Minorplanet Systems USA, Inc., a provider of telematics-based management solutions for commercial fleets, has reported financial results for the second quarter and six months of fiscal 2003 ended Feb. 28, 2003.
According to the company, total revenues were $12.0 million for the second quarter of fiscal 2003, compared with total revenues of $16.1 million for the second quarter of fiscal 2002 ended Feb. 28, 2002. The company reported a net loss of $4.4 million ($0.09 loss per share) for the 2003 second quarter, compared with a net loss of $8.3 million ($0.17 loss per share) for the 2002 second quarter, including a non-recurring inventory write-down of $4.7 million ($0.10 per share).
For the first six months of fiscal 2003, total revenues were $25.7 million, compared with total revenues of $34.6 million for the 2002 six months. The company reported a net loss of $8.9 million ($0.18 loss per share) for the fiscal 2003 six months, compared with a net loss of $11.4 million ($0.24 loss per share) for the comparable period a year ago, including the $4.7 million ($0.10 per share) inventory write-down.
"VMI* (Vehicle Management Information*) sales in the second quarter of 2003 resulted in $2.0 million in deferred product revenues that will be recognized in future periods," said W. Michael Smith, executive vice president and chief financial officer. "As of Feb. 28, 2003, the company had a total of $7.0 million in deferred product revenues from VMI that will be recognized in future periods."
Fiscal 2003 Second Quarter Operating Highlights
SBC Communications, Inc. signed a one-year extension through Jan. 30, 2004 of its agreement for Minorplanet Systems USA to provide mobile location and communication services to about 34,500 service vehicles operated by SBC companies across the nation.
The company says it completed its largest VMI installation to date, installing units in 550 vehicles for Trinity Waste Services, a Fort Worth-based solid waste collection and disposal company.
Minorplanet Systems USA has cumulatively sold and installed a total of about 5,900 VMI units through February 2003, including 1,450 units during the 2003 second quarter.
The company says their gross margin once again improved, increasing by 3.3 percentage points to 43.2 percent in the 2003 second quarter, compared with 39.9 percent in the 2002 second quarter, excluding the $4.7 million inventory write-down. The gross margin strengthened primarily due to higher ratable product margin associated with VMI product sales and lower warranty costs associated with units installed in SBC vehicles.
The company signed its second wireless agent agreement for GSM services with T-Mobile, one of the nation's largest wireless carriers. Under the agreement, Minorplanet's VMI customers will contract directly with T-Mobile for any wireless GSM services.
Operating expenses, excluding sales and marketing costs associated with VMI, were about one-fourth lower than the year-ago period as management continues to tightly control overhead costs in all other operating areas of the company. Sales and marketing costs for the second quarter were up $1.4 million from the comparable period a year ago as the company continued to expand market operations.
About Minorplanet Systems USA, Inc.
Minorplanet Systems USA, Inc. (minorplanetusa.com) markets, sells and supports Vehicle Management Information* (VMI*), a fleet management solution that contributes to higher customer revenues and improved operator efficiency. VMI combines the technologies of the global positioning system (GPS) and wireless vehicle telematics to monitor vehicles, minute by minute. The company also markets, sells and supports a customized, GPS-based fleet management solution for large fleets like SBC Communications, Inc., which has approximately 34,500 installed vehicles now in operation.
Headquartered in Richardson, Texas, Minorplanet currently markets its VMI fleet management technology in the Dallas/Fort Worth, Houston, Atlanta, Los Angeles and Austin, Texas, markets, with plans for expanding into other metro markets in the future.