Ultrack Systems Inc. (OTCMKTS: MJLB) is a fleet management GPS monitoring and tracking solution provider. The company develops, implements, and distributes tracking and electronic monitoring systems in transportation, leasing, disposal, and construction. Its platform offers live tracking, alerts, and reports on a web-based system. In addition, the company will launch a new ELD solution this year in collaboration with major corporations. The stock dropped 1.67% in the previous session with 637,087 shares exchanging hands, which is below the daily average volume of 1.343 million shares.
The company announced the reprogramming of its DriveLineELD product as per the updated requirements and standards. In a release dated April 29, 2021, the company said that FP innovations had advised that they needed a reformed testing protocol to receive certification. Interestingly they included the OBDII testing protocol in the procedure, and according to the January 2021 Government mandate, the testing protocol wasn’t a necessity.
Michael Marsbergen, Ultrack CEO, said, “Reprogramming our DriveLineELD chip and performing 400 successful tests has been an unanticipated challenge. Making sure we pass on each test, fixing any related bugs that have popped up and completing changes along the way has been a time-consuming process, but I’m pleased that we are near completion. All of us here at Ultrack are extremely confident that we will obtain successful certification and will announce the availability of this and other industry disruptive products in the near future.”
Ultrack Systems Inc. (OTCMKTS: MJLB) has provided an update to its investors regarding DriveLineELD approval. The company has made investors aware of FP Innovations’ handling of ELD certification. The company recently contacted FP Innovations and was told that they should expect an ELD approval delay. Interestingly the delay isn’t exclusive to Ultrack since it is because of reformed testing protocols outside the J1708.J1939 mandate. As a result, the company is making software and hardware changes on DrivelineELD for approval. The company is optimistic ELD will receive the required certification, and once approved, the product will appear at an official government link.
Marsbergen said, “This slight speed-bump hasn’t lowered our morale or our resolve to make the DriveLineELD the premier ELD product throughout North America. We are living in unprecedented times and there are occasions when issues arise that are completely out of our control. We are doing everything we possibly can to ensure approval of the DriveLineELD and are simply waiting for others to do their part.”
Another company in the same sector is Element Fleet Management (OTCMKTS: ELEEF). Element Fleet is a pure-play automotive fleet management company that offers various solutions and services across North America, New Zealand, and Australia. The company’s adjusted operating income in Q1 2021 was $137 million, a 6.2% YoY increase. The growth in adjusted operating income was due to growth in net financing revenue across all regions. In addition, servicing income increased in Mexico and ANZ plus a 3.3% QoQ decline in adjusted operating expenses. As a result, the company exceeds its net revenue growth showing its highly scalable platform.
Jay Forbes, President and CEO Element, said, “We are encouraged by what we saw this first quarter in terms of business performance post-Transformation. We grew year-over-year net revenues – fueled by 35% and 22% growth in ANZ and Mexico, respectively – and used our scalable operating platform to convert this revenue growth into even more significant adjusted operating income growth.
Element Fleet Management (OTCMKTS: ELEEF) recently announced its Q4 2020 financial results for the quarter ended December 31, 2020, in which it generated an operating income of $132.1 million. With revenue growth exceeding expense growth Element Fleet Management grew adjusted operating margin by 53.4%. During Q4 2020, net income was $78.4M or $0.16 per share, which was a 10.7% QoQ increase.
Stoneridge Inc. (NYSE: SRI) in the same sector, designs and manufactures electronic and electrical components, systems, and modules for commercial, automotive, motorcycle, agricultural, and off-highway vehicle markets. The company posted sales of around $193.8 million in Q1 2021 and EPS of $0.00. Stoneridge reported adjusted sales of $192.8 million and Adjusted earnings of $0.06 per share. Because of Q1 outperformance, the company is maintaining its full-year guidance, and as a result of headwinds, the company has reduced adjusted EPS to a midpoint of $0.55.
CEO and President Stonebridge Jon DeGaynor said, “In the first quarter we delivered strong financial performance and exceeded our previously outlined expectations from both a revenue and earnings perspective. Most importantly, we achieved our operating objectives with strong operational efficiency and reduced controllable costs.”