Really disappointed with this update and looking at the SP drop, so is the market in general.
Although the change in outlook is not related to trading per se, which still gives me hope for the future, these additional 'unexpected' costs don't do the company any favours from an investor perspective.
Could be a good top up point for those with a longer term view.......
"Wireless remote tracking and monitoring products company Starcom Plc announces the launch ofWatchlock Pro, an advanced version of its Watchlock product, its autonomous battery powered locking solution with security applications for remote locations and tracking mobile assets, which was awarded Physical Security Product of the Year Award at IFSEC 2012... This upgrade addresses key aspects of monitoring coverage and, notably, battery life, which should expand the applicability and marketability of this key product."
"LSE:STAR:Starcom has surged by as much as 150% to an eight-month-high after the remote tracking expert signed a potentially lucrative deal with the largest Porsche dealership in Germany.It's taken over a year of relationship-building and testing, ..."
Starcom is clearly now getting sales traction for its products - with perhaps watchlock leading the way - a guatamalean distributor contract worth on average $0.6m per year, plus yesterdays announcement of another south american distributor worth perhaps $2.5m per year.
At present margins this might quadruple the operating profit - the market has taken notice - SP is up 10% since yesterday.
Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, is pleased to announce the official worldwide launch of the award-winning WatchLock high security padlock and electronic alarm system.
The Company has chosen the UK to be the first market for the launch, with the USA to commence in April and other territories to follow throughout the year. Starcom's team has completed a two day training workshop with the UK salesforce of Assa Abloy. A further positive development will be that Assa Abloy will now market the WatchLock under each of the Assa Abloy, Mul-T-lock and Yale brands, rather than just under the Mul-T-Lock brand, as has been the case to date.
Initial trials of the Watchlock commenced at the end of 2012 and were above management's expectations, resulting in over 20,000 units sold in 2013. Most of these units were sold directly through the Company rather than through Mul-T-Lock. The Directors of Starcom expect that the full implementation of the formal partnership with Assa Abloy, following the above mentioned training workshop, will have a positive impact on WatchLock sales going forward.
Avi Hartmann, CEO of Starcom, commented: "We believe that with the full support of Assa Abloy's world leading brands behind us we will see an increase in sales for our award-winning WatchLock. For a small company, entering a market of this size can only be achieved with a strong partner, and we know we have the best in Assa Abloy."
Micha Kimchi, CEO of Mul-T-Lock, commented: "The WatchLock is the winner of the 2012 IFSEC Innovation Award, and is a unique offering which combines top mechanical padlock security with an innovative GPS tracking and cellular communication device. It has been adopted by Assa Abloy EMEA as a high impact product, which we will be offering to all our high security brands in the UK market."
"Starting today, following the advanced training to the Mul-T-Lock, Yale and Abloy UK salesforces, all of our brands are set and ready to capture every opportunity in the market, though the locksmith and professional end-user channels."
Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, is pleased to announce a non-exclusive distribution agreement with MAM Objects S.L, a telecommunications distributor with operations in South America which is also the exclusive distributor for a major global telecommunications company in the territory. The agreement, related to the distribution of the WatchLock, will see Starcom's award-winning device marketed and distributed throughout Central and South America with initial deployment in Ecuador and Colombia.
Starcom's CEO Avi Hartmann said:
"It is pleasing to see Starcom's global roll-out of its WatchLock device continue to gather momentum. Following the distribution agreement in the Ukraine earlier in the year, this agreement will see the WatchLock marketed in the fast developing Latin American market which we hope will result in significant sales of the product in the region. We continue to employ our strategy of working with distribution partners, as it offers us wide access to markets at a low cost point. Starcom looks forward to developing its Latin American presence, and expanding its market penetration into even more geographies in the future."
By Bryce Elder
Starcom suffers fall in shares after profits hit by slow sales
Shares in Starcom, the Israeli maker of car tracking devices, fell after the Aim-quoted company reported a pre-tax loss of $89,000 for the six months to June 30 against a profit of $868,000 a year earlier and said profits for the full year would be lower than forecast, writes Kate Burgess.
Its half-year performance was attributed to slower sales of intelligent locks and monitoring devices, as well as higher marketing and R&D costs. The company also paid off a loan with the proceeds of its February flotation, and booked the expense of options granted to executives.
Michael Rosenberg, chairman, said the first two months of the year were affected by the IPO process, but the company had now received its
first big order for smart padlocks.
In these markets, poor results are punished and although the second half is usually the more buoyant / significant, there's no disguising the negative outcome here hasn't gone down well, as exemplified by the sp response.
Might well take awhile to regain its poise, given the 'slower rate of growth envisaged', so I'm off to find more appealing alternatives rather than hang around, fwiw but good luck to the more patient than me - sasa.
When Bertilla Teo joined Starcom Greater China as CEO in July 2009, the agency was reeling from a major blow. Earlier that month, China's biggest advertiser, Procter & Gamble, had pulled its non-TV tactical planning and buying business in China, an account easily worth several million dollars in fees.
Ms. Teo, coming directly from a decade-long stint at MEC in North Asia and Singapore, has painstakingly rebuilt Starcom into one of one of China's leading media agencies, impressing staff and clients -- including P&G -- along the way.
By spring 2012, Ms. Teo had regained nearly all of the lost P&G business, plus she has picked up new accounts from marketers like Mars, Wrigley, Fujian Beer and China Telecom, and retained work for brands like Coca-Cola.
"She has managed to surround herself with the right people and talent, she has a very strong team and has really established trust vis-a-vis the clients," Jean-Yves Naouri, chief operating officer at Publicis Groupe, described the China turnaround. "She doesn't make promises she cannot deliver. She is a magnet both for clients and talent."
The Singapore native is the first to credit the strong team she carefully assembled and nurtured over time. For that core group to remain intact for several years is a rarity in China, where chronic job-hopping is every agency director's biggest headache.
"Everyone works together," Ms. Teo said, although China remains a massive challenge, "especially the rapid speed of change, especially on the digital and social media front."
She is also coping with two competing trends among her clients. Local companies like beauty brand Herborist need help to grow internationally, while global advertisers like Mars are trying to appeal to local tastes despite making western products that are not always an easy sell.
"Chinese are generally not big chocolate eaters compared to their western counterparts," Ms. Teo said. "There's a misperception by Chinese that it's 'heaty' food for the body. Our challenge is to communicate that it's not."
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