Telular Flying Under Investors’ Radar

Telular (WRLS) released its first quarter FY2012 results on Thursday, January 26. Management not only exceeded our expectations but raised forward guidance again. Telular agreed to acquire SkyBitz for $42M in cash and stock on Dec. 5. This is a major transaction for Telular, increasing the size of the company approximately 70%.  The transaction is expected to close on February 1, 2012 and be immediately accretive to both cash and earnings.


Telguard: Provides primary and backup alarm communication solutions for residential, VoIP, small business, financial, commercial and fire system markets. These products transmit full data from virtually all security and fire systems to central stations using the cellular network.

TankLink: Tank monitoring products offers solutions for M2M communications. Tank monitoring and automatic replenishment solutions help address the inventory management needs in the petroleum logistics, bulk chemicals and bio fuels industries.

SkyBitz will make up the third segment. Based outside of Washington, D.C., SkyBitz provides real-time information on the location and status of assets. More than 700 enterprises rely on SkyBitz technology. SkyBitz delivers its solution via SkyBitz Insight, a secure web-based application that is fully customizable and requires no software downloads.


Telguard service revenue increased approximately 6.3% over the last 12 months.  The slow growth is due to a decrease in subscribers during FY-Q3 from Telular’s largest customer (probably ADT) terminating 29,000 subscribers in that quarter. The latest deactivation was during the recent quarter. We estimate the number of terminations at approximately 20,000.  We noted in a previous article management expected another 25,000 disconnects from this customer.
…Click here to read the complete article at SA…


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