Option reports full year 2013 results

FY revenues drop as company focuses on M2M market.
Option N.V. (EURONEXT Brussels: OPTI; OTC: OPNVY), a global leader in wireless connectivity, security and experience, today announced its results for the full fiscal year ended December 31, 2013. The financial information reported in this release is presented in Euros and has been prepared in accordance with the recognition and measurement criteria of IFRS as adopted by the European Union. The accounting policies and methods of computation followed in the attached financial statements are the same as those followed in the most recent annual financial statements.
Business Update

In the last few years Option has been transformed into a company executing a new business model targeting the big “Internet of Things” market opportunity. Option starts with a clean sheet, has kept in house all core competences acquired over the years and has the ambition to become a global player again in the enterprise-grade “Intelligent Gateway” solutions market’. As such during 2013 Option further evolved from a B2C to a B2B model focused on the Machine to Machine (M2M) market.

In 2013, the sales focus has been to increase Option’s geographical reach in the M2M market. In the geographical markets of Europe, North America, Latin America and Asia Pacific, the sales focus has been directed at 5 key market segments:

Utilities
Industrial Telematics
Environmental monitoring
Secure Financial transactions
General connectivity

The development focus for CloudGate has been directed at two areas. The first focus was to enrich the product offering by developing extension cards and by improving the application scope of the software platform in key market segments. This resulted in the launch of several additional expansion cards, the deployment of CloudGate Universe, Option’s cloud based platform, and added support for the most important industrial protocols. The second focus was on the expansion of the eco-system by increasing the types of supported devices (sensors, industrial assets, etc.) and by supporting the major third party applications in the M2M space allowing Option’s customers to fully leverage the versatility of the CloudGate platform.

In the M2M market, the sales cycles are typically long with lengthy pilot programs before final acceptance. This shows the importance that customers place on reliability and product quality when selecting an M2M gateway and this plays directly to Option’s strengths as a company.  Following final acceptance existing customers generate repeat sales with healthy margins for years to come.

To minimize strain on the company’s financial resources, the cost structure of the organization was further reduced while preserving the company’s core competences.

The new business environment is characterized by lower volumes and fewer channels.  Therefore, the logistical organization has been simplified by transferring operations from Cork, Ireland to Leuven, Belgium.

In August 2013 Christine Pollie joined as the CFO of the company and in October 2013 Frank Deschuytere was appointed as Option’s CEO while Jan Callewaert was named Executive Chairman. The new executive team will continue to implement the company’s strategy of becoming a leading player in the buoying M2M market worldwide

Frank Deschuytere, CEO Option commented:
“CloudGate, Option’s intelligent M2M gateway, is uniquely positioned to capture the opportunities in the key M2M markets defined. The solution is highly competitive. Looking at the number of partners that have adopted the CloudGate solution, looking at the opportunities in our sales funnel and looking at the speed at which the sales cycles mature, I feel confident that this will result in a healthy top line growth in line with our plans.”
Financial Highlights of the full fiscal year 2013 (extract)

Total revenues for the full year 2013 were EUR 9.4 million compared with EUR 40.8 million realized in 2012. Product related revenues decreased from EUR 13.1 million to EUR 9.2 million, while software and license revenue decreased from EUR 27.7 million to EUR 0.2 million. Due to the expiration of the license agreement with Huawei, there are no more revenues reported in 2013 under this agreement (2012: EUR 27.0 million of revenues for the full year).

Gross margin for the full year 2013 was 35.9% on total revenues, compared with a gross margin of 63.4 % for the comparable period in 2012 which was positively impacted by the revenue received from the license agreement with Huawei.

Compared to the full year 2012, total operating expenses for 2013 decreased from EUR 22.3 million to EUR 14.4 million as a result of downsizing the Group, additional savings and a correction on the incentives received from the Belgian government agency for salaries of research personnel. The normalized operating expenses amount to EUR 16.8 million for 2013 compared to EUR 26.0 million in 2012. The one-offs for 2013 generated some extra income such as recovered professional taxes (EUR 0.5 million) and reversal of IPR (EUR 3.2 million – against 7.3 million in 2012). The one-offs as cost are redundancy and restructuring costs (EUR 1.2 million) and impairment on R&D (EUR 0.1 million – against 3.6 million in 2012).

