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09/23/06
by Christopher Boyce
(reprinted from the St. Louis Post-Dispatch (MO), SEP 23, 2007)
Telecom giant will sell phone packages with Agilis Systems software.
A small Creve Coeur software developer has expanded its relationship with telecommunications giant Sprint Nextel Corp. in a deal that should make the company a lot larger. Agilis Systems Inc. signed a deal in February with Sprint in which the company, based in Reston, Va., will sell phone packages to businesses featuring Agilis' software.
Under the initial arrangement, Sprint had been offering Agilis' tracking systems on phones enabled with global positioning systems. With the new two-year deal, Sprint will sell not only the tracking software, but applications that detail optimal delivery routes to cut down on mileage and alert customers about estimated delivery times.
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Sales of products by Sprint account for about 80 percent of Agilis' overall revenue, double the level in April, said Dan Huber, the company's president. He estimated the company's revenue should reach $25 million by 2010.
Before the deal, fewer than 20 percent of the company's customers were outside St. Louis. Schnuck Markets Inc. and Laclede Gas Co. are among local companies using Agilis' software, which tracks deliveries and service appointments. Huber anticipates non-local customers will grow to 90 percent of his business.
Sprint is attempting to increase its business clientele, which tends to spend more than individual customers for applications such as tracking and Internet-enabled phones. Businesses also tend to stay with one carrier for a longer period of time than individuals and are getting comfortable with using cellular phones for multiple business applications. Sprint saw revenue from such data services grow 77 percent in the first quarter this year from a year ago.
"They're seeing a huge growth pattern," Huber said of Sprint's sales of business applications on cellular phones. "What we're trying to do is run with one of the market leaders on this and ride that wave."
Sprint spokesperson Emmy Anderson said Agilis was chosen for its ability to determine and meet customer needs. "We expect them to be a very strong performer in our portfolio of wireless data solutions for business," Anderson said.
Reprinted for web use with permission from the St. Louis Post-Dispatch,
© 2007 all rights reserved.
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