9
Enhancement of our Global Channel Relationships.
We are developing relationships with communication infrastructure
providers in order to expand our sales channels for our carrier software products and services. We have historically leveraged
our strategic relationships with original equipment manufacturers to market our Commercial Segment products to wireless
carriers worldwide. Our partners include AT&T, CenturyLink, Huawei, Alcatel-Lucent, and Level 3.
Monetization of our Patent Portfolio.
We are systematically evaluating our patents together with third parties. In some cases
we are selling patents with license-back rights, and in others entering into arrangements towards licensing of the intellectual
property. We have initiated approximately 30 such projects.
Customers and Markets
Our company’s technology addresses the converging digital, wireless, internet protocol networks operated by governments,
carriers and enterprises.
Our principal government customers are major units of the U.S. Departments of Defense, Homeland Security, and State, and the
General Services Administration. In the aggregate, U.S. federal government entities accounted for 32% of our total 2013 revenue. We
compete for business through federal, state and local procurement processes that typically involve requests for proposal from multiple
bidders. Customers also include international space agencies. Customers for NextGen 9-1-1 are mainly state and local government
entities that manage first responder dispatch, to whom we sell directly and through channels. This business is managed and reported
as part of our Commercial Segment.
Our principal commercial customers are wireless network operators in the United States and around the world, either directly or
through our channel partners. Our wireless carrier customers include Verizon Wireless, MetroPCS, AT&T Mobility, T-Mobile, Sprint,
Telefonica International, Cricket Communications, and Telus. Our carrier customers typically use their brands to market our
applications, which in turn compete with those of other carriers and in some cases downloadable applications for smartphones sold by
third parties such as Apple Inc. Customers for our VoIP E9-1-1 services include Comcast and Level 3. We provide electronic map
technology solutions to telematics vendors including Denso Corporation and XM/Sirius. Our sales efforts target wireless, wireline and
VoIP service providers around the world, as well as new device and hardware customers who may use our technology and software in
their products.
The markets for our products and services are highly competitive. The adoption of industry standards may make it easier for
new market entrants to compete with us. We expect that we will continue to compete primarily on the basis of the functionality,
breadth, time to market, ease of integration, price, and quality of our products and services, as well as our market experience,
reputation, and price. The market and competitive conditions are continually developing. Our software-based deliverables compete
with alternatives provided by other companies. It is difficult to present a meaningful comparison between our competitors and us
because there is a large variation in revenue generated by different customers, different products and services, as well as the different
combinations of products and services offered by our competitors. We cannot, therefore, quantify our relative competitive position.
Our current and potential competitors include:
x
Government Segment.
General Dynamics Corp.; CACI International Inc.; Globecomm Systems, Inc.; Computer
Sciences Corporation; Rockwell Collins, Inc.; KEYW Corporation, and large government systems integrators.
x
Commercial Segment.
Intrado Inc. division of West Corporation; TeleNav, Inc.; Ericsson LM Telephone Co.; Comverse
Technology Inc; Google Inc.; Garmin Ltd.; Ericsson; TomTom Inc.; and Nokia Solutions and Networks.
Many of our existing and potential competitors have substantially greater financial, technical, marketing and distribution
resources than we do. Many of these companies have greater name recognition and more established relationships with their target
customers. Furthermore, these competitors may be able to adopt more aggressive pricing policies and offer customers more attractive
terms than we can. With time and capital, it would be possible for our competitors to replicate our products and services.
The markets for commercial location and other mobile wireless applications for carriers and enterprises are continually
developing. We partner with vendors of precise location technology. Certain of our partners may attempt to compete with our
operating platform by developing their own transmission platform or by purchasing another mobile location platform. The
convergence of wireless technologies and the internet is creating many initiatives to bring data and transaction capabilities to wireless
devices. There is a wide array of potential competitors in this market, including providers of competing location management
platforms, competing enterprise mobility platforms and other competing location-based applications for wireless devices.
