what do you see? - Telular

Through our October 1st acquisition of SupplyNet
Communications, we are a key player in the use of
M2M wireless solutions to improve supply chain
efficiency. SupplyNet’s TankLink solution mirrors the
functionality of our Telguard security solution but for a
different purpose – optimizing supply chain logistics.
We think it is an ideal M2M vertical market for us to
pursue and we are pleased to have partnered with
SupplyNet, through the acquisition, to enter this market.
Part of our success in any M2M vertical market will
be our ability to incorporate or develop a specialty
terminal product that will interface effectively and
efficiently with the asset that is being monitored. For
example, in our Telguard solution, we make terminals,
also called cellular communicators, which uniquely
interface with security panels. Similarly, in our TankLink
solution, we develop specialty terminals which fit
onto tanks and interface with liquid level sensors. This
expertise has been developed within Telular due to
our longstanding participation in the Fixed Cellular
Terminal (FCT) business. In our Terminals line of
business, we produce and market a line of general
purpose FCTs which allow end users to send voice, fax,
and data over cellular networks. These terminals are
used in developing countries that have inferior wireline
networks and in developed countries for specialty
applications, such as mobile command centers and
remote offices. Recently, we have refreshed our FCT
product line and we expect this line of business to
deliver strong revenue growth and continued
profitability in 2009.
Looking ahead, we plan to enter additional vertical
markets within M2M. Positively, we are well positioned
for expansion, with a very strong balance sheet
comprised of over $20 million in cash and no debt.
Moreover, we established a new $10 million
credit facility during fiscal 2008, should we require
additional capital.
In conclusion, I am very excited about the direction
in which Telular is moving. The Company is focused on
a number of strategic initiatives including broadening
our product lines, developing new partnerships,
expanding internationally, and advancing into new
verticals. We remain fully committed to repurchasing
stock under our share repurchase plan, maintaining a
strong balance sheet and executing on behalf of our
shareholders. We believe the combination of our solid,
core businesses layered with new growth initiatives
will position us for long-term growth and profitability.
I am thankful to our shareholders and employees for
their ongoing support and dedication.
Best Regards,
Joseph A. Beatty
President and Chief Executive Officer