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Netop Creates Secure Tunnels Into Internet of Things With SecureM2M

New SecureM2M solution counters cyber-threats with simple, secure remote access into industrial controls, building automation and other networked devices.
Netop today announced that its solution for secure remote access into devices – SecureM2M – is available to product developers, system integrators and IT and network professionals in both software and hardware formats. Netop SecureM2M creates secure tunnels into the Internet of Things – allowing easy-to-deploy access into industrial controls, building automation, HVAC and SCADA systems. Netop SecureM2M provides port-specific access and logs all sessions, which makes it ideal for use by vendors and other trusted, out-of-band agents. Because it performs well in low-bandwidth/high-latency environments, Netop SecureM2M is the solution of choice for maritime, natural resources and other industries where devices are remotely deployed and connected via satellite.
“When we began developing our secure, M2M solution, we wanted to create a way to improve access to remotely deployed devices while increasing overall network security,” said Kurt Bager, CEO of Netop.
“SecureM2M successfully removes network vulnerabilities by taking devices off of the public-facing Internet and makes it easier for organizations to manage and control employee and out-of-band access to systems and devices. It is the next step in the evolution of secure connectivity.”
Netop’s cloud-based connectivity technology extends access beyond the local network without exposing end points to the public-facing Internet. Port-specific access limits the devices and applications that are exposed, allowing access without compromising security. Netop SecureM2M can be deployed onto industrial controls and other device LANs as a plug-and-play hardware device or installed directly onto servers or devices. These flexible deployment options give Netop SecureM2M a wider range of device and platform support than any other option.
“With the rapid expansion of the Internet of Things, the ability to remotely support devices is more crucial than ever,” said Bager. “As we have seen in recent hacking events, when HVAC systems and other devices are exposed to the public Internet or accessed through an open VPN port, they present a new risk to networks – including payment systems and other critical business systems. Our customers need a solution that allows remote support without adding risk.”
Both the software and hardware versions of Netop SecureM2M are available directly from Netop. Manufacturers and developers can register for free trials of Netop SecureM2M at http://www.netop.com/SecureM2M.
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Numerex Enables Transition of ETwater to Next Generation Technology

Irrigation Technology Company Looks to the Leader in M2M to Provide Smart Solutions.
Numerex, a leading provider of on-demand and interactive machine-to-machine (M2M) solutions, which enables the Internet of Things (IoT), announced today that it has completed the successful upgrade and migration of ETwater, the Smart Irrigation Technology Leader, to next generation network and application technologies for their line of connected smart irrigation solutions.
Recent technology advancements convinced ETwater to accelerate the integration of an advanced M2M/IoT solution in its own business. Naturally, ETwater looked to Numerex to assist in the planning and execution of the project that included deployment of a turnkey, packaged solution including network services, support, and key technical capabilities.
The technology upgrade was powered by Numerex FAST, a cloud-based, highly scalable, horizontal service delivery platform which is complemented by an intelligent, web-based management portal. NumerexFAST gives customers like ETwater the ability to offer faster and more reliable wireless connectivity, enabling critical improvements in efficiency and enhanced return on investment.
Since the implementation of the upgrade, ETwater customers utilizing the new solution provided by Numerex have benefited from faster user interface navigation, rapid irrigation schedule updates, and improved synchronization with systems that provide weather data and other information. This advanced capability also enhances the speed of OTA, or “over the air” updates. That allows ETwater to help their customers stay current with the latest features and functionalities using remote upgrading of deployed devices–all of this without ever having to dispatch personnel to service the device in the field.
Scott Wiley, Senior Vice President, Marketing and Product Management said:
“We are proud to partner with technology companies like ETwater to help them deliver innovative products and the latest in M2M / IoT technologies to their customers.”
“The decision to migrate to next generation network and application technology can be a daunting task for any customer, but it is one that Numerex is adept at delivering.”
According to ETwater SVP Product Lee Williams:
“Numerex has gone out of their way to provide us with technical support resources, and to help streamline implementation efforts. Furthermore, they worked with us on the business side to provide an upgrade path, and they keep us updated on the status of their relationships with their network service partners. We are very pleased with the process and with the results.”
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Wireless Logic makes major investment into SIM Provisioning Platform upgrade for their cellular and satellite M2M customer base

