DDS Wireless Announces the Signing of $1.9 Million of New Contracts and Provides Guidance Update on 2012 Revenue
RICHMOND, BRITISH COLUMBIA, Sep 7, 2012 (Marketwire via COMTEX) --
DDS Wireless International Inc. (TSX:DD) ("DDS" or "the Company") today announced recent contract signings of $1.9 million and provided an update to the revenue guidance the Company issued earlier in the year.
StrataGen Systems, Inc., the Company's Transit business unit was awarded over $0.7 million in new upgrade and mobile data terminal projects. These deals are a continuation of StrataGen's successful efforts to upgrade and expand its clients with the latest release of ADEPT(TM) 6.1 including additional modules that add functionality such as web access, and expanding the footprint for the Vector 9000(TM) mobile data terminals.
Digital Dispatch, the Company's Taxi business unit announced $1.2 million of new contracts predominantly with Taxis G7 of France, one of the Company's largest customers that has been using DDS' technology to build its business for over 10 years.
"Our 2012 backlog has increased by over $2 million in the past three weeks and I am pleased with the contracts closed in our Transit business unit. Although we have experienced consistent deal flow in the past month, we are finding that some contracts are getting pushed out into 2013," says Vari Ghai, CEO of DDS.
In light of the expected timing of contracts and the continued strength of the Canadian dollar in relation to both the US dollar and the Euro, DDS is revising its financial guidance on revenue for the fiscal year 2012. Earlier this year, DDS had announced it anticipated revenues to be at least that of fiscal 2011. The Company now expects revenues to be lower than that of fiscal 2011.
"In creating our 2012 forecasts we had made certain exchange rate assumptions. During the course of the year the rate of the US dollar and the Euro, particularly in relation to the Canadian dollar, has deteriorated against those assumptions. Given that approximately 90% of our revenues are in other than Canadian dollars, such shifts have an impact on our revenue. Additionally, as the year progresses, long term SaaS contract signings have less impact on 2012 revenue. The combination of these factors has caused our outlook for the second half of the year to be lowered from our forecasts. We expect our typical seasonal strength in the fourth quarter but not enough to move us up to last year's revenue. The fundamental outlook of our Company remains strong and management will remain attuned to managing costs. We expect to continue to declare dividends quarterly; however, of course, the declaration of any future dividend is determined by the Board of Directors of the Company immediately prior to each declaration," stated Caroline Dunn, CFO of DDS.
About DDS Wireless International Inc.
DDS Wireless International Inc. is a global leader in providing application software for multiple vertical markets within the transportation industry. The Company specializes in transit routing and scheduling, real-time dispatching, vehicle location and tracking software applications, communications infrastructure as well as in-vehicle wireless devices. DDS Wireless operates three businesses dedicated for Taxi, Transit and New Markets such as Limousines and Work Trucks. The Company supports its customers worldwide through its offices in Canada, Finland, Singapore, Sweden, U.K. and U.S.A.
This press release may contain forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, operations, anticipated financial performance, business prospects and strategies, statements about future market conditions, supply and demand conditions, revenues, gross margins, operating expenses, profits, the declaration of dividends and other expectations, intentions, and plans contained in this press release that are not historical facts. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, business risks, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Given these risks and uncertainties DDS Wireless cannot guarantee that any forward looking statements will be realized.
SOURCE: DDS Wireless International Inc.
DDS Wireless International Inc.
(604) 241 1441
DDS Wireless International Inc.
Caroline J. Dunn
Chief Financial Officer
(604) 214 7206
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