WebTech Wireless Inc. (TSX:WEW) is working with Volkswagen Brazil to expand its market share in telematics and anti-theft applications in South America's largest country.
The Burnaby-based firm will be meeting with Volkswagen Brazil's insurance companies to allow WebTech to service the anti-theft devices and for buyers of new volkswagens in Brazil.
If demand grows for WebTech's services, Volkswagen might incorporate WebTech's locators on its vehicle assembly lines in Brazil.
The meetings are part of the company's revised strategy in Brazil after its previous master distributor, Crown Telecom, defaulted on its payments for WebTech's GPS-based vehicle units.
WebTech had signed a 20,000 unit deal with Crown Telecom in January 2006 and had received a 490,000-unit order in January 2007. The deals played an increasing role in the WebTech's fortunes, with almost two-thirds of its revenue in the second quarter ending January 31, 2007, coming from South American sales, mainly in Brazil. That amount grew from less than one-third in the same quarter in 2006.
WebTech's revenue had more than doubled to $8.5 million in its second quarter from $4 million in the same quarter in 2006. Buoyed by Crown Telecom's sales, WebTech's net quarterly income increased to more than $1 million compared with $334,000 in 2006's second quarter.
WebTech's share price range during the past week: between $2.65 and $3.12; 52-week high: $7.39; 52-week low: $1.04.