Telular Corporation is a leader in the design and manufacturing of wireless products. Telular\'s proprietary telecommunications interface technology enables standard phones fax machines computer modems or monitored alarm systems to utilize available cellular wireless service for either primary or back-up telecommunications. Their product lines incorporate the world\'s leading cellular standards and are marketed worldwide. Headquartered in Vernon Hills Illinois Telular has regional sales offices in Atlanta Delhi Dubai Mexico City Miami and Singapore. Telular Corp. has a market cap of $45.01 million; its shares were traded at around $2.6101 with a P/E ratio of 26.1 and P/S ratio of 0.68.
Highlight of Business Operations:Other income for the three months ended June 30, 2009 decreased $92 to $65 from $157 for the same period of fiscal 2008. The decrease was primarily due to a reduction in interest income of $47, the reclassification of a loss on disposal of assets related to discontinued operations from other Income to Loss From Discontinued Operations in fiscal 2008 of $35 and a decrease in various miscellaneous expenses of $10.
Other income for the nine month period ended June 30, 2009 decreased $59 from $288 for the same period of fiscal 2008. The decrease was primarily due a reduction in interest income of $40 and a decrease of $19 in various miscellaneous expenses.
Management regularly reviews net working capital in addition to cash to determine if it has enough cash to operate the business. On June 30, 2009, the Company had $18,201 of unrestricted cash and cash equivalents and a working capital surplus of $27,084. Based upon its current operating plan, the Company believes its existing capital resources, including the line of credit with Silicon Valley Bank, will enable it to maintain its current and planned operations. Cash requirements may vary and are difficult to predict given the volatility of demand in certain of the developing markets targeted by the Company. The Company expects to maintain the levels of cash reserves that are required to undertake major product development initiatives and to qualify for large sales opportunities.
Investing activities used $3,107 of cash for the first nine months of fiscal 2009 primarily from the acquisition of SupplyNet Communications for $2,375 and from the purchase of equipment of $732. This compares to cash used in investing activities of $671, primarily from purchase of equipment of $1,011, offset with the release of $340 of restricted cash, for the same period of fiscal 2008.
The decrease in cash from financing activities of $9,012 in the first nine months of fiscal 2009 is due to the Companys payment of notes payable of $978, which were acquired in the SupplyNet purchase, and the repurchase of its common stock on the open market of $8,034. Cash of $2,600 was provided by financing activities in the first nine months of fiscal year 2008 as a result of the exercise of stock options and warrants.
The increase in cash from discontinued operations of $3,333 was due to the collections of trade accounts receivable of $3,239 and $94 from the sale of the remaining fixed assets that were previously associated with the FCP business segment that was abandoned in effective June 30, 2008.
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