We have been accumulating this for a while, and they just released a solid PR.
2009-09-02 09:00 ET – News Release
ANAHEIM, CA — (MARKET WIRE) — 09/02/09
NavStar Technologies, Inc. (PINKSHEETS: NVSR), a multinational firm focused on developing and commercializing asset tracking and monitoring devices for vehicles and high value cargo, today announced a strategic relationship with Vortex Solution, a Canadian company with offices in Montreal and New York City, to provide the annuity-based services that NavStar has been seeking to complement its product offering.
N. Douglas Pritt, Chairman and CEO, confirmed that an LOI has been signed and that a final agreement will be completed in the next two weeks. The agreement includes a combination of stock, cash and a per user royalty payment.
“We decided to focus our attention on Vortex about three weeks ago when it became apparent that their monitoring/tracking software had been improve significantly over the past 12 months. They have 5 or 6 software engineers that have successfully integrated our hardware with their software and have sold several thousand NavStar units in Montreal under the brand name AVL Track,” said N. Douglas Pritt, NavStar’s Chairman and CEO. “Their experience with our product will easily accelerate the software/hardware integration by 6 months and gives us a proven software platform which is already supporting thousands of users.”
“We are immensely pleased of NavStar’s decision to establish a partnership with our firm for their software platform. We have already had great success with their hardware working on our platform in both the US and Canada. With 65 software engineers in place we can be very responsive to customer needs and the request for new services. Moreover, the markets on which NavStar is currently operating represent new horizons for our company,” said Guy Michon, Vice President Vortex Solution.
The relationship with Vortex will provide NavStar with software services revenue that is being renewed by customers annually for 3 to 5 years. The annuitized revenue provided by these software services provides a significant boost to revenue and profitability. The value created through the addition of software revenue is reflected in the following financial projections:
Year ($M) 2009 2010 2011 2012 2013
—- —- —- —- —-
Revenue 2.2 17.2 26.4 35.3 46.9
COG 1.2 9.3 15.1 20.5 27.1
Gross Profit 1.0 7.9 11.3 14.8 19.8
SG&A 1.5 3.7 5.3 6.9 8.6
EBITDA (.5) 4.2 6.0 7.9 11.3
About NavStar Technologies, Inc.
NavStar is focused on the creation of products and services that provide tracking and monitoring of vehicles and high value cargo, equipment, and other valuable and personal assets. For further information about NavStar Technologies, Inc. visit the company’s website at www.navstarinc.com
About Vortex Solution
Vortex Solution is a full-service provider of Internet and Intranet services with the ability to fully leveraging the power and speed of the Internet to solve complex and business-critical problems. For further information about Vortex Solution visit the company’s website at www.vortexsolution.com
NavStar Technologies, Inc.