Telular Corporation Reports Fourth Quarter and Fiscal Year 2009 Results

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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 Twelve Months Ended
September 30, 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 Twelve Months Ended
September 30 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

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