MTM Technologies (MTMC) Alerts Investors That Yesterday's Press Release Was Unauthorized
MTM Technologies, Inc. (NASDAQ: MTMC) yesterday was mentioned in a press release issued by Mobile Armor, announcing that Mobile Armor’s data security software had been selected by the Department of the Navy to protect its data at rest. MTM is an authorized reseller of certain of Mobile Armor’s data security solutions, but is not otherwise affiliated with Mobile Armor.
The issuance of the Mobile Armor press release was not authorized by senior management of MTM. Mobile Armor’s press release contained a quote by Steve Stringer, MTM’s President and Chief Executive Officer, relating to the potential value of a contract with the Department of the Navy. The contract is dated January 23, 2009, and was entered into by and between MTM and the Department of the Navy, and is for a two year term.
MTM is not in a position at this time to speak to the ultimate value of the contract with the Department of the Navy, either as it relates to Mobile Armor or any value that may be realized by MTM. According to the terms of the contract, the Department of the Navy estimates, but does not guarantee, that the volume of purchases through this agreement will be $3,328,000.
As an authorized reseller of Mobile Armor products, MTM expects to recognize a margin on each product resold by MTM pursuant to the contract, which margin is expected to be only a small percentage of the total revenue received. Accordingly, MTM does not anticipate that this contract will have a material impact on its financial condition or results of operations.
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