Wireless Matrix To Focus Exclusively On Software-As-A-Service Business
Wireless Matrix Corporation recently announced that it intends to focus exclusively on its leading service chain performance management solution, FleetOutlook. Accordingly, the Company will begin outsourcing production of its previously self-manufactured hardware devices. This move is expected to increase the Company's competitiveness and profitability while facilitating growth of its high-margin recurring revenue business.
"We have decided to focus all our resources on our applications business, which is both our chief differentiator in the marketplace and the key driver of our long-term growth," said J. Richard Carlson, president and chief executive officer of Wireless Matrix. "We believe concentrating on our SaaS business model will enhance our competitive position while at the same time improving performance for our investors."
Wireless Matrix plans to close its manufacturing facility in Burnaby, B.C. within the next six months. The Company expects to realize cost savings of at least $2 million annually as a result of headcount reductions in excess of 10% of its workforce, reduced operating costs and favorable pricing from suppliers. The full savings are expected to be realized once the changes are implemented in the second half of fiscal 2011, and will be partially offset by some one-time costs.
The Company will disclose further details of its financial performance and outlook when it announces fiscal 2010 results on July 23, 2010.
About Wireless Matrix
Wireless Matrix Corporation is a leader in mobile resource management providing service chain execution solutions to enterprises with service fleets. Our solutions provide location intelligence for managing, measuring and monitoring service execution, while at the same time increasing productivity and reducing operating expenses within service fleet operations. The Wireless Matrix solution suite includes FleetOutlook, a web-based platform that provides management and fleet operators complete visibility into their operations, enabled by real-time wireless data communication services over a variety of proprietary modems and hardware devices. Wireless Matrix is headquartered in Herndon, Va.
SOURCE: Wireless Matrix Corporation