I.D. Systems Signs Agreement with Global Airline, Potential Contract Value Exceeds $7 Million
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I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless M2M asset management solutions, has executed a master license agreement and initial statement of work with a leading global airline to implement I.D. Systems' AvRamp™Â wireless vehicle management system (VMS) on aircraft ground support equipment (GSE) and other airport vehicles. The agreement, which does not have a fixed term, encompasses potential system deployments on more than 3,000 vehicles across as many as seven major U.S. airports. The maximum value of the agreement, if the airline elects to place purchase orders for all proposed system elements, exceeds $7 million.
The initial statement of work under the agreement, valued at more than $500,000, calls for I.D. Systems to deploy its AvRamp VMS at one U.S. airport. Product shipments under this initial statement of work are expected to commence before the end of 2014.
"This is the second major airline to deploy our AvRamp system, which we believe makes I.D. Systems the leading provider of wireless VMS technology in the U.S. aviation market," said Kenneth Ehrman, I.D. Systems' chairman and CEO. "The aviation market represents a largely untapped growth opportunity for us, with hundreds of thousands of vehicles used in airport operations around the world. We are confident we will execute on this new contract with the best practices we are implementing under our 'IDSY 2.0' initiative, and we should be in a strong position to capitalize on this multi-million dollar opportunity.
"The award of this contract follows a successful pilot deployment earlier this year, where we were able to demonstrate the compelling value of our solution. We are providing a cloud-hosted version of AvRamp for the airline, reflecting the rapidly growing trend of implementing VMS as a service. This helps reduce the customer's upfront capital investment, decrease the customer's IT workload, and make customer support easier and more effective."
AvRamp is the airport version of I.D. Systems' patented wireless VMS technology. The system's ability to help control who drives what vehicle and encourage good driving habits can significantly enhance safety in an airport's area of operations. AvRamp can also decrease GSE fleet costs by reducing fuel usage and improving maintenance management, and improve operational efficiency through GPS location tracking, two-way text messaging, and asset utilization analyses. For more information about the AvRamp system, please visit www.id-systems.com/avramp.
