Telular Corp. Reports Operating Results (10-Q)

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Feb 10, 2009
Telular Corp. (WRLS, Financial) filed Quarterly Report for the period ended 2008-12-31.

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 $29.36 million; its shares were traded at around $1.56 with a P/E ratio of 7.5 and P/S ratio of 0.44.

Highlight of Business Operations:

The decrease of 9% was primarily due to decreased professional fees of $46, as a result of utilizing fewer consultants, reduced travel costs of $50 and a decrease in engineering materials and supplies of $23.

The decrease in selling and marketing of 9% was primarily due to $350 decrease in agent commission offset by an increase in payroll related expenses of $212, of which, $80 was an increase in non-cash compensation and the remaining $132 was an increase in salaries, taxes and benefits. The decrease in agent commissions was due to the lower sales volume. The increase in salaries was to due to additional marketing personnel hired during fiscal year 2008.

The decrease of 10% was primarily due to a $138 decrease in payroll related expenses, a $30 decrease in bank and credit card fees, a $25 decrease in professional fees and a $20 decrease in travel expenses, offset by an increase in proxy solicitation costs of $25 related to the recently settled proxy contest. The decrease to payroll expenses relates to a decrease in non-cash compensation of $54 and an $83 decrease in bonus expense.

Other income for the three months ended December 31, 2008 increased $84 to $91 from $7 for the same period of fiscal 2008. The increase was primarily due to an increase of $16 of interest income, a reduction of miscellaneous business taxes of $60 and $15 for decrease in various miscellaneous expenses.

Investing activities used $2,410 of cash for the first three months of fiscal 2009 primarily from the acquisition of SupplyNet Communications for $2,179 and from the purchase of equipment of $231. This compares to cash provided by investing activities of $181, primarily from the release of restricted cash, for the same period of fiscal 2008.

The decrease in cash from financing activities of $1,798 in the first three months of fiscal 2009 is due to the Companys payment of notes payable of $923, which were acquired in the SupplyNet purchase and the repurchase of its common stock on the open market of $875. Cash of $2,090 was provided by financing activities in the first three months of fiscal year 2008 as a result of the exercise of stock options and warrants.

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