NEW YORK ( TheStreet) -- Debra Borchardt: FleetMatics ( FLTX) had a successful offering on Friday, and the stock is already trading up. I'm with the CEO of FleetMatics, Jim Travers. So this company tracks trucks, essentially. Now let's talk about that, because I would think most customers like the idea of being able to know where their trucks are, where they're going, and be able to track them at all times. Jim Travers: Yes. They are. And the heart of what we do is really providing small-business owners the visibility to manage in their mobile assets and today, the majority of those customers have nothing in place to see what's happening with their mobile assets. We provide a SaaS
software as a service -based offering to allow them to see actionable intelligence, very graphical, to allow them to understand what's happening with the vehicle, the time of location, distance, speed, and allow them to route them more efficiently so they can improve revenue and reduce cost. Debra Borchardt: Right. This is the kind of thing that a big company, like a UPS ( UPS) or a FedEx ( FDX) does nationally, but for a small-business owner, they really don't know where to go to get help with this. Jim Travers: That's right. The bigger companies obviously spend a lot on information technology and tend to build their own. Small business doesn't have the time and often not the resources to go off and have a system like this. And that's where the SAAS model, the software delivery model, is perfect for this customer. It's easy to adopt, low cost, he can get into our system very easily, get the information he needs and start taking actions to improve his business. Debra Borchardt: Give us an example of a customer that would use your service and how? Jim Travers: Well a good example on the high end of our business, while we focus on the small-business owner, we do have a larger fleet offering. Comcast ( CMCSA) is a customer of ours today. We're very pleased with that contract being awarded to us this year. In their situation, they wanted to take our system and integrate it into their work order management system. They have a billing system that manages their service employees. And they wanted to integrate that into location. So that integration was very powerful. It gave them a lot of return on investment. And we're in the process now of rolling that contract out. But a more typical customer would be like a Midway Industrials, which supplies forklift parts. They're 13 vehicles. Our average customer is really in the 20-vehicle range, so we tend to be in the smaller range typically. And again, in that situation we're providing visibility to that customer that he doesn't have today through the insight of very intuitive-based reporting that we can provide him to reduce cost.
Debra Borchardt: When I look at FleetMatics numbers, your revenues have been going up, your gross profits have been going up, but then I noticed that your net income had come down in June of '12, so can we get some color around that? What happened? Jim Travers: Yeah. Basically, we've had some one-time charges. We've been in the process of going through our initial public offering, and it is an expensive proposition today for companies to go public, so we did have some one-time expenses that we had to take in June, weren't operating level, but they were more one-time expenses related to the IPO. Debra Borchardt: And so what will you do with the proceeds of this offering? Jim Travers: Basically, grow the business. One of the keys here, Debra, is we have a wide open market opportunity. Eight out of 10 customers that we engage with do not have the FleetMatics system in place, so we have a significant opportunity to grow the company, so certainly investing aggressively in sales and marketing expenses is the key, potentially looking at some acquisitions that might make sense from either a new product category that we can go sale back to our customer or also looking at geographic expansion in that way. So stretching our balance sheet is key to that. Debra Borchardt: All right. Well it sounds like the market agrees with you. I think you have some growth ahead of you because they are moving that stock higher on its first day of trading. Follow @WallandBroad -- Written by Debra Borchardt in New York. >To contact the writer of this article, click here: Debra Borchardt.