Press Release

@Road Reports Fourth Quarter & 2005 Annual Results

2005 Total Revenues Increase 23% Over 2004

FREMONT, Calif. – February 7, 2006 - @Road®, Inc. (Nasdaq: ARDI), a global provider of Mobile Resource Management (MRM) and intelligent field service automation solutions, today announced its results for the quarter and twelve months ended December 31, 2005.

Total revenues for the fourth quarter of 2005 were $27.3 million, a 37% increase compared to $19.9 million for the fourth quarter of 2004. Hosted revenues for the fourth quarter of 2005 were $21.8 million, and licensed revenues for the fourth quarter of 2005 were $5.5 million.

On a GAAP basis, net income attributable to common stockholders for the fourth quarter of 2005 was $1.0 million, or $0.02 per diluted share, compared to net income of $2.1 million, or $0.04 per diluted share, for the fourth quarter of 2004. Included in the results for the fourth quarter 2005 was a one-time charge of $2.3 million for the impairment of intangible assets in connection with changing the name of the Company’s U.K. subsidiary from Vidus™ Limited to @Road, Ltd., a tax benefit of $1.1 million, intangibles amortization expense of $1.0 million, and depreciation expense of $0.8 million.

For the year ended December 31, 2005, total revenues were $92.9 million, a 23% increase compared to the $75.2 million for the same period last year. Hosted revenues for 2005 were $79.9 million, and licensed revenues for 2005 were $12.9 million. On a GAAP basis, net income attributable to common stockholders for 2005 was $25.9 million, or $0.42 per diluted share, compared to net income of $9.2 million, or $0.16 per diluted share, for 2004. Included in the results for the year ended December 31, 2005 were the operating loss of our U.K. subsidiary from the February 18, 2005, the date of acquisition, as well as a charge for in-process research and development costs of $5.6 million, a benefit from income taxes of $38.5 million, intangibles amortization expense of $3.5 million, depreciation expense of $2.6 million, and a one-time charge for the impairment of intangible assets in connection with changing the name of the Company’s U.K. subsidiary from Vidus Limited to @Road, Ltd of $2.3 million.

“We are pleased to report that some of the increased RFP activity we saw in the marketplace in 2005 turned into customer wins,” said Krish Panu, president and CEO of @Road. “We believe that market momentum continues to build, and we are looking for customer demand for our hosted solutions and licensed software to grow,” commented Mr. Panu.

The Company’s condensed consolidated balance sheet at December 31, 2005 included $103.4 million of cash, cash equivalents and short-term investments. “We believe our balance sheet is strong and that it can help us gain new customers, establish alliances, and expand our global presence,” stated Mr. Panu.

2005 Highlights

New Customers

  • Announced a licensing agreement with TDC, a leading provider of communications solutions in Denmark and Switzerland. Under the terms of the agreement, TDC was granted a license to use the Company’s Taskforce™ 7 Field Service Management solution to help optimize service delivery of approximately 1,900 field engineers in Denmark.
  • Announced that Nabors Industries Ltd., a major worldwide land drilling and well servicing operations company, selected @Road MRM solutions to help streamline and optimize its land drilling operations and support services in North America. In addition, the Company announced that a major home improvement specialty retailer selected @Road MRM solutions to help streamline retail distribution of hardware and construction supplies to both residential and commercial customers. In combination, these customers can represent a deployment of up to 3,200 subscribers to the @Road MRM on-demand software delivery service.
  • Announced six 2005 customer wins in the transportation and distribution industry.
  • Announced 28 customer wins in the waste services vertical market during the first five months of 2005.


  • Acquired Vidus Limited, now @Road, Ltd., a leading provider of dynamic field service automation solutions located in Ipswich, United Kingdom.