Launching this month, Wireless Logic – a leading provider of M2M Managed Services has carried out a major overhaul of their SIM estate provisioning and control platform ‘SIMPro’. The platform empowers users to remotely control a range of activities through their SIM-connected devices.
Highlights:
++ Customer-centric redesign enables more functionality for users with multiple SIM estates
++ One platform window to multiple mobile network and satellite connected devices
++ Many new features to drive rapid deployment, personalisation, increased security and control
Beyond mainstream features such as provisioning, tariff selection and personalised billing, the new platform has a number of applications including activation profile settings, where tailored characteristics for a specific device can be developed and then configured directly onto new SIMs. This is particularly important for estates where configuration of SIMs to specific profiling can be time consuming. The new feature saves time and streamlines the entire provisioning process.
With security and control key attributes for successful M2M connectivity programmes, SIMPro delivers a one-window viewing platform to monitor data usage and activity on a per SIM basis. This functionality comes into its own when combined with Wireless Logic’s secure private network overlay ‘NetPro’, giving customers the capability to monitor real-time data use and react if and when devices demonstrate unusual patterns of activity. With all SIMs and networks terminating through one VPN, management and control procedures become more effective and seamless.
The SIMPro platform also links to Wireless Logic’s latest M2M product extension – MapPro mapping solutions. This service integrates the power and breadth of HERE maps and geo-data (HERE – a Nokia business), which customers can utilise either as a bundled package with SIM subscriptions or as a standalone application.
The SIMPro provisioning platform already manages and monitors in excess of one million SIM-enabled devices. The applications involved are endless… from traffic cameras to vehicle tracking, and from e-health patient monitors to vending machines. The new platform will become an even more essential tool for systems integrators managing increased numbers of devices where performance monitoring and operational status can be critical in delivering best value. By accessing SIMs across all of the UK’s and Europe’s Mobile Networks and additionally Inmarsat Satellite, the ‘one-window to everything’ can reduce costs, create efficiencies and identify and rectify problems rapidly. SIMPro can integrate easily into customers’ own systems with a new range of APIs.
Philip Cole, Wireless Logic’s European Sales Director and co-founder, believes the platform’s ‘one-window’ is mission critical in conducting large-scale M2M SIM management:
“The major changes across our provisioning platform have resulted from a significant customer engagement programme to identify areas for improvement.”

“The latest incarnation of SIMPro is a complete re-development of previous versions with a greater emphasis on the customer experience. It works equally as well with multiple SIM estates as well as smaller scale deployments where real-time monitoring of high-data use SIMs is vital.”
“We passionately believe that SIMPro is the right platform for every M2M cellular-based application.”
Wireless Logic recently announced new commercials with the SIMPro provisioning platform. Recognising that customers can be locked into protracted contracts, SIMPro can now be used on a per SIM license basis. This enables organisations to overlay existing network relationships with the SIMPro platform and establish a single control point across one or more networks.
Now in their fifteenth year of operation, UK-based Wireless Logic has seen continued growth that mirrors the exponential expansion of the world of M2M and the ‘Internet of Things’ (IoT). The organisation now has country offices in France, Germany and Spain. In 2011, a MBO was performed by co-founders Oliver Tucker and Philip Cole with support by UK equity specialist ECI Partners (ecipartners.com).
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ORBCOMM Acquires Euroscan, Europe’s Leading M2M Provider of Refrigerated Transportation Solutions

