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Pointer Telocation Ltd. (Nasdaq CM: PNTR
, TASE: PNTR) -– a leading supplier of technology and service for managing mobile resources and providing roadside services to the vehicle industry and to the insurance market, reports the supply and installation of advanced solutions to manage a fleet of vehicles in
Brazil in a tri-annual agreement for over
$2 million. This is the largest transaction that Pointer signed in
Brazil since commencing sales in
Brazil a year ago.
Pointer entered into an agreement with a leading company in
Brazil and installed its solutions in a fleet of over 2,000 motor vehicles. The order will result in a significant increase in the number of the Company's subscribers in
The transaction was based on a new business model for Pointer, with dedicated embedded resources in customer premises, which enable Pointer's customers to benefit from achieving efficiency and savings when managing mobile resources with a fairly low investment, and to utilize, in the best possible way, the global growth and change that the Telematics field is undergoing.
Pointer's solutions will enable the Brazilian company to effectively track and manage fuel consumption in the company's motor vehicles, prevent fuel waste and unauthorized use of the vehicle, improve productivity and reduce accidents. The systems installed in
Brazil also include a package of solutions to manage a fleet of vehicles with advanced control and command technologies, road services and the means for locating and returning vehicles.
These solutions were developed and manufactured in Cellocator, the technology division of Pointer which is considered to be the leading provider of technologies for Mobile Resources Management (MRM) for vehicle fleets and cargo. Cellocator's product platforms enable Pointer to provide its customers,
inter alia, with vehicle diagnostic services, monitoring drivers' behavior and payment according to driving traits based on cellular technology.
David Mahlab, President and CEO of Pointer, said:"We are very satisfied that aBraziliancustomer ofsucha significant sizechose our solutions. This important agreementis part of our consistent growth strategy fortheCompany'soperations abroad, while increasing revenues and profitability of the products and services that theCompanysupplies.TheCellocatorDivision's productsstrengthen our position in the marketsin which we operate and the presenttransaction inBrazilis proofoftheCompany'sability to sign agreements with top-rate customers in the markets in which we operateand to offer thema unique technology and a completesolution. I believe that the increased international exposure and recognition for the Company's products will continue and even increase the growthtrends and the number of customersabroad."Afterconsistent growth and record revenues in the first quarter of 2011, I estimate that in the coming year we will be able to increasetheCompany'srevenues from operations abroad, which today compriseapproximately28% of the Company's total revenues."
Pointer reported record revenues in the first quarter of 2011 of an aggregate of
$21 million, 26% growth compared to the equivalent quarter in 2010. In 2010, the Company's revenues increased by 13% and aggregated
73.9 million dollars.
Revenues from the sale of products increased in the first quarter of 2011 by 63% to
7.8 million dollars (37.2% of total revenues), and revenues from the provision of services increased by 11% to
13.2 million dollars (62.8% of total revenues).
The growth in revenues is expressed also in improved profitability.