@Track Reports Losses
May 12, 2000
@Track Communications, Inc., of Richardson, TX -- formerly known as HighwayMaster -- lost $4.8 million on revenues of $14.1 million in the first quarter of 2000. Revenue for the quarter was down from $17.1 million compared to the first quarter of 1999.
However, @Track president and CEO Jana Bell said the results were expected. "We expect our revenues will increase, especially in the last two quarters of 2000, as we work to install over 28,000 service vehicle units for a major customer," said Bell. "We also anticipate revenue contribution in the third and fourth quarters from TrackWare, our trailer-tracking product, as current customer pilots are converted into sales."
TrackWare is currently being tested by five major fleets, including Dart Transit Company of St. Paul, MN. The 28,000 mobile communications units Bell referred to will go to SBC Communications, Inc., of San Antonio, TX, which owns telecommunications outfits such as Pacific Bell, Southwestern Bell and Ameritech.
As of March 31, 2000, @Track reported an installed base of 49,514 mobile units, compared to 52,263 at March 31, 1999. Deactivations of mobile units for the quarter exceeded additions by 1,311 units mainly due to one customer being deactivated for non-payment, the company said.
"We currently anticipate that by the end of this year we will have installed approximately 3,000 Series 5000 units, 18,000 to 25,000 Series 5005S units and 15,000 to 25,000 TrackWare units," said Bell.
@Track's first quarter loss was small compared to losses two years ago in the first quarter of 1998 when the company lost $11.6 million on revenues of $15.7 million. A management shakeup was followed by cutbacks and a refocussing of corporate efforts. It was to reflect that change, Bell said in a press conference earlier this year, that the company's name was changed from HighwayMaster to @Track.