Expands ORBCOMM’s leadership in cold chain and establishes distribution channel for all ORBCOMM solutions in Europe.
ORBCOMM Inc., a global provider of Machine-to-Machine (M2M) solutions, today announced that it has completed the acquisition of Euroscan Holdings, B.V. (Euroscan), a leading global supplier of refrigerated transportation temperature compliance recording systems. Based in the Netherlands, Euroscan’s integrated turn-key systems are used worldwide to ensure the safe and secure transportation of food and pharmaceuticals by monitoring and assuring temperature compliance throughout the supply chain. Terms of the acquisition will be available in subsequent public filings.
Euroscan’s temperature recorders enable its customers to comply with the European cold chain temperature and food safety regulations and gain significant operating advantages and efficiencies. Over the past few years, Euroscan began transitioning its recording product suite to an M2M wireless solution and sells wireless adaptor products that allow them to convert their large installed base of recording products to wireless telematics solutions. Today, Euroscan has a worldwide installed base of 200,000 recording units of which approximately 10,000 are wireless subscribers. Euroscan generates a large portion of its business through Original Equipment Manufacturer (OEM) factory installs of its temperature monitoring products on refrigerated assets, trucks and trailers. The demand for telematics services to enable refrigerated transportation monitoring has fueled rapid expansion of Euroscan’s wireless solutions business.
This acquisition supports ORBCOMM’s long-term growth strategy of adding vertical expertise, technologies and geographic markets to strengthen its end-to-end solutions portfolio. ORBCOMM will leverage Euroscan’s distribution channels in Europe to increase market expansion of ORBCOMM’s suite of M2M products and services in key industries such as transportation and heavy equipment. In addition, ORBCOMM expects that the scale and diversity of its global M2M solutions portfolio will drive growth for Euroscan’s distribution channels in the Far East, South America and South Africa.
As part of this transaction, Ameriscan, Euroscan’s North American subsidiary and a leading provider of temperature monitoring devices, will add scale and an expanded portfolio of cold chain monitoring services that will complement ORBCOMM’s North American transportation operations.
Marc Eisenberg, Chief Executive Officer of ORBCOMM, said:
“The acquisition of Euroscan allows ORBCOMM to complement its North American leadership position in M2M solutions by adding a significant distribution channel in Europe and other key geographies where Euroscan has market share.”
“By leveraging Euroscan’s suite of powerful asset monitoring, control technology and M2M solutions, ORBCOMM will be able to provide an even greater level of value, service and return on investment for a broader set of customers in the global M2M market.”
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Tele2 to Provide CSL DualCom Ltd with Connectivity Solutions

Tele2 AB (Tele2) today announced that Tele2 M2M Global Solutions will provide connectivity solutions to CSL DualCom Ltd and its customers within security, healthcare and general M2M applications across Europe.
CSL DualCom provides a platform and products that enable the reliable delivery of alarm signals from protected premises to the alarm receiving center. CSL DualCom pioneered the move from wired to wireless technology in the electronic security industry, as the inventors of dual signaling, to become market leader. Dual signaling combines telephone line signaling with GPRS mobile technology.
The partnership with Tele2 enables CSL DualCom to optimize the processes of deploying and managing connectivity solutions, from manufacturing all the way to the end user.
Rami Avidan, Head of Tele2 M2M Global Solutions, commented:
“CSL offers the most resilient and reliable managed network in the industry.”
“It is the DualCom Gemini Managed Network that provides the critical connectivity for hundreds of thousands of protected premises throughout Europe and enables CSL to push the boundaries of innovation. CSL now wants to continue growth outside of their UK home market, into the Nordics and across Europe.”
“We are delighted that CSL DualCom has chosen Tele2 as the supplier for this expansion”.
Phil Hollett, CEO of CSL, commented:
“The Nordics are a rapidly growing market and because of their leading position in the adaption of wireless M2M, are strategically important to CSL. From experience we know that in order to maintain high customer service levels we required a highly responsive, customer focused operator to complement our proven track record. Tele2 was the obvious choice.”
Tele2 M2M Global Solutions provides CSL DualCom with seamless connectivity and connectivity management solutions across Europe, to support their expansion. The contract runs for 3 years and will add tens of thousands of connected devices to CSL DualCom’s significant base.
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Text2Valet Parking Solution From DCS Uses Telit’s CC864-DUAL CDMA/1xRTT Module

