ATLANTA, Oct. 10 /PRNewswire-FirstCall/ — Numerex Corp. (NASDAQ: NMRX),
a leading provider of full-service, highly secure machine-to-machine
(M2M) network services and solutions, today announced that it has
acquired Ublip Inc., a fast growing privately-held machine-to-machine
(M2M) software and services company headquartered in Dallas, Texas.
“Our mission to provide a full range of comprehensive M2M services
to the industry is significantly advanced with the acquisition of
Ublip. We gain from an infusion of technology that includes middleware
designed to simplify application development and deployment, and
‘virtual’ hosting architecture,” stated Stratton Nicolaides, CEO and
chairperson of Numerex. “In addition, we have a small group of
dedicated M2M industry experts who are joining our Numerex family, led
by Dr. Jeffrey O. Smith, a current member of our Board of Directors. I
am very pleased to announce that Jeff will join our executive
management team as Chief Technology Officer. Dr. Smith will resign from
the Numerex Board of Directors, effective immediately, and will head
the Company’s Science and Technology Committee.”
The Ublip infrastructure and software enable the rapid creation of
Web-based M2M applications, and when coupled with existing Numerex
network technology and infrastructure, provide a resilient and reliable
hosting environment for M2M solutions. Numerex’s strategy of
simplifying the deployment process is an important key to sustainable
growth in the industry. Typically, application developers must identify
hardware (radio modules, servers), understand and select wireless
networks, build communications software, and the front-end web
application. Ublip ‘Foundation’ technology and software simplifies and
‘jumpstarts’ the application development process, and has the capacity
to support several different devices, wireless networks, and protocols.
Dr. Jeffrey O. Smith, a Founder and the President of Ublip, added:
“I am excited to join a remarkably skilled and experienced team of
dedicated professionals, in particular a team of engineers and other
technology experts who have worked with Numerex for many years. A
Numerex/Ublip combination makes perfect sense since it marries
Numerex’s ubiquitous network platforms and gateway technology with
Ublip’s ability to help customers optimize the way they work through
the use of a flexible and efficient application environment. It
amplifies our joint market reach. I am confident that this new step
will be successful for all parties involved since we already have
common customers that are benefiting from our combined solutions.”
Dr. Smith will head the Company’s extensive information technology
and development initiatives. He will also significantly participate in
the development of Numerex long-term strategic planning. Ublip systems,
operations, and its ‘virtual’ hosting architecture will be fully
integrated into existing Numerex infrastructure in order to create a
seamless M2M service platform capable of serving multiple vertical
markets.
With Ublip, Numerex and third party developers will be able to build
applications that are device-independent and can function across
diverse operating systems. The integration of the Ublip foundation,
i.e., a scalable hosting environment that brings an application to
life, within the Numerex portfolio of services will bolster and support
innovation in growing M2M markets. Both Ublip and Numerex customers are
expected to reap the benefit from access to wider and deeper
capabilities.
Ublip was merged into a Numerex wholly-owned subsidiary and will be
fully integrated into the Company’s operations. The aggregate
consideration for the transaction includes approximately 400,000 shares
of restricted Numerex Class A Common Stock and approximately $300,000
in cash.
Mr. Nicolaides continued, “Facing these challenging economic
conditions, this is no time to sit still. Our M2M products and services
offer security, enhance productivity, and create efficiencies for
customers in a variety of markets. Even though we don’t anticipate a
material financial contribution from Ublip operations in the short-run,
we do expect to hit the ground running with our newest M2M products and
services. We believe this will immediately and significantly improve
our M2M business development prospects and create new and distinct
competitive advantages.”
While the Company has not yet finalized its third quarter results,
revenues are expected to exceed $18.7 million that compares to revenues
of $17.4 million in the second quarter of 2008 and $16.0 million in the
third quarter of 2007; and represents relative growth rates of 7.5% and
16.9%, respectively. In addition, Numerex will report over 690,000
active network connections at the end of September 2008, compared to
617,000 as of June 30, 2008 and 386,000 at the end of September 2007,
which represents relative growth rates of 11.8% and 78.8%,
respectively. Also, the Company’s cash position strengthened during the
quarter with an ending cash balance of $8.4 million compared to $6.2
million at the end of the second quarter. In addition, the Company
reiterates its expectations of achieving full-year profitability.
About Numerex
Numerex Corp. (NASDAQ: NMRX)
provides the broadest choice of secure machine-to-machine (M2M) network
services and solutions. Numerex delivers a depth of expertise and
excellence through its M2M service platforms — Networx, Techworx, and
Flexworx — that leading companies choose to power their M2M solutions.
Numerex is the first M2M Company in North America to carry ISO 27001
certification — ISO’s highest information security benchmark that
ensures data confidentiality, integrity and availability. The Company
offers its M2M products and services through a variety of brands
including Uplink and Orbit One. Numerex is headquartered in Atlanta,
Georgia. For additional information, visit http://www.numerex.com. For additional information regarding Ublip, visit http://www.ublip.com
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