Sep 17, 2009 14:47 ETNuMobile, Inc. Acquires Silicon Valley Headquartered Enhance Network Communication, Inc. With Anticipated Contract for $20 Million in Revenue and $8 Million Gross MarginHighlighted Links
www.numobileinc.comCARY, NC--(Marketwire - September 17, 2009) - NuMobile, Inc. (OTCBB: NUBL) today announced executing an agreement acquiring Enhance Network Communication, Inc. NuMobile is building a portfolio of security and software solutions for the mobile computing and smartphone market.
Enhance is headquartered in Cupertino, California and currently reports approximately $1.2 million in profitable annual revenue. Enhance has developed a proprietary large enterprise network security technology designed for managing the unique information management requirements of network delivered government services. School districts make up the majority of Enhance's current customer base. Early product testing is currently underway with a new prospective client. In conjunction with the current product testing, a contract that would result in approximately $20 million in revenue with $8 million in gross margin is anticipated as early as year-end.
NuMobile has acquired Enhance in exchange for $5 million in debt. The debt is payable in two parts. $1 million is due one year from closing. The remaining $4 million is due five years from closing and contingent upon Enhance signing $20 million of new business with $8 million in gross margin. Management anticipates that the debt exchanged for the purchase can be serviced out of cash flow from operations.
NuMobile Information and Email Newsletter
To learn more about NuMobile and to sign up for company email alerts, please visit the corporate website at www.numobileinc.com.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause NuMobile's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.