Calgary, Canada, 20 March 2007: NovAtel issued a statement today regarding the announcement on Friday, March 16, 2007 that Topcon had entered into a basic agreement of combination with Sokkia . NovAtel owns 49% of the common shares in Point, a geomatics joint venture with Sokkia. Sokkia owns 51% of Point.
NovAtel sells GPS receivers and antennas to Point, which incorporates these products into surveying systems that are in turn largely sold through the Sokkia distribution channels. In addition, NovAtel provides facilities, computer support and development and logistical support for Point’s Calgary operations.
According to Jon Ladd, President and CEO for NovAtel, “NovAtel and Sokkia have existing contracts in place under which NovAtel develops and supplies GPS technology and products to our joint venture Point and ultimately to Sokkia. We do not expect the proposed combination of Topcon with Sokkia to affect our business relationship with Sokkia, for the foreseeable future. We continue to work with Sokkia management to develop new GNSS technology that will be incorporated into the Point/Sokkia product family.” The agreement under which Point was established is effective until July 2009.
Mr. Hitoshi Ito, President of Sokkia Co., Ltd., stated, “We value our relationship with NovAtel and do not expect there will be a material change to our relationship.” In 2006, the Point/Sokkia relationship accounted for CDN $11.1 million of NovAtel’s CDN $77.6 million in total revenue.