Location Based Technologies® Inc. (OTCBB:LBAS) CEO,
Dave Morse, has released a letter to shareholders.
Dear Shareholders,
Year-end is a time for both reflection and a time to look forward. In
looking back at 2014, LBT is particularly proud of achieving several key
milestones in strategic areas:
-
Total paid monthly users (defined as the total number of users that
paid a minimum of $12.95 for a month of service during the past year)
exceeded 72,000, an increase of more than double (123%) compared to
the prior year;
-
Service income achieved break-even levels in mid-2014, which will
enable gross margins from service revenues to accelerate in future
periods as many costs related to service revenue are fixed in nature;
-
Monthly service income exceeded $100,000 per month starting in July
2014;
-
Excluding the provision for inventory valuation reserves, the Company
realized a 20% gross margin on device sales as compared to a negative
20% for the previous year; and
-
Overall gross margins were positive for the first time in the
Company’s history.
These major advances reinforce LBT's core value proposition of
attracting and retaining customers while creating the potential for a
positive return on investment for you, our shareholders, in this
Internet of Things (IoT) high growth space.
We have focused on cutting our costs in areas with minimal impact upon
our customers and have refocused our resources on growing the business
in 2015 in the following four ways:
-
Expanding our US based sales by partnering with a world class
distributor. Contract signed.
-
Expanding our sales in Mexico through key strategic retail outlets.
Contract signed.
-
Launching a major initiative focused on partnering with auto
dealerships in the US.
-
Introducing our new 3G PocketFinder devices into the US, Canadian and
Australian markets.
Our yearend filing can be seen at www.sec.gov
and it contains specific information on each of these key initiatives
along with high level revenue projections. Customers, employees,
business partners and shareholders intersect with many common
expectations and our commitment at LBT is to deliver the best value and
the strongest results possible to each. Our vision remains clear and our
resources are aligned – we know that our success is tied to the growth
of our customer base and subscription revenues. That is our focus.
Each of our key initiatives for 2015 provides dynamic growth
opportunities that will carry us to our ultimate achievement of
profitability. These exciting initiatives set the stage for what we
believe to be a richly rewarding new year. We have a team that is up for
and eager to meet these challenges.
As always, we sincerely thank you for your continued hope in the success
of our company and for your continued trust and confidence. We look
forward to 2015 with excitement and confidence, hoping that it will be a
year of success, growth, and profits for all.
Sincerely,
David M. Morse, PhD
CEO
About Location Based Technologies
A publicly traded company, Location Based Technologies (LBAS) designs
and builds dedicated GPS products and services that are affordable and
easy to use. The Company’s consumer products are sold under the
PocketFinder brand, and its commercial products are sold under the LBT
brand. For more information, visit: www.pocketfinder.com
or www.locationbasedtech.com.
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Actual results may differ significantly
from management's expectations. These forward-looking statements involve
risks and uncertainties that include, among others, risks related to
competition, management of growth, new products, services and
technologies, potential fluctuations in operating results, international
expansion, outcomes of legal proceedings and claims, fulfillment and
data center optimization, seasonality, commercial agreements,
acquisitions and strategic transactions, system interruption, inventory,
government regulation and taxation and payments. More information about
factors that potentially could affect Location Based Technologies’
financial results is included in Location Based Technologies’ filings
with the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and subsequent filings.
PocketFinder and Location Based Technologies, Inc. are trademarks of
Location Based Technologies, Inc. registered in the U.S. and other
countries.
Copyright Business Wire 2014