Text2Valet enables direct SMS messaging to valet stands. Requests for pickup sent direct to cellular printer located at the stand.
Telit Wireless Solutions, a global provider of high-quality machine-to-machine (M2M) solutions, products and services and DCS Solutions, a provider of high-quality wireless data products, solutions, and services to the wireless data market, today announced that DCS is to utilize a wireless cellular printer that employs Telit’s 800/1900 MHz CDMA/1xRTT CC864-DUAL module in its innovative parking solution.
Text2Valet is a simple to use, cost effective, unique communications solution for businesses that operate a vehicle valet service. The uniqueness comes from the use of a cellular wireless printer operating on a nationwide CDMA cellular network. Customers are not required to download any type of app onto their mobile phones; instead, they simply use their own SMS functionality, making the service available even to non-smart phones.
At drop off, vehicle owners receive a valet ticket with a local telephone number. When ready to depart, customers simply send a text message to the phone number on the valet ticket. The request for vehicle pickup is sent directly to the cellular printer located at the valet stand. Valet attendants are prompted immediately to retrieve the vehicle. This improves comfort, convenience as well as personal security for valet patrons.
Chris Bursey, managing partner, of DCS, said:
“We recognized the need for a truly mobile parking solution that did not require an Internet connection.  In addition we wanted to deliver the industry’s lowest cost solution without cutting corners.”
“Text2Valet is another great DCS product.  It is an innovative turnkey solution that delivers significant benefits to operators of a valet service as well as their customers,” said Mike Ueland, senior vice president and general manager of Telit Wireless Solutions North America.
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Mobily and Jasper Go Live in Saudi Arabia

Mobily, one of the leading communications companies in KSA, along with Jasper Wireless, the leading connected devices platform powering the mobile Internet of Things, today announced the availability of services to wirelessly connect machine-to-machine (M2M) and consumer electronics devices in Saudi Arabia.
The number of wireless M2M connections in the Middle East is forecast to rise to 119.7 million by the end of 2016, according to research by industry analyst firm Visiongain. Mobily is launching its commercial services at a time of significant growth in the IoT market in the region, with businesses adopting M2M services across multiple sectors including the construction industry – with heating, ventilation and air-conditioning (HVAC) and security systems – utilities, m-health and connected vehicles. Jasper is providing Mobily with the flexibility and ease of implementation to deliver the necessary applications and services to profitably connect and manage a range of embedded wireless devices across Mobily’s key vertical markets.
“With a 40 percent market share, Mobily has an excellent presence in the MENA region – a region itself that has enviable growth rates and potential, particularly for M2M communications,” said Cindy Patterson, Chief Revenue Officer, Jasper.
“Working across multiple markets, the cloud-based delivery model is critical to Mobily’s ability to quickly launch commercial services and capitalize on the rapid growth potential in the market. Mobily is well placed now with the necessary applications and services to accelerate its offerings to businesses looking to exploit the growth in IoT services globally.”
Dr. Marwan Al Ahmadi, Chief Business Officer at Mobily, said:
“Working across such a range of vertical markets, from automotive and healthcare to construction and utilities, requires a level of flexibility and scalability that only a cloud-based platform can deliver.”
“The Jasper IoT platform not only delivers all this, but also the added benefit of a network-effect, giving us access to enterprise customers already live and delivering M2M services and our customers the ability to reach global markets with one platform. We are pleased to work with the company that is the number one choice for businesses around the world as they look to take advantage of new IoT opportunities.”
The deployment and launch of M2M services in Saudi Arabia by Mobily is aligned with the Etisalat Group M2M strategy of creating synergies between the Etisalat Group subsidiaries.
To achieve market success in a phenomenally fast-growing connected devices ecosystem, enterprises depend on their operator to enable them to find the right business models to service different verticals and consumers globally. Jasper has developed the applications and services that support highly flexible business models as well as the automation of operational processes, including custom device provisioning, instant activation, real-time diagnostic tools and detailed billing and usage reports, ensuring a superior out-of-box end-user experience.
Mobily joins a growing list of other Jasper Wireless operator partners including AT&T, América Móvil, NTT DOCOMO, Telefónica, VimpelCom, KPN, SingTel, Telenor, Etisalat, Telstra, Rogers and more. With this Mobily also becomes part of the M2M World Alliance providing the benefit of leveraging the reach of the largest M2M partnership.
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Wyless Announces Appointment of Gilli Coston as Managing Director of Wyless Europe Plc

London, March 10th 2014 - Wyless today announced the finalization of its acquisition of the M2M division of ASPIDER Holdings NL, by Wyless Group Holding (Suisse) SA, the group parent company, based in Bursins, Switzerland.

