Release date: 2/21/2012
Expands European coverage and expertise with best-in-class mobile communications management provider
Orange, Conn., February 21, 2012 — Tangoe, Inc. (NASDAQ: TNGO), a leading global provider of on-demand Communications Lifecycle Management (CLM) software and related services, has acquired privately held ttMobiles, Limited, a leading provider of mobile communications management solutions and services based in the United Kingdom.
“The acquisition of ttMobiles accelerates our European expansion and enhances our ability to implement and service global programs through local expertise in this important geographic region,” said Al Subbloie, President and CEO of Tangoe. “ttMobiles will enable Tangoe to immediately deliver additional solutions and coverage to our multi-national and European-based customers. In addition, their cloud-based mobile communications management solutions are highly complementary to Tangoe‘s offering, further enhancing our global integrated CLM platform and providing an attractive opportunity to drive cross-sell opportunities over the long-term.”
Multi-national enterprises are facing ever-increasing mobile management challenges to gain asset and spend visibility, contain operational costs, govern and manage device usage, secure corporate data, mitigate mobility risks, and maintain policy compliance. These challenges are further compounded with country- and region-specific regulations, rapid device and service provider turnover, and higher expectations of individualized service by employee end users.
ttMobiles delivers an array of mobility solutions including: mobile sourcing, provider migration, localized charge auditing, personal call management, cost control, recorded call management, fleet administration, and complete outsourced mobile management. The combined capabilities of Tangoe and ttMobiles provide a comprehensive managed mobility service offering with localized delivery and expertise.
“ttMobiles has delivered innovative solutions with exceptional client value to European-based enterprises for more than a decade. Our offerings merge the extensive European knowledge and expertise of our dedicated professionals with the strength of our leading technology to deliver best-in-class mobility management to our clients,” said Aldo Rossi, Managing Director and Co-founder of ttMobiles. “We believe that the combination of Tangoe and ttMobiles will provide an unparalleled mobile management solution essential to European-based organizations, as well as multi-national organizations throughout the world.”
Aldo Rossi will be the Managing Director of Tangoe’s European operations, reporting to Scott Snyder, Tangoe’s Senior Vice President of Corporate Development and Europe. Additionally, ttMobiles executive directors will assume roles in Tangoe’s European operations that correspond to their current responsibilities at ttMobiles. Tangoe will also continue to utilize the ttMobiles brand.
ttMobiles’ Expected to Have a Positive Financial Impact on Tangoe’s Financial Results
As a result of the ttMobiles transaction, Tangoe is increasing its financial guidance as follows:
First Quarter 2012 Guidance: We expect ttMobiles to contribute approximately $0.5 million in total revenue, with approximately $0.4 million in recurring and $0.1 million in non-recurring. As such, total revenue is now expected to be in the range of $32.7 million to $33.2 million, up from prior guidance of $32.2 million to $32.7 million. We don’t currently expect the transaction to have material impact on non-GAAP profitability during the first quarter. We continue to expect Adjusted EBITDA to be in the range of $3.5 million to $3.7 million and non-GAAP net income per share to be approximately $0.08 based on approximately 39.0 million weighted-average diluted shares outstanding.
Full Year 2012 Guidance: We expect ttMobiles to contribute approximately $4.5 million in total revenue, with approximately $3.5 million in recurring and $1.0 million in non-recurring. As such, total revenue is now expected to be in the range of $141.5 million to $143.5 million, up from prior guidance of $137.0 million to $139.0 million. Adjusted EBITDA is now expected to be in the range of $20.0 million to $20.5 million, up from prior guidance of $19.5 million to $20.0 million. Non-GAAP net income per share is now expected to be in the range of $0.42 to $0.43, up from prior guidance of $0.41 to $0.42 based on approximately 39.5 million weighted-average diluted shares outstanding.
Tangoe is a leading global provider of Communications Lifecycle Management (CLM) software and services to a wide range of global enterprises. CLM encompasses the entire lifecycle of an enterprise’s communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, invoice processing, expense allocation and accounting and asset decommissioning and disposal. Tangoe’s Communications Management Platform (CMP) is an on-demand suite of software designed to manage and optimize the complex processes and expenses associated with this lifecycle for both fixed and mobile communications assets and services. Tangoe’s customers can also manage their communications assets and services by engaging Tangoe’s client service group. Additional information about Tangoe can be found at tangoe2016.wpengine.com. Tangoe is a registered trademark of Tangoe, Inc.
Founded in 2001, ttMobiles is the trusted expert in the business of providing solutions to achieve better mobile communications management. ttMobiles combines configurable technology with the extensive local knowledge of its highly experienced and innovative team to provide mobility solutions including: sourcing, procurement, provisioning, asset and usage management, expense and dispute management, personal call and mobile fleet management, and migration services to European-based clients. ttMobiles’ customers include household names in the private and public sectors, with user bases that range from the hundreds to the tens of thousands to mobile devices.
Non-GAAP Financial Measures
Adjusted EBITDA discussed in this press release is defined as net income (loss) plus interest expense, income tax provision, depreciation and amortization, restructuring charge, stock-based compensation expense, decrease (increase) in fair value of warrants for redeemable convertible preferred stock, decrease (increase) in fair value of shares of common stock issued subject to an earn-out as part of the purchase price for an acquisition and contra-revenue attributable to the value of common stock warrants issued to a reseller partner; less interest income and other income. Non-GAAP net income excludes stock-based compensation expense, amortization of intangible assets and deferred financing costs, restructuring charge, loan repayment fee, term loan debt discount, decrease (increase) in fair value of warrants for redeemable convertible preferred stock, decrease (increase) in fair value of shares of common stock issued subject to an earn-out as part of the purchase price for an acquisition and contra-revenue attributable to the value of common stock warrants issued to a reseller partner. Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of Tangoe’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating Tangoe’s financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.
Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Tangoe’s strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about enhanced capabilities, solutions and expertise that Tangoe expects to deliver as a result of the acquisition of ttMobiles. Tangoe may not actually achieve the expectations disclosed in these forward-looking statements, and the reader should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements made. More information about potential factors that could affect Tangoe’s business and financial results is contained in Tangoe’s Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on November 14, 2011. Additional information will also be set forth in Tangoe’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Tangoe makes with the Securities and Exchange Commission. Tangoe does not intend and does not undertake any duty to publicly release updates or revisions to any forward-looking statements contained herein.