CALGARY, July 6, 2017 /CNW/ - Trakopolis IoT Corp. (TSXV: TRAK) is pleased to provide an update on initial sales results of its recently launched electronic driver log book product.
In the first two weeks following the official launch of the product the Company has experienced high demand for "Trakopolis ELD". Several pilots have started and to date the Company is pleased to have won 4 new customers that will collectively generate $180,000 of upfront hardware revenue, which will be recognized over future months, and approximately $7,200 of monthly recurring revenue post implementation. This translates into a 2% increase to monthly recurring revenue. Expanding ARPU (average revenue per unit) is a key focus of management and these early anticipated results are encouraging.
Of note, the majority of the increasing sales funnel generated from our channel partners and direct efforts are from new customers. The Company will launch targeted campaigns throughout the 3rd quarter to our existing customers while expanding efforts with channel partners and resellers across North America.
Trakopolis' Chief Revenue Officer, Ted Duffield commented, "After refining our ELD product in Q1 we are very pleased with the strong response from the market, funnel progression, deployed pilots and initial wins. Additional reseller agreements have been inked which positions our ELD software to contribute to our continued revenue growth."
"Being adaptable and hardware agnostic enables Trakopolis to deliver better features and functionality with greater flexibility to the diverse end users in search of an ELD product that is an extension of their asset tracking platform. Combined with superior training and support during implementation, customers can migrate to Trakopolis ELD seamlessly," stated Brent Moore, Chief Executive Officer of Trakopolis.
Watch our ELD Solutions Video Here: https://www.youtube.com/watch?v=js7-2oaNNZs
About the ELD Mandate
Another key driver of growth for the telematics industry overall is the incoming electronic logbook requirements. This is a result of the U.S. FMCSA's (Federal Motor Carrier Safety Administration) new rules aimed at improving the safety of commercial truck and bus drivers. The rule requires drivers to install and use electronic logging devices (moving away from paper records) to ensure the compliance of hour-of-service regulations. The mandate goes into effect in December 2017 and will be implemented in phases over the following two years. According to FMCSA estimates, the ELD equipment market is worth ~US$1B; more meaningful is that it requires customers to step back and evaluate their current technology offering. Canada is expected to follow with similar regulations. To beef up its offering in this area, Trakopolis purchased (through a sales-based royalty) the electronic logbook software assets of Verigo in November 2016. Trakopolis is now able to offer its growing customer base a solution to address these regulations.
Trakopolis is a Software as a Service (SaaS) company with proprietary, cloud-based solutions for real-time tracking, data analysis and management of corporate assets such as equipment, devices, vehicles and workers. The Company's asset management platform works across a variety of networks and devices. Trakopolis has a diversified revenue stream from many verticals including oil and gas, forestry, transportation, construction, rentals, urban services, mining, government and others.
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements regarding: the business and operations of Trakopolis; expected sales of ELD; legislative and regulatory changes; the integration of ELD with Trakopolis' existing business; the market opportunity of ELD technology; ELD campaign launch; and sales and revenue from ELOG. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the market opportunity and commercial success of ELD; sales of ELD to existing and new customers; general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments, including legislative developments with respect to ELD; those additional risks set out in the Trakopolis' public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although Trakopolis believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Trakopolis disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Trakopolis IoT Corp.
For further information: Brent Moore, President and Chief Executive Officer, Trakopolis IoT Corp., Telephone: (403) 450-7854, Email: [email protected]