TBUS: CEO Discusses Emerging Global Opportunities for Growth
Submitted By Knobias ClipReport
TBUS: CEO Discusses Emerging Global Opportunities for Growth
By Fain Hughes, fhughes@knobias.com
The Chairman and CEO of DRI Corporation (TBUS), David L. Turney, presented today at the The Wall Street Analyst Forum in New York, NY.
DRI Corporation is a digital communications technology provider in the domestic and international public transportation and transit security markets. Its products include: TwinVision(R) and Mobitec(R) electronic destination sign systems, Talking Bus(R) voice announcement systems, Digital Recorders(R) Internet-based passenger information and automatic vehicle location/monitoring systems, and VacTell(TM) video actionable intelligence systems. The products help increase the mobility, flow, safety, and security of people who rely upon transportation infrastructure around the globe. Using proprietary hardware and software applications, these products provide easy-to-understand, real-time information that assist users and operators of transit bus and rail vehicles in locating, identifying, boarding, tracking, scheduling, and managing those vehicles. The products also aid transit vehicle operators in their quest to increase ridership and reduce fuel consumption, as well as to identify and mitigate security risks on transit vehicles.
Mr. Turney explained, “For a company our size, we have an incredibly large footprint. Our products are used in more than 55 countries, and we have a strong market share. Over 60% of our revenues are derived from the transit vehicle builder. The other 40% comes from end users, such as the new York Transit Authority. The geographic diversity of our revenue distribution, which is 45%-U.S. and 55%-International, gives us a lot of insulation for the ups and downs in particular markets. Our customer base consists of many blue chips which also indicates the stability of our customer base. We are uniquely positioned because we serve the intelligent transportation systems market and the security market.”
“Emerging economies are really driving our business right now. Places like India are seeing a growing middle class that has money, but not necesarily cars, and wants to travel. The want modern and clean buses. Delhi, India alone is expected to soon purchase 4,000 new buses to replace its fleet of 2,500. We plan to have a nice piece of that business. This is an example of what is happening in emerging economies worldwide. The available served market is $1.3 billion. DRI is active in about $450 million of that available served market. Security, energy and environmental concerns are expanding that market.”
Mr. Turney added, “Our sales growth initiatives include an increased focus on airports. We are already in JFK, LAX and BWI. We are also seeking to expand our international business by entering new markets and pursuing the increased penetration of existing markets.”
Mr. Turney provided an update on the Company’s financial guidance. He said, “Our guidance for 2008 is revenue in the $68-70 million range, and our long term guidance is $100 million run rate by 2010. We are tracking on both of these trends. For 2008, EPS is expected to be $0.14-$0.17. We are now confident that we will be at the upper end of that range.”
In conclusion, Mr. Turney noted, “We are a well-grounded company with a strong established foundation and an international scope. We have a global footprint, long-standing business relationships and unique barriers to entry from competition. Our market cap is approximately 50% below our projected annual revenue. I challenge anyone to find any company on Nasdaq with the same product that serves transportation and is active in four hot investment areas- security, enviroment, energy conservation and quality of life through mobilty.”
