Teletouch Sells Legacy Two-Way Radio Division to DFW Communications for $1.5 Million
August 16 2012 - 11:44AM
Business Wire
Teletouch Communications, Inc. (OTCBB: TLLE), a leading U.S.
cellular services provider and consumer electronics distributor,
today announced the sale of its two-way radio and public safety
equipment business unit for approximately $1.5 million to locally
owned and operated DFW Communications, Inc. The sale includes the
transfer of all the assets in the group, including the Company’s
FCC radio frequency licenses used to operate its two-way radio
networks in North and East Texas. Teletouch and its predecessor
companies have provided two-way radio products and services,
starting as a Motorola® Service Station or “MSS” in East Texas, for
over 48 years.
“The decision to divest our two-way radio division is another
step in the ongoing transition of Teletouch to large scale
wholesale distribution of cellular and consumer electronics
products, and was made after concluding that this business unit was
no longer aligned with the Company’s long-term growth strategy,”
said Teletouch President and COO T. A. “Kip” Hyde, Jr. “The sale of
these assets supports our disciplined approach to capital
allocation and effective use of working capital, with the proceeds
being used to pay down debt, while we focus on growing our core
wholesale distribution business.”
Hyde continued, “Although two-way radio services and the direct
sale of public safety equipment is no longer core to Teletouch, we
believe this business has the potential for strong growth, which
led us to seek out a buyer that is focused in these areas. Now as
part of DFW Communications, this group will be led by a solid
leadership team, bringing long-term value for the business, its
customers and partners.”
Mike Fordinal, Vice President and COO of DFW Communications,
stated, “We are excited about the synergy this acquisition brings,
including the added capacity for our two-way wide-area
communications on our own LTR Trunking Systems, new sales
opportunities in both radio and public safety equipment in East
Texas, and all of the terrific professionals we now add to our
team. We see this as a key investment, significantly expanding our
territory and product selection, with tremendous added sales
potential for all of our products, technologies, and people
resources, operating together in a focused enterprise.”
As previously announced, Teletouch is expanding its wholesale
distribution segment, with the expectation that this business unit
will become Teletouch’s primary earnings driver by the end of
fiscal year 2015 (May 31, 2015). Since the Company’s litigation
with AT&T (NYSE: T) was successfully concluded in November
2011, Teletouch has executed several distribution agreements
directly with various cellular accessory and handset manufacturers,
as well as other mobile electronics companies.
See also www.pciwholesale.com and www.pcidropship.com for
additional product information.
About Teletouch Communications
For over 48 years, Teletouch has offered a comprehensive suite
of wireless telecommunications solutions, including cellular,
two-way radio, GPS-telemetry and wireless messaging. Today,
Teletouch is a leading Authorized Services Provider and billing
agent of AT&T products and services to consumers, businesses
and government agencies, operating a chain of 11 retail and
authorized agent stores in North and Central Texas under its “Hawk
Electronics” brand, in conjunction with its direct sales force,
call center operations and various retail eCommerce websites
including: www.hawkelectronics.com, www.hawkwireless.com and
www.hawkexpress.com.
Through its wholly owned subsidiary, Progressive Concepts, Inc.,
Teletouch operates a national distribution business, PCI Wholesale,
primarily serving Tier-1 (AT&T, T-Mobile, Verizon, Sprint)
cellular carrier agents, Tier-2, Tier-3 and rural carriers, as well
as auto dealers and smaller consumer electronics retailers, with
product sales and support available through www.pciwholesale.com
and www.pcidropship.com, among other B2B oriented websites.
Teletouch's common stock is traded Over-The-Counter under stock
symbol: TLLE. Additional information about the Teletouch family of
companies can be found at www.teletouch.com.
Motorola and the registered trademarks of each, any and all
product or service names discussed in relation to Teletouch
Communications, Inc. and its affiliates are the property of their
respective owners.
All statements from Teletouch Communications, Inc. in this news
release that are not based on historical fact are "forward-looking
statements" within the meaning of the PSLRA of 1995 and the
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. While the Company's management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside
of our control, that could cause actual results to materially
differ from such statements. Such risks, uncertainties, and other
factors include, but are not necessarily limited to, those set
forth under the caption "Risk Factors" in the Company’s most recent
Form 10-K and 10-Q filings, and amendments thereto, as well as
other public filings with the SEC since such date. The Company
operates in a rapidly changing and competitive environment, and new
risks may arise. Accordingly, investors should not place any
reliance on forward-looking statements as a prediction of actual
results. The Company disclaims any intention to, and undertakes no
obligation to, update or revise any forward-looking statement.
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