Location Based Technologies designs, develops and sells commercial and consumer wearable global positioning system (GPS) tracking solutions based on worldwide GSM networks. The company markets its consumer products under the PocketFinder brand and its commercial products under the LBT brand. Through these two brands, LBAS allows its customers to accurately track and monitor everything from luggage and pets to mobile equipment and vehicles. The company’s products combine the complexities of emerging GPS location devices and wireless technology into simple, easy-to-use location solutions that allow for streamlined user interaction.
The company’s business model includes revenue from both product sales and monthly service payments. In a letter to shareholders in December 2014, Dr. David Morse, chief executive officer of LBAS, highlighted the company’s recent progress in expanding its market presence within this established sales model. Last year, LBAS’s total number of paid monthly users exceeded 72,000, representing an annual increase of more than 120 percent. This growth helped the company achieve positive gross margins for the first time in its history during 2014.
In 2015, LBAS has focused on cutting costs in areas with minimal impact to customers in order to promote sustainable shareholder returns. In addition to enlisting a world class distributor to expand upon its current U.S. sales figures, the company launched a major initiative focused on partnering with auto dealerships throughout the country. This strategy could provide LBAS with a platform to realize improved financial results moving forward. In recent years, the market for vehicles equipped with real-time traffic GPS has continued to expand. According to a report by IBISWorld, annual market growth was recorded at approximately 34 percent over the past five years.
For prospective investors, LBAS’s recent financial growth within the location-based technology industry could foreshadow improved returns in the years to come. Look for the company to promote continued expansion through a combination of enhanced distribution efforts and product innovation within its target markets.