this strategy." Marti
concluded, "With only about 24% of electronics manufacturing being outsourced
today, and the market expanding by 25% per year to 44.8 billion in 2001, we
have abundant opportunities to increase sales revenues. Currently, with a
book- to-bill ratio of 2:1, Aimtronics is booking sales at a rate of twice
that of our present manufacturing flow."
The company confirmed that 'order-backlog' represents firm orders and
product commitments received that are scheduled to be manufactured, delivered
and billed within the following 12 months.
AimGlobal to focus on core electronics manufacturing business
AimGlobal Technologies today confirmed they will be divesting non-core
assets of the Company in order to focus more thoroughly on the core Electro-
technologies and Electronic Manufacturing Solutions (EMS) business, and has
accepted a cash offer for their software subsidiary, 'Catouzer'.
Mr. Steve deJaray, President and CEO of AimGlobal Technologies stated,
"The EMS industry has grown 500% in nine years and is clearly expected to
enjoy a similar level of continued success for several years to come. A recent
study predicts that the market will continue to grow in excess of 25% annually
over the next four years. Billions in revenue still wait to be outsourced, and
on a global level. It is on this premise that AimGlobal expects its future to
provide a very considerable upside in revenues and profits."
Mr. deJaray continued, "The EMS industry is clearly our core competency.
We have become one of the four largest EMS manufacturers in the country and we
are growing quickly. Appreciably, the sales and marketing of business and
small office software is not core to our EMS business. It requires a
substantial investment of money, and more importantly, significant time and
attention to expand the sales and marketing expertise, to complete software
development and to implement corporate infrastructure and advancement. We
believe we have accepted a good offer. While our software products served a
clear and beneficial purpose to the company, as they do for customers, it was
not expected that Catouzer would have contributed to our earnings, nor
constituted a significant proportion of total sales in the near future."
The company confirmed that the net results from the sale of Catouzer
will realize a gain on its disposition.
About Aimtronics Corporation
Aimtronics, a wholly owned subsidiary of AimGlobal Technologies (TSE,
AMEX: AGT) offers a complete range of Electronics Manufacturing Solutions and
is a leading technical provider of services in the Microelectronics industry.
Aimtronics' supply chain management solutions offer design assistance -
reducing time-to-market metrics, time-to-volume metrics, full product testing,
packaging, warranty service, and end-of-life support. Aimtronics'
Microelectronics Technology Centre provides proprietary thick and thin film
hybrid design and assembly including Chip-on-Board, Multi-Chip Module, and
Flip-Chip technologies.
Through five facilities located across the country Aimtronics' serves
the high technology markets through out North America.
About AimGlobal Technologies Company
Founded 14 years ago, and through two operating subsidiaries, AIMGlobal
Technologies serves the Medical, Aerospace, Communications, Industrial,
Military, Power Utility, Emergency Services and Consumer markets. With
operations in Texas, New York State, Ontario and British Columbia, AIMGlobal
Technologies is a recognized technical innovator and a leading manufacturer of
proprietary microelectronic solutions and hazardous air and gas monitoring
products for life, health and safety applications.
Safe Harbor Statement
Certain information in this press release contains "forward looking
statements" within the meaning of the Securities Exchange Act of 1934,
including those concerning the Company's future results and strategy. Actual
results could differ from those in the forward looking statements due to a
number of uncertainties, including, but not limited to, the demand for the
Company's products and services; the size, timing and recognition of revenue
from significant orders; increased competition, changes in Company strategy;
product life cycles; the impact of rapid technological advances, evolving
industry standards, changes in customer requirements, and fluctuations in
foreign exchange rates.
The Company's expense levels are based, in part, on its expectations as
to future revenue and a significant portion of the Company's expenses do not
vary with revenue. As a result, if revenue is below expectations, results of
operations are likely to be materially adversely effected.
For further information: Visit Aimtronics at www.aimtronics.com; Visit
Cell-Loc at www.cell-loc.com; Company Contact: AimGlobal Technologies Company,
Inc., Megan Simms-Beatty, (604) 205-7609; Cell-Loc Inc., Cassy Weber,
Director, Corporate Communications, (403) 569-5700, Toll Free: (877) 569-5700 |