New Services

  • Introduced @Road Vehicle Maintenance 2.0 Field Asset Management module. This module provides a number of tools that can help @Road customers optimize their maintenance management program by documenting maintenance history, sending automatic e-mail reminders and notifications when maintenance is due, and providing reports showing maintenance status.
  • Introduced Taskforce MSP(SM), a subscription-based Managed Services Provider (MSP) delivery model for on-demand automated field service delivery. This new delivery offering of Taskforce includes the same features and functionality of the licensed version, but with the additional benefit of being an on-demand MSP solution with a “pay as you go” monthly subscription model.
  • Launched @Road Portico XP(SM) which features the integration of patented @Road LocationSmart(SM) technology with “Toughbook” ruggedized notebook computers from Panasonic Computer Solutions Company. When integrated with @Road Portico XP, Panasonic Toughbook computers can enable the field service technician to perform realtime remote tasks such as opening and updating work orders, logging in job times, viewing customer records, messaging, getting driving directions, placing orders or reviewing upcoming assignments and routes.
  • Announced the global launch of Taskforce 7, the Company’s latest release of its automated and intelligent field service delivery mobile enterprise application. Taskforce 7 also introduces a common Microsoft .NET application architecture, which can be used for mobile field service functions, customer service functions and in the operations and planning functions.


Intellectual Property

  • Announced the issuance of recently awarded patents by the U.S. Patent and Trademark Office, bringing the Company’s patent portfolio to seventeen issued patents. @Road has additional patents and patents pending in jurisdictions throughout the world.



  • @Road and Cingular Wireless announced that they intend to jointly offer MRM solutions designed to improve asset and fleet management for companies with both private and forhire fleets in such industries as transportation, consumer packaged goods and telecommunications.
  • @Road and Capgemini Deutschland announced an alliance for the German speaking market and the integration of Taskforce into SAP for Utilities and SAP Mobile Asset for Utilities (MAU). The companies intend to provide a real-time integrated solution combining consulting, software and expertise from both companies which is designed to help utility organizations meet customer expectations and service level commitments and reduce operational costs.



  • Ranked fourth on the Forbes Midas List for 2005, a ranking of the 25 fastest growing publicly traded technology companies in North America. To be eligible for the list, a company must have had at least a 10 percent sales gain in each of the last five years, $25 million in sales and a positive net income over the last 12 months.
  • Taskforce was named as a finalist for Product of the Year in the Information Management Awards for 2005. The Awards program, now in its tenth year, is one of the premier European awards of excellence and innovation in the management of business information.
  • Received the prestigious Frost & Sullivan 2005 Utility Mobile Solution of the Year Award. Frost & Sullivan recognized @Road with the award in the Utilities Vertical for the @Road Telco, Cable and Utilities Suite MRM solution.
  • For the fourth consecutive year, @Road earned a place on the Deloitte Technology Fast 500 list. In addition to ranking on Deloitte’s Technology Fast 500, @Road ranked 27 on the Silicon Valley Technology Fast 50, which is a ranking of the 50 fastest growing technology companies in Silicon Valley.


Conference Call and Webcast Details

@Road will host a teleconference Tuesday, February 7, commencing at 2:00 p.m. Pacific Time, to discuss the fourth quarter and annual financial results. Participating in the call will be @Road President and CEO Krish Panu and CFO Mike Martini. All interested parties may listen by dialing 888-481-7939 or 617-847-8707, pass code 69494136, or by tuning into the webcast at


About @Road

@Road, Inc. is a leading global provider of solutions designed to automate the management of mobile resources and to optimize the service delivery process for customers across a variety of industries. @Road delivers Mobile Resource Management solutions in three key areas: Field Force Management, Field Service Management and Field Asset Management. By providing realtime Mobile Resource Management infrastructure integrating wireless communications, location-based technologies, transaction processing and the Internet, @Road solutions are designed to provide a secure, scalable, upgradeable, enterprise-class platform, and are offered in
on-demand software delivery, on-premise or hybrid environments that can seamlessly connect mobile workers in the field to real-time corporate data.

The company is headquartered in Fremont, Calif., and has a global presence with offices in North America, Europe and Asia. For more information on @Road solutions, visit


Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Numerous factors, risks and uncertainties affect the Company’s operating results and could cause actual results to differ materially from forecasts and estimates or from any other forward-looking statements made by, or on behalf of, @Road, and there can be no assurance that future results will meet expectations, estimates or projections. These factors, risks and uncertainties include, but are not limited to, @Road historical and future operating results and profitability; the ability of customers to optimize operations as a result of using @Road solutions; the market acceptance of new @Road solutions such as Taskforce MSP, @Road Portico XP and other solutions mentioned in this press
release; the ability of @Road to develop new solutions to meet market demand and deployment commitments; the ability of @Road to integrate Vidus operations successfully; the ability of @Road to gain and support new customers; the ability of @Road and its alliances to market, sell
and support @Road solutions; the size and timing of purchasing and implementation decisions by prospects and customers; competition; the dependence of @Road on mobile data systems technology, wireless networks, network infrastructure and positioning systems owned and
controlled by others; and general economic and political conditions. The Company cautions the reader that the planned appearances of @Road personnel, time and/or manner of the live teleconference, webcast and replays may change for administrative or other reasons outside the
Company’s control. Further information regarding these and other risks is included in the @Road Report on Form 10-K dated March 15, 2005, the @Road Report on Form 10-Q dated November 8, 2005 and in its other filings with the Securities and Exchange Commission.

@Road, the @Road logo, LocationSmart, @Road Portico XP, Taskforce, Taskforce MSP and Vidus are registered trademarks, trademarks or service marks of @Road, Inc. or its subsidiaries. All other product names and services are the property of their respective owners.

@Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December 31, 2005 December 31, 2004  
Current Assets:
Cash, cash equivalents, and short-term investments
$       103,416
 $    117,716
Accounts receivable, net
Deferred tax assets 1,448 --
Deferred product costs and other current assets
     Total current assets
Property and equipment, net 6,195 3,668
Deferred tax assets 40,794 -
Goodwill 21,056 -
Intangible assets, net 27,333 -
Deferred product cost and other asssets 17,395 6,627
     Total assets  $ --------254,952  $ --------152,210  
============ ============  
Current liabilities:
Accounts payable and accrued liabilities $ --------15,404
$ --------11,195
Deferred revenue and customer deposits 15,495 11,347
     Total current liabilities 30,899 22,542
Deferred revenue 17,333 4,830
Other long term liabilities 461 2
     Total liabilities
Redeemable preferred stock 8,184 -
Stockholders' equity:
Common Stock 278,818 232,016
Notes receivable from stockholders (7) -
Accumulated other comprehensive loss (78) (179)
Accumulated deficit (80,658) (107,001)
     Total stockholders' equity 198,075 124,836
        Total liabilities, redeemable preferred stock and stockholders' equity  $ --------254,952  $ --------152,210
============ ============  


@Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)

Three months ended
Twelve months ended
Dec 31,
Sep 30,
Dec 31,
Dec 31,
Dec 31,


$   21,805
$    18,965
$    19,909
$      79,945 $     75,234
12,911 -
      Total revenues

Costs and expenses:

  Cost of hosted revenue (excluding intangible amortization included below) 10,668 10,238 9,206 39,657 34,825
  Cost of licensed revenue (excluding intangible amortization included below) 1,295 1,481 - 4,949 -
  Intangibles amortization
3,487 28
  In-process research and development - - - 5,640 -
  Impairment of tangible assets 2,270 - - 2,270 -
  Sales and marketing
21,398 12,336
  Research and development
13,024 6,192
  General and administrative
17,506 12,022
  Terminated acquisition costs
- 2,138
     Total costs and expenses
107,931 67,541
(Loss) income from operations (903) (1,467) 1,583 (15,075) 7,693
Other income, net
2,936 1,528
Net (loss) income before tax
(12,139) 9,221
Benefit from income taxes 1,095 34,192 - 38,482 -
Net income (loss) 1,135 33,523 2,115 26,343 9,221
Preferred stock dividends
(436) -
Net income (loss) attributable to common stockholders $ -------1,004     $   -33,399  $ -   2,115 $    25,907  $ --------9,221
========= =========
Net income (loss) per share:
$ -------0.02
$ -------0.55
$ -------0.04
 $ ----0.43 $ --------0.17
========= ========= ========= ========= =========
  $ -------0.02
$  ------0.54
  $ ------0.04
$    0.42
$ --------0.16
========= ========= ========= ========= =========
Shares used in calculating net income (loss) per share:
59,928 54,296
========= ========= ========= ========= =========
    Diluted 63,121 62,133 57,124 61,353 57,435
========= =========



Media Contact:

Michael Martini
Chief Financial Officer

Bob Stern
@Road Media Relations
T: (510) 870-1360
M: (925) 457-1673
F: (510) 870-1910

Investor Relations Contact:

David J. Lebedeff
Vice President Investor Relations


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