Strategic Agreement for Pointer in Brazil: Pointer Announces Agreement for Installment of Advanced Solutions for Fleet Management in Brazil for Over $3.2M
ROSH HAAYIN, Israel, October 4, 2011 /PRNewswire/ –
Pointer Telocation Ltd. (Nasdaq CM: PNTR, TASE: PNTR) – a leading
supplier of technology and service for managing mobile resources and
providing roadside services to the vehicle industry and to the insurance
market, reports entering into an agreement for the supply and installation
of advanced solutions to manage a fleet of vehicles in Brazil in a
tri-annual agreement for over $3.2 million. This is the largest transaction
that Pointer signed in Brazil since commencing sales in Brazil a year ago.
Pointer entered into an agreement with a leading company in Brazil to
install its solutions in a fleet of over 2,000 motor vehicles. The order
will result in a significant increase in the number of the Company’s
subscribers in Brazil.
The transaction is in respect of motorcycles, cars and heavy trucks and
will enable Pointer’s customers to benefit from achieving efficiency and
savings when managing mobile resources with a fairly low investment, and
utilizing the global growth and change that the Telematics field is
Pointer’s solutions will enable the Brazilian company to effectively
track the assets, monitor the vehicle’s engine, manage fuel consumption in
the Brazilian company’s motor vehicles, unauthorized use of the vehicle,
improve productivity and reduce accidents. The systems to be installed in
Brazil also include a package of solutions to manage a fleet of vehicles
with advanced control and command technologies, including the service of
stolen vehicle recovery.
These solutions were developed and manufactured in Cellocator, the
technology division of Pointer which is considered to be the leading
provider of technologies for Mobile Resources Management (MRM) for vehicle
fleets and cargo. Cellocator’s product platforms enable Pointer to provide
its customers, inter alia, with vehicle diagnostic services, monitoring
drivers’ behavior and payment according to driving traits based on cellular
David Mahlab, President and CEO of Pointer said: “We are very satisfied
that a Brazilian customer of such a significant sizechose our solutions.
This important agreement is part of our consistent growth strategy for the
Company’s operations abroad, while increasing revenues and profitability of
the products and services that the Company supplies.We proved our solution
quality vs. numerous competitors. The combination of our technology division
Cellocator together with the quality of our local subsidiary enabled us to
be chosen as the preferred vendor. The present transaction in Brazil is
proof of the Company’s ability to sign agreements with top-rate customers in
the markets in which we operate and to offer them a unique technology and a
complete solution. I believe that the increased international exposure and
recognition for the Company’s products will continue and even increase the
growth trends and the number of customers abroad.
After consistent growth and record revenues in the second quarter of
2011, I estimate that in the coming year we will be able to increase the
Company’s revenues from operations abroad, which today comprise
approximately 28% of the Company’s total revenues.”
Pointer reported record revenues in the first six months of 2011 of an
aggregate of $43 million, 23% growth compared to the equivalent period in
2010. In 2010, the Company’s revenues increased by 13% and aggregated 73.9
Non-GAAP net income for the first six months of 2011 was an aggregate of
Pointer’s adjusted EBITDA for the first six months of 2011 was an
aggregate of $5.6 million.
The growth in revenues is expressed also in improved profitability.
About Pointer Telocation
Pointer is a leading supplier of MRM (Mobile Resource Management) for
the motor vehicle industry. The combination of technological supremacy and
innovation enables Pointer to develop and manufacture unique communications
solutions to meet customers’ needs. The Company provides a range of services
to insurance companies and vehicle owners, including road services, car
towing, locating stolen cars, managing vehicle fleets, safety products and
other value added services.
Pointer has grown in recent years also through successful implementation
of acquisitions in Israel and in Argentina and establishing business
branches and partnerships in Mexico, Romania and Brazil. In April 2004, the
Company acquired the assets and operations of Shagrir Ltd., and in 2007 the
Company acquired the assets and operations of Cellocator. Pointer has
offices in Israel, Argentina, Mexico, Brazil and Romania.
Pointer has a growing list of customers and products installed in more
than 45 countries. Among the Company customers are insurance companies that
offer or require towing services and locating services of vehicles as part
of the insurance policies they sell.
Pointer shares are traded on NASDAQ (PNTR) and the Tel Aviv Stock
The Company’s top management and the development center are located in
the Afek Industrial Park of RoshHa’ayin.
This press release contains historical information and forward-looking
statements within the meaning of The Private Securities Litigation Reform
Act of 1995 with respect to the business, financial condition and results of
operations of the Company. The words “believe,” “expect,” “anticipate,”
“intend,” “seems,” “plan,” “aim,” “should” and similar expressions are
intended to identify forward-looking statements. Such statements reflect the
current views, assumptions and expectations of the Company with respect to
future events and are subject to risks and uncertainties. Many factors could
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
that may be expressed or implied by such forward-looking statements,
including, among others, changes in the markets in which the Company
operates and in general economic and business conditions, loss or gain of
key customers and unpredictable sales cycles, competitive pressures, market
acceptance of new products, inability to meet efficiency and cost reduction
objectives, changes in business strategy and various other factors, both
referenced and not referenced in this press release. Various risks and
uncertainties may affect the Company and its results of operations, as
described in reports filed by the Company with the Securities and Exchange
Commission from time to time. The Company does not assume any obligation to
update these forward-looking statements.
Contact: Zvi Fried, V.P. and Chief Financial Officer Tel.; +972-3-572-3111 E-mail: firstname.lastname@example.org Chen Livne, Gelbart-Kahana Investor Relations Tel: +972-3-607-4717 E-mail:email@example.com
SOURCE Pointer Telocation Ltd