Management Reaffirms 2008 Earnings Guidance
ANNAPOLIS, MD, Oct 14, 2008 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, reports its preliminary third quarter-end closing indicates revenue of $50 million. This is an increase of 14% from $44 million in the previous quarter and 33% from $38 million in the third quarter of 2007. Also, quarter-end cash and equivalents increased to $38 million from $28 million at the end of the previous quarter after a small reduction in total debt, with no borrowings on $22 million of bank credit lines.
The foregoing results are preliminary and are subject to change based upon the normal quarter-end review process. The final results will be reflected in the company's quarterly report on Form 10-Q for the third quarter of 2008.
"While we typically do not release preliminary results, we chose to do so at this time in light of unprecedented disruptions in the financial markets," said Maurice B. Tose, chairman, president and CEO of TCS. "Based on current orders and backlog, we expect to meet or exceed our full year 2008 earnings guidance that we had revised upward after the end of the second quarter. Further, we expect our secure deployable satcom systems, wireless text messaging, and public safety solutions to support continuing growth momentum into 2009."
The company will provide results for the third quarter ended September 30, 2008 in its upcoming press release and conference call scheduled for October 30, 2008 at 5:00 p.m.
About TeleCommunication Systems
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) engineers and delivers highly reliable wireless communications technology. TCS is a leader in wireless text messaging and location-based technology, including E9-1-1 services and commercial applications like navigation that use the precise location of a wireless device, and secure satellite-based communications systems and services. Customers include leading wireless and VoIP carriers around the world, cable MSOs, automotive telematics vendors, and agencies of the U.S. Departments of Defense, State, and Homeland Security. For more information, visit www.telecomsys.com.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are based upon the company's current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated. The words, "believe," "expect," "intend," "anticipate,"' and variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to statements about (a) the company's expectations as of the date of this announcement which are based upon limited available information that is dynamic and subject to risk and uncertainty, (b) the company full year 2008 earnings guidance, (c) the company's continuing growth momentum in 2009, and (d) the company's products.
Additional risks and uncertainties are described in the company's filings with the Securities and Exchange Commission (SEC). These include without limitation risks and uncertainties relating to the company's financial results and the ability of the company to (i) sustain profitability, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand for its products and services, (iii) conduct its business in foreign countries, (iv) develop software and provide services without any errors or defects, (vii) protect its intellectual property rights, and (viii) implement its sales and marketing strategy. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All information in this announcement is as of October 14, 2008. The company undertakes no obligation to update or revise the information in this announcement to conform to its actual results or changes in the company's expectations.
Senior Vice President and CFO
TeleCommunication Systems, Inc.
SOURCE: TeleCommunication Systems, Inc.