Racom Systems Outlines New Business Strategy
Racom Systems, Inc. (NASDAQ:RCOM - news), today announced that it is developing a new business strategy focused on licensing Racom's Radio Frequency (RF) core technologies to the semiconductor and embedded systems markets.
Since its founding in 1991, Racom historically has focused on marketing its advanced ferroelectric memory (FRAM) and RF electromagnetic technologies to the contactless smart card market.
''With smart card industry revenues lagging behind expectations and adverse market conditions persisting, Racom has reviewed its business and concluded that its unique and patented technology offers great potential for the emerging embedded systems marketplace,'' says Art Rancis, president and CEO for Racom Systems. ''Our goal is to repackage the skills and intellectual property Racom excels in and become a leading licensor of wireless, RF-enabled technologies and services for embedded semiconductor-based applications.''
RACOM'S NEW FOCUS AND STRATEGY
Racom is now extending its generation of RF-based products, tools and services to enable embedded systems and microcontrollers to communicate, store and process data without the need for wire connections. Racom's experience in developing proven solutions for a wide range of smart card applications positions the company as a technical leader within the RF field. With more than 3.9 billion embedded controllers produced in 1997, and an increased need for devices of all types to transmit and process data via the Internet through wireless technology, Racom has identified the semiconductor and OEM markets as its primary targets.
''Racom has successfully licensed its RF and FRAM technology to industry leaders Rohm, Fujitsu and Hitachi, and we intend to build upon that success during the coming year,'' explains Racom's Rancis. ''We will continue to service our existing smart card customers and applications, and offer technical services to industry leaders and partners. Regardless, Racom will clearly focus its efforts on becoming a licensor of leading-edge technologies.''
RACOM RESTRUCTURING
Under Rancis' direction during the last four months, Racom has been completely restructured and continues to generate revenues from its existing lines of business while preparing for its major re-launch and marketing introduction early in 1999. For instance, the company recently made smart card system sales to ITT Industries, Inc., Berlin, Germany, and Otis Incorporated, Cernusco, Italy. Racom also announced it has signed a manufacturing and marketing partnership with Iris Technologies, the first such agreement reflective of its new outsourcing and licensing strategy. The company's staff has been reduced with engineering and R&D remaining the primary focus for the company.
''We eliminated staff to reduce overhead and provide the opportunity to re-build the company with experienced personnel to match our new focus,'' said Rancis. ''We plan to start re-staffing during 1999.''
RACOM ADDITIONAL FINANCING
To carry out its new business strategy, Racom has secured a $350,000 loan on its FRAM RF-ID licensing royalties from Ramtron International, one of its principal stockholders. Racom also is pursuing additional financing from the investment community and hopes to announce further funding during first quarter of 1999.
''We're pleased to announce much-needed funding in the form of an advance on existing licensing royalties from Ramtron. This allows us to move forward with our re-structuring plan,'' says Rancis.
About Racom Systems, Inc.
Racom Systems, Inc., headquartered in Denver, Colorado, develops and markets RF-based technologies that automate transactions for electronic commerce, information technology, physical and logical access control, and industrial automation. Racom solutions provide secure, convenient and personalized access to money, information, property and services. For further information about Racom, its technology and products, contact Racom Systems at its Web address, racom.com, by telephone at 303/771-2077, or by fax at 303/771-4708.
This news release contains forward-looking statements. There can be no assurance that actual results will not differ from the Company's expectations. Factors that could cause materially different results include, among others, uncertainties related to the information of the Company's new products and services, the successful completion and integration of acquisitions, and possible negative economic or competitive conditions. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements. |
