Location Based Technologies Inc. (OTCBB: LBAS) hit the news wire today with an announcement that holds the potential to drive profitable revenue growth for the company going forward. By unlocking a massive application market outside the traditional realm of its PocketFinder® offering, LBAS stands to broaden its market and increase revenue streams.
LBAS recently inked a $1.2M professional service contract with LoadRack.com, LLC – a leading technology solution provider to the trucking & freight monitoring industry – to integrate its PocketFinder® network with the new LoadRack™ real-time location system.
According to today’s press, the new partners feel strongly that the unparalleled visibility afforded by their solution will revolutionize the trucking industry and also help generate upwards of $12.5M for LBAS over the next year.
“Smart” Solutions To The Rescue For Struggling Trucking Industry
Efficiency is the name of the game in the trucking industry and achieving it is made more difficult by the day.
Exorbitant diesel prices and a wounded economy have been forcing drivers off the road since last summer.
A shortage of qualified drivers mixed with government regulations focused on reducing emissions and limiting the number of hours that drivers can work also hurts the cause. Throw traffic congestion and a lack of new technologies into the mix and you’re looking at a pretty ugly situation.
“Smart Solutions” to the rescue!
A “smart” real-time tracking solution cable of re-routing shipments, managing time delays, and maximizing fuel efficiency while minimizing emissions by remotely monitoring travel speed in real-time, presents a very compelling value proposition to the trucking/freight industry.
With the American Trucking Industry estimating that the industry spent roughly $150 billion on diesel fuel in 2008, up from $112 billion in 2007, a product such as the one being developed by LoadRack has perhaps never been so timely.
Partnership A Winner Any Way You Slice It
The partnership is quite promising for LBAS for a number of reasons.
First and foremost, MONEY: the deal is worth $1.2M up front and is expected to help boost sales into the $13M range a year from the solution’s launch.
Second, it reflects the versatility and value of its core technology and allows the company to spread its wings into an extremely lucrative vertical market with pretty much zero resource expenditure. LoadRack has established a favorable position in the industry and is willing to do all of the heavy lifting.
In addition to the enormous smart phone application software and personal location GPS markets, LBAS is now positioning its offering to take a piece of yet another massive opportunity. Given the nature of its core technology, the diversification likely won’t stop here.
For a company just getting its start, today’s announcement is quite promising. Only time will tell if all the good news coming out of the company will translate into financial gains and success in the markets, but LBAS certainly appears to be off to a great start.
Today’s News Release:
“Location Based Technologies Signs Initial Service Agreement for $1.2 M With Trucking Service Provider”
Monday March 2, 7:00 am ET
ANAHEIM, Calif.–(BUSINESS WIRE)–Location Based Technologies, Inc. (OTCBB:LBAS – News), a leading-edge service provider of personal, pet and asset location devices, today announced it has signed its first Professional Service Agreement for $1.2M with LoadRack.com, LLC for customization of software and hardware.
“By partnering with LoadRack™, we establish a cornerstone distribution relationship within the massive trucking and freight monitoring industry while allowing LBT to stay focused on its primary market of protecting family, pets, and personal belongings,” said Desiree Mejia, COO of Location Based Technologies. “In this way we leverage a vast vertical market and channel partner by applying our cutting edge PocketFinder Network™ with a hardware application to revolutionize the trucking industry. By partnering with LoadRack, we anticipate sales to exceed $12,500,000 during the first twelve months from launch.”
Due to an overwhelming need in the trucking industry for a reliable asset tracking application, LBT’s solution allows users advanced technology to assist shippers, carriers and truck brokers to optimize resources and coordination by procuring available trucks and loads, while allowing for load visibility across the supply chain. The customized interface for the LoadRack solution can be accessed via the Internet, cell phone or landline to show its exact location in real time.
In addition, the devices include several advanced features, such as allowing users to designate customizable zones or lanes which allow stakeholders to be notified when a device leaves or enters a zone, load temperature monitoring, route changes and the ability to manage time delays. By combining the PocketFinder® solution with the LoadRack™ software, load integrity, customer service and load visibility will enhance the procurement and delivery of all goods.
About LoadRack.com, LLC
LoadRack ™ is the premier provider of truck and load matching, with an industry first real-time asset tracking application. Their advanced technology allows shippers, carriers, and truck brokers to optimize resources and coordination by procuring available trucks and loads, while ensuring load integrity across the supply chain. Accessed via Internet, cell phone, or landline, the system allows users to determine load location and status, designate safe and unsafe zones and lanes, monitor load temperatures, facilitate route changes, and effectively manage equipment problems and delays.
About Location Based Technologies
A publicly traded company (OTCBB:LBAS – News), Location Based Technologies designs and develops leading-edge personal locator devices and services that incorporate patented, proprietary technologies designed to enhance and enrich the way businesses and families interact globally. The company is headquartered in Anaheim, Calif. For more information, visit http://www.pocketfinder.com.
This news release contains forward-looking statements that involve risks and uncertainties. Actual results and outcomes may differ materially from those discussed or anticipated. For a more detailed discussion of these and associated risks, see the company’s most recent document filed with the Securities and Exchange Commission.
Contact:
Location Based Technologies
David Morse, 800-615-0869
dave@pocketfinder.com
or
Northstar Investments
Glenn Busch, CFP, 714-310-8641
Investor Relations
glenn@pocketfinder.com
Source: Location Based Technologies
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