Company Expects $3M of Additional Orders Before Quarter EndANNAPOLIS, MD, May 21, 2008 (MARKET WIRE via COMTEX News Network) -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, today announced that the company has received orders for approximately $5.8 million in messaging and location software and related systems in the second quarter of 2008 for deliveries expected before June 30. This compares to an average of about $4 million per quarter in 2007 and $10.8 million in the first quarter of 2008.
In addition to the $5.8 million of orders in hand, TCS believes that it is likely to receive at least $3 million of additional second quarter messaging license orders for increased capacity, driven by SMS usage growth by TCS's messaging customers of long standing. Based on Cellular Telecommunications and Internet Association (CTIA) statistics, US text messaging traffic grew more than 130% between 2006 and 2007. TCS expects annual triple-digit growth to continue through 2009 and beyond. This growth is fueled by intercarrier messaging, televoting and unlimited in-network text messaging plans. Looking ahead, text messaging usage is expected to continue to grow as a reliable, easy-to-use transport for new services such as mobile payment, mobile banking, location-based mobile search and ad-sponsored content.
Much of this second quarter business is with two North American CDMA carriers that have become TCS text messaging customers during the last year. TCS provides software to US wireless carriers for short message service (SMS) also known as text messaging, and earns revenue from perpetual licenses based on capacity, customization, feature enhancements, and software maintenance. TCS SMS systems include its short message service center platform, and related wireless intelligent gateway which has both messaging and location-based services functions.
"TCS's reputation of providing proven and reliable text messaging solutions has attracted a growing customer base," said Maurice B. Tose, Chairman, President and CEO of TCS. "Our smsExpress solution provides a cost-effective and reliable means to handle the explosive text messaging growth that carriers are experiencing and has played a strategic role in TCS's efforts to expand market share even as this market undergoes rapid expansion. As one of the few companies in the world that holds multiple messaging and location patents, we are well positioned to support wireless carriers with hosted and in-network messaging and location solutions. We believe that the rapid expansion of messaging presages what wireless carriers will experience with location technologies, and TCS is well positioned to be a proven partner for this new revolution to come."
About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) produces wireless data communications technology solutions that require proven high levels of reliability. TCS provides wireless and VoIP E9-1-1 network-based services, secure deployable communication systems, engineered satellite-based services, and commercial location applications, like traffic and navigation, using the precise location of a wireless device. Customers include leading wireless, cable MSOs, and VoIP carriers around the world, and agencies of the U.S. Departments of Defense, State, and Homeland Security. For more information, visit www.telecomsys.com.
Except for the historical information contained herein, this news release contains forward-looking statements as defined within 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 subject to risks and uncertainties and are based upon TCS' current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated. Risks include the possibility that anticipated additional orders are not received, that text messaging usage will not continue to grow and that the TCS customer base will not continue to grow, that customer orders could be cancelled, that current carrier customers could opt to provide text messaging capabilities in a different manner or from competing sources, that the market position that TCS has established will not be considered by customers as a good partnership relationship for location-based services, and those risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2006 and Form 10-Q for the quarter ended September 30, 2007.
Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.
TeleCommunication Systems, Inc.
Scott Liolios or Matt Glover
SOURCE: TeleCommunication Systems, Inc.