CHICAGO--(BUSINESS WIRE)--Telular Corporation (NASDAQ: WRLS):

- Q409 Telguard Sales Up 35% Year-Over-Year

- Company Reaches 500,000 Total Subscribers Milestone, with Strong Subscriber Adds in Quarter

- Total Recurring Service Revenue Up 29% Year-Over-Year and Now Represents 50% of Total Revenue

Telular Corporation, a global leader in connecting businesses and machines over wireless networks, today announced financial results for the fourth quarter and fiscal year ended September 30, 2009. In the fourth quarter, Telular reported revenue of $12.2 million, about flat with last quarter, and grew net income sequentially to $1.4 million or $0.09 per diluted share, from $39,000 or $0.00 per diluted share. Fourth quarter net income included a benefit to cost of sales of $670,000 resulting from successfully negotiating a reduction of a contractual liability.

For the fourth quarter of 2009, income from continuing operations before non-cash items increased to $1.9 million, including the benefit to cost of sales, compared to $1.1 million in the prior quarter. Income from continuing operations before non-cash items is a non-GAAP measure which adds back depreciation, amortization and stock-based compensation expense to income from continuing operations. For further information, see the reconciliation of this measure to income from continuing operations in accordance with GAAP, on the last page of this press release.

In the fourth quarter of 2009, Telguard product revenues increased 56% year-over-year to $4.5 million. Telguard service revenues increased sequentially from $5.4 million to $5.8 million and were up approximately 22% from the prior year period. Recurring revenue from services now represents 50% of total revenue. In the fourth quarter of 2009, Telular sold approximately 33,000 Telguard units, within the expected range, and activated approximately 36,000 new Telguard subscribers, ending the period with approximately 500,000 subscribers. TankLink and Terminal product sales were $1.7 million in the fourth quarter of 2009.

“Demand for our Telguard product remains strong, as we increased Telguard sales 35% from the prior year period,” commented Joe Beatty, president and chief executive officer of Telular Corporation. “Our growth is being fueled by the trend toward wireless as the primary communication path for security applications. Going forward, we expect Telguard unit sales to be in the range of 30,000 to 35,000 per quarter which will continue to drive our growth of recurring revenue.”

“We had strong performance from Telguard activations in the quarter, reaching the 500,000 total subscribers milestone on September 29, 2009. Fourth quarter recurring revenue from our Telguard service business increased 22% over the prior year period and now, when combined with Tanklink recurring service revenue, represents 50% of total revenue. We demonstrated strong operational efficiencies in the quarter, translating to improved bottom line performance, even while revenues remained flat sequentially. We have $1.2 million remaining in our stock repurchase program, a solid balance sheet with cash and cash equivalents of $17.9 million, and remain focused on maximizing long-term, shareholder value,” concluded Mr. Beatty.

For fiscal year 2009, the Company reported revenue of $47.2 million. The Company reported fiscal year 2009 income from continuing operations of $2.3 million, or $0.13 per diluted share. For fiscal year 2009, income from continuing operations before non-cash items was $4.7 million.

Investor Conference Call

Telular’s quarterly conference call will be held today at 4:30 p.m. Eastern Time. To participate on the teleconference from the United States and Canada dial 877-941-2324 (International dial 480-629-9716). You may also monitor the call via webcast at www.telular.com (select Earnings Conference Calls in Investor Relations). A replay of the call will be available from Thursday, November 5, 2009 beginning at 6:30 p.m. ET through Sunday, November 8, 2009 ending at 11:59 p.m. ET by dialing 800-406-7325 (enter pass code 4177501#) or internationally at 303-590-3030 (enter pass code 4177501#).

About Telular

Telular Corporation provides event monitoring and wireless access solutions for business and residential customers, enabling devices such as phones, faxes, computers and commercial machinery to be connected using wireless technology. With over 20 years of experience in the wireless industry, Telular Corporation has developed solutions to deliver remote access for voice and data without significant network investment or disruption. Headquartered in Chicago, Telular Corporation has additional offices in Atlanta and Miami. For more information, please visit www.telular.com.

Please be advised that some of the information in this release presents the Company’s intentions, beliefs, judgments and expectations of the future and are forward-looking statements. It is important to note that the Company’s actual results could differ materially from these forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s report on Form 10-K for the fiscal year ended September 30, 2008 Copies of these filings may be obtained by contacting the Company or the SEC.

