[September 12, 2009] WebTech Wireless and Grey Island International Update on Integration Progress Tweet Sep 11, 2009 (Close-Up Media via COMTEX) -- WebTech Wireless and Grey Island Systems International announced that they have made significant and early progress identifying opportunities for both companies within each others' sales pipelines, as well as additional cost savings and efficiencies to be realized post integration. As first announced, the groups noted, the integrated company is forecasting: - Pro-forma calendar 2009 run rate revenue of $50 million - Sustainable 2010 organic growth based on existing contract backlogs - Combined recurring revenue approaching $6 million per quarter in 2010 - Profitability in 2010 - A minimum of $1 million in operational savings - from savings on Grey Island public company costs, R&D synergies, and other back-office costs. Since the first announcement, the integrated company is now predicting to: - Reduce procurement costs and overall cost of sales in 2010 by $1 million or more - improving combined gross profit margins - Achieve an additional $1 million in savings in 2010 by bringing certain outsourced manufacturing in-house - further improving margins - Redeploying development efforts, assigning overlapping resources to new product development and incremental business opportunities. Finally, early analysis of each company's sales pipeline has identified several cross-selling opportunities to further enhance the organic growth opportunities of both companies: - A provisional sale of 160 Grey Island units to a WebTech Wireless customer in Kuwait - Extension of an existing Grey Island solution for a major multinational's Canadian operation to its Middle Eastern unit, leveraging WebTech Wireless' expertise in this market. - Identification of four Middle East opportunities for Grey Island's NextBus solution - Grey Island's snow plow solution will be introduced to WebTech Wireless customers soon after integration is complete - Grey Island will introduce WebTech Wireless' flagship product, the WT5000 Locator, to a number of its municipal customers looking for fleet-wide GPS coverage. Anwar Sukkarie, President & Chief Executive Officer of WebTech Wireless, said, "Though we are still in the early stages of planning our integration, we are thrilled to confirm that the synergies we believed existed, actually do. Grey Island's product mix will knit together beautifully with our own products and product roadmap. As important, is the discovery of tremendous potential among our prospect and existing customer lists. I'm looking forward to travelling with Owen to Europe and the Middle East as soon as this deal is closed to begin consolidating these sales." Owen Moore, President of Grey Island, said, "Now that the uncertainty clouding this transaction has been removed, we're very excited about making good on the opportunities it presents. Our sales force is anxious to start co-selling the WebTech Wireless solution, and our customers are already talking about installing a top-to-bottom solution that can deal with everything from simple 'track & trace' to sophisticated, integrated fleet and asset management systems including regulatory compliance abilities." More Information: www.webtechwireless.com. www.interfleet.com www.nextbus.com. ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]