what do you see? - Telular

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We see wireless communications, s e c u r i t y a n d m o n i to r i n g s o l u t i o n s for markets around the world.
Dear Shareholder The past year has been an important one for Telular. Since I assumed the role of CEO at the beginning of the year, we finalized our exit of the fixed phone business; capitalized on the long-awaited analog to digital conversion in our Telguard business; began repurchasing stock under a newly instituted share repurchase plan; and just after the fiscal year ended, we closed an acquisition in our key growth area – machine-tomachine (M2M) communications. From a financial perspective, we increased our income from continuing operations in 2008 over 2007, despite somewhat lower revenue; and more than doubled our cash position. This is a tribute to the team’s careful management of operating costs and dedicated focus on profitability. We started 2008 with M2M as the new strategic focus for Telular and we based this strategy on our key strengths as a company: • Designing specialty electronics for transmitting voice and data over cellular • The provision of cellular data services via resale arrangements • Operating a real-time, message and event processing system We have honed these strengths to a great extent through the operation of our Telguard line of business for the past ten years. It is our view that our success in one of the oldest and largest M2M vertical markets – security monitoring – indicates that we can achieve even further success as more and more vertical markets, outside of security, become economically addressable as M2M applications. In our Telguard business, we had sold a substantial number of new units in advance of the analog sunset date in February 2008. Afterwards, we experienced a reduction in demand; most likely due to a combination of factors, including conclusion of the analog sunset peak demand, weakening of the housing market, and increased competition. Nevertheless, we ended fiscal 2008 with a record subscriber base of 427,000, an increase of 26% over fiscal 2007. Looking forward, we continue to enhance our Telguard offering and expect to grow its subscriber base and recurring income stream for years to come. More importantly, perhaps, is the fact that we can replicate the business model for Telguard into other M2M applications, such as tank-level monitoring. Joseph A. Beatty
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what do you see? - Telular

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