TELULAR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AND STATEMENTS OF CASH FLOWS
(Dollars in thousands, except share data)
BALANCE SHEETS
					September 30,			September 30,
					2009			2008
					(Unaudited)
ASSETS
	Cash and cash equivalents				$ 17,904			$ 21,168
	Trade receivables, net				7,589			6,904
	Inventories, net				7,803			10,007
	Prepaid expenses and other current assets				273			1,023
	Assets of discontinued operations				-			4,709
		Total current assets			33,569			43,811
	Property and equipment, net				2,193			2,016
	Other assets				4,563			2,142
		Total assets			$ 40,325			$ 47,969
LIABILITIES AND STOCKHOLDERS' EQUITY
	Current liabilities				$ 4,903			$ 7,802
	Total stockholders' equity				35,422			40,167
	Total liabilities and stockholders' equity				$ 40,325			$ 47,969
	Outstanding shares of common stock				14,911,688			18,960,612
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
					Twelve Months Ended September 30,
					2009			2008
					(Unaudited)			(Unaudited)
	Net cash (used in) provided by continuing operations:
		Net cash provided by operating activities			$ 5,453			$ 7,084
		Net cash used in investing activities			(3,341	)		(750	)
		Net cash (used in) provided by financing activities			(8,989	)		1,475
					(6,877	)		7,809
	Net cash provided by discontinued operations				3,613			3,105
	Net (decrease) increase in cash and cash equivalents				$ (3,264	)		$ 10,914

TELULAR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
Unaudited
					Three Months Ended September 30,					Twelve Months Ended September 30,
					2009			2008		2009			2008
	Revenues
		Net product sales			$ 6,153			$ 6,763		$ 24,754			$ 45,933
		Service revenue			6,092			4,740		22,440			20,221
			Total revenue		12,245			11,503		47,194			66,154
	Cost of Sales
		Net product cost of sales			4,422			4,691		18,270			31,805
		Service cost of sales			2,605			2,197		9,953			9,817
			Total cost of sales		7,027			6,888		28,223			41,622
	Gross margin				5,218			4,615		18,971			24,532
	Operating Expenses
		Engineering and development expenses			1,128			1,112		4,783			5,171
		Selling and marketing expenses			1,408			1,208		6,039			6,287
		General and administrative expenses			1,286			1,718		6,118			7,409
			Total operating expenses		3,822			4,038		16,940			18,867
	Income from operations				1,396			577		2,031			5,665
		Other income, net			90			148		319			436
	Income from continuing operations before income taxes				1,486			725		2,350			6,101
		Provision for income taxes			52			-		65			-
	Income from continuing operations				1,434			725		2,285			6,101
		Loss from discontinued operations			(22	)		-		(419	)		(7,480	)
	Net income (loss)				$ 1,412			$ 725		$ 1,866			$ (1,379	)
	Income (loss) per common share:
		Basic
			Continuing operations		$ 0.09			$ 0.04		$ 0.13			$ 0.32
			Discontinued operations		(0.00	)		-		(0.02	)		(0.39	)
			Net income		$ 0.09			$ 0.04		$ 0.11			$ (0.07	)
		Diluted
			Continuing operations		$ 0.09			$ 0.04		$ 0.13			$ 0.32
			Discontinued operations		(0.00	)		-		(0.02	)		(0.39	)
			Net income		$ 0.09			$ 0.04		$ 0.11			$ (0.07	)
	Weighted average number of common shares outstanding:
		Basic			14,900,353			19,128,215		17,125,601			19,145,132
		Diluted			15,231,145			19,172,400		17,205,307			19,145,132

Reconciliation of Non-GAAP Measures

We use income from continuing operations before non-cash items as an additional measure of our operating performance. This measure is not recognized under generally accepted accounting principles. The reconciliation below demonstrates how we calculate this measure from our financial statements

			Three Months Ended September 30				Twelve Months Ended September 30,
			2009		2008		2009		2008
			(Unaudited)				(Unaudited)
Income from continuing operations			$ 1,434		$ 725		$ 2,285		$ 6,101
Non-cash compensation			210		352		1,384		1,705
Depreciation and amortization			280		184		1,071		674
Income from continuing operations before non-cash items			$ 1,924		$ 1,261		$ 4,740		$ 8,480

Income from continuing operations before non-cash items should be considered in addition to, but not as a substitute for, other measures of performance reported in accordance with accounting principles generally accepted in the United States. While we believe that income from continuing operations before non-cash items, as defined above, is useful within the context described above, it is in fact incomplete and not a measure that should be used to evaluate the full performance of Telular Corporation. Such evaluation needs to consider all of the complexities associated with our business, including, but not limited to, how past actions are affecting current results and how they may affect future results, how we have chosen to finance the business and how regulations and other aforementioned items affect the final amounts that are or will be available to shareholders as a return on their investment. Net loss determined in accordance with U.S. GAAP is the most complete measure available today to evaluate all elements of our performance.

Investor Relations Contact:
Brinlea Johnson
The Blueshirt Group
(212)-551-1453
brinlea@blueshirtgroup.com