Wyless today announced the reorganization of its European entities and the appointment of Gilli Coston, Chief Strategy Officer, as Managing Director of Wyless Europe Plc. This company, formerly Wyless Plc, will be the main driver of Wyless's accelerated development programme for its Internet of Things ( IOT ) strategy in Europe. Gilli will take responsibility for all European business, including the integration of the Dutch and German ASPIDER M2M operations recently acquired from ASPIDER Holdings. Of its over 1.5 million connected devices globally, Wyless has approximately 600,000 connections in Europe, with a target of one million by end of 2014.

Gilli will bring to bear the many years of management experience she gained in senior roles with Telefonica and O2 allied with a strategic understanding of the massive global opportunity offered by the emergence of the IOT phenomenon. Based in London, she will be dividing her time between the UK, Holland, Germany and Boston and will report to Dan McDuffie, CEO.

Gilli Coston commented, "This appointment represents a challenge which I am looking forward to taking up. Wyless now has geographical presence and strong management and sales capabilities in the UK, Holland and Germany. Once integrated I see immediate economies of scale and new product opportunities by combining Wyless equipment/device bundled solutions offerings with ASPIDER core network SIM issuance capabilities. A few years ago analysts were forecasting a huge expansion of the deployment of connected devices in the M2M industry which always lagged behind expectations. The Internet of Things ( IOT ) is changing that. The expansion is now upon us and Wyless intends to be the market leader".

Dan McDuffie, CEO, Wyless, commented, "Our geographical and product and services strategy is evolving at a rapid pace and I'm delighted that Gilli is with us as a key member of our Executive Team. Her immediate focus will be on the integration of our new European companies and consolidating our position as the customers and partners obvious choice as the market leader in providing M2M and IOT products and services".

Source: Wyless

Networking On the Road: Volkswagen and Audi Bank on Vodafone

Vodafone today announced a new agreement with Volkswagen and Audi in Europe to provide automotive connectivity, starting with new Audi models from 2015.
Highlights:
++ Vodafone continues to develop a strong position in the automotive market
++ Bringing connectivity to Volkswagen and Audi vehicles
An embedded SIM chip developed specifically for the automobile industry will feature in new vehicles, The Audi connect portfolio currently comprises in-car navigation, communications and infotainment services together with a WLAN Hotspot.  In 2013, the Audi S3 was the company’s first model to integrate a 4G-capable infotainment system– enabling Vodafone customers to benefit from access to the Vodafone 4G network in their vehicles. The S3 with Audi connect will be on display on this year’s Vodafone CeBIT stand.
Chief Executive of Vodafone Machine-to-Machine, Erik Brenneis, said:
“We are pleased to supply Machine-to-Machine (M2M) communications to Volkswagen Group. As a result of this agreement, we will strengthen further our position in the automotive sector – one of the key markets for M2M communication.”
“Our efficient mobile communications networks ensure that the networked car is becoming more and more widespread, including across European national borders”.
The global SIM will be widely installed in vehicles in future and will use the Vodafone network and global M2M service platform to provide customers with high-speed Internet access on the road. The SIM chip was specifically developed to meet the stringent quality requirements of the automobile industry and functions reliably at temperatures from -40° to +85° Celsius.  The activation and service processes were designed by Vodafone and based on Volkswagen Group’s specific requirements.
The automotive industry already occupies a central position in the rapidly emerging M2M communications sector. One of the main driving forces is the planned EU-wide “eCall” emergency call system which automatically sends out a SOS in the event of a vehicle accident. In addition, an increasing number of people are interested in accessing online information services, music and videos through the electronic systems built into their vehicles: these communications and internet-based infotainment services also underpin a strong growth trend in the M2M communications sector.
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