JERSEY CITY, N.J., July 26, 2017 (GLOBE NEWSWIRE) -- SITO Mobile, Ltd. (NASDAQ: SITO ), a leading mobile engagement platform (“SITO” or the “Company”), today issued a letter to shareholders.
To Our Shareholders:
SITO Mobile is an impressive technology company. Forty-five days ago, I joined SITO Mobile to scale its business model and create new success and growth. This type of transformation is not new terrain for me. At Oracle Applications, I built its applications department from $0 to over a billion dollars in four years and won seventy-eight multi-million dollar transactions in a row. During my five years at Oracle, its market capitalization grew from $2.57 billion to $22.56 billion. To further develop my expertise in innovative technology companies, I then moved to Ariba, first as the Vice President of Sales and Operations and then as President of South and Central America, Spain and Portugal. At Ariba, I managed over 500 employees and grew sales from $0 to over $200 million in three years. During the course of those three years, Ariba’s market capitalization soared from $0 to over $40 billion, and its IPO was one of the largest in NASDAQ’s history. My passion and my focus are to create and build successful technology companies.
I am very fortunate to be able to combine my thirty years of leadership and operational skills with those of our Chairman, Brent Rosenthal. Brent has a stellar track record in transforming distressed media and data companies and creating substantial shareholder value, and has been publicly recognized for his contributions to this industry. In 2003, Brent authored an internal W.R. Huff white paper about the problems in media measurement, and subsequently identified Rentrak as a platform company to capitalize on this trend. He spearheaded Huff’s investment in Rentrak, led the overhaul of its management team and board of directors, and worked closely with the new management team to reinvent the company. Brent joined Rentrak’s board in 2008 and has served as its non-executive chairman since 2011. Following the merger of Rentrak with comScore, Brent joined comScore’s board as chairman of the audit committee. Brent also serves as a special adviser to the board of Park City Group. From 2006 to 2012, he served as a strategic adviser to Virgin Media’s directors and executive management, providing turnaround and crisis-management services, as well as operational and financial analysis and recommendations. From 2007 to 2010, Brent advised Time Warner Cable’s executive management. In 2009, Multichannel News named Brent to its annual “40 under 40” list of influential executives. Brent also financed investments in Lamar Advertising and American Idol. We look forward to leveraging Brent’s vast experience as we implement our new strategic plan at SITO Mobile.
Our enthusiastic team at SITO Mobile is one of the reasons I am so excited to be part of this company. I am proud of all they have accomplished for our customers and shareholders. Each person is a dedicated contributor, and it is this organization-wide drive, coupled with a remarkable technology infrastructure, that fueled my desire to join SITO Mobile as CEO.
As a technology company rooted in location and mobile data, I firmly believe we are well-positioned to develop a platform that reinvents the norm for delivering media and insight to brands and agencies alike. We will aggressively market SITO Mobile to Fortune 500 Brands and leading agencies, and reposition our teams to focus on larger, multi-million dollar transactions. I am confident that we will realize this vision and start the next chapter of the SITO Mobile story in a highly differentiated manner not easily achievable by our competitors.
SITO Mobile is intensely focused on longevity. We believe that an essential measurement of our success is the shareholder value that we create over the long term. The choices made by myself, as the CEO, and by our management team will consistently reflect this focus. We are building an indispensable data and insights platform, while expanding and leveraging our client base. It is with great excitement that I announce the closure of SITO Mobile’s largest sales transaction in its history to Pure Flix Entertainment, a producer, distributer, acquirer and marketer of Christian and family-friendly films. This transaction is well over $2 million dollars and is the first of many multi-million dollar transactions we will be announcing in the near future.
Transparency is a main pillar of SITO Mobile’s value system. As we embark on this journey of success together, we want every opportunity to communicate with our shareholders. We also invite you to reach out directly with any comments or questions. Our shareholder landscape is not tranquil. Certain investors currently hold an approximately 10% equity stake, as well as the remaining company debt. These investors hope to derail our strategy and vision by engaging in negative external communication. This course of action is disruptive, self-serving and risks unwinding our progress and new visions. Despite this challenge, we are working diligently to reorient our organization towards a common vision.
It is a pivotal time for SITO Mobile. We ask for your support in allowing the team to execute its vision and we request that you not give in to the discontented noise in our shareholder base. We have already undertaken numerous initiatives and our team is energized, engaged and focused on execution. We are quickly developing positive momentum, and expect our new plan to swiftly create significant and sustainable value for all SITO Mobile shareholders. Our management team has a proven track record of delivering success and growth, and we ask you to allow us to do so for SITO Mobile. Again, we encourage you to engage in direct and open dialogue with us. We are excited to talk about the future with you.
The remainder of 2017 will be exciting and revolutionary. We are so grateful to our team for its hard work, to our customers for their business and trust, and to the vast majority of our shareholders for their steadfast support. We are lucky to be part of SITO Mobile. Let’s allow great things to happen.
I deeply and sincerely thank you for your continued interest and investment in SITO Mobile and look forward to creating value for all shareholders.
Here’s to our future,
Thomas J. Pallack Chief Executive Officer SITO Mobile
About SITO Mobile Ltd. SITO Mobile provides a mobile engagement platform that enables brands to increase awareness, loyalty, and ultimately sales. For more information, visit www.sitomobile.com .
Cautionary Statement Regarding Certain Forward-Looking Information This press release contains forward-looking statements. These statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include statements concerning the following: SITO’s plans and initiatives, campaign volume and average campaign dollars, our guidance and/or expectations for future quarters, our possible or assumed future results of operations; our business strategies; our ability to attract and retain customers; our ability to sell additional products and services to customers; our competitive position; our industry environment; our potential growth opportunities; and risks, disruption, costs and uncertainty caused by or related to the actions of activist shareholders, including that if individuals are elected to our Board with a specific agenda or if control of our Board was to abruptly change, it may adversely affect our ability to effectively implement our business strategy and create value for our shareholders and perceived uncertainties as to our future direction as a result of potential changes to the composition of our Board may lead to the perception of a change in the direction of our business, instability or a lack of continuity which may be exploited by our competitors, cause concern to our current or potential customers, and may result in the loss of potential business opportunities and make it more difficult to attract and retain qualified personnel and business partners. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under “Risk Factors” in our Annual Report on Form 10-K and the reports we file with the SEC. Actual events or results may vary significantly from those implied or projected by the forward-looking statements due to these risk factors. No forward-looking statement is a guarantee of future performance. You should read our Annual Report on Form 10-K and the documents that we reference in our Annual Report on Form 10-K and have filed as exhibits thereto with the Securities and Exchange Commission, or the SEC, with the understanding that our actual future results and circumstances may be materially different from what we expect. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Contacts: Investor Relations: Rob Fink Hayden IR rob@haydenir.com Media Relations: Yasmeen Coning Silicon Alley Media yasmeen.coming@sitomobile.com
