August 23, 1999 08:14
FiberChem Announces Florida Sales
LAS VEGAS, Nev.--(BUSINESS WIRE)--Aug. 23, 1999--FiberChem, Inc., through its wholly-owned subsidiary FCI Environmental, Inc. (FCI) announced that several organizations in Florida have placed new orders and commitments for its PetroSense(R) leak detection products. These include the Miami International Airport, Florida Power, Marathon Ashland Petroleum, the City of Lakeland, Transmontaigne Pipeline, and Petroleum Fuels (Jacksonville). This represents revenues of more than $700,000, which should be recognized in the current fiscal quarter. In addition, there are other immediate projects where PetroSense has been specified that represent potential orders of over an additional $500,000 which are expected to close this quarter.
Geoff Hewitt, Chairman and CEO of FiberChem, said, " The Florida Department of Environmental Protection reiterated in May that there would be no extensions or changes in the deadline for compliance with the Aboveground Storage Tank (AST) regulations that were finally promulgated in July of 1998. Compliance is now defined as, at a minimum, having placed orders for approved devices before the compliance date of December 31, 1999. In the last thirty days the climate in Florida has changed from "wait and see" to "time is running out". We are obviously very pleased that the tide appears to have finally turned. The change in the definition of compliance means that we can expect revenues from this market to continue through at least our second fiscal quarter of the year 2000, at which time other states should be expected to come on line.
"There has also been a change in the way we do business in the AST market that will increase our revenue potential from Florida. In May of this year, Endress+Hauser undertook a restructuring of its Whessoe Varec subsidiary with which FCI had a Strategic Alliance for the AST marketplace. The restructured entity will focus on its own manufactured products. As a result FCI took the opportunity to withdraw from the Alliance and to sell direct to the commercial AST market. The US military market remains with the restructured Whessoe Coggins entity."
Tom Collins, President of FCI, said, "We are still focused on the remainder of the 700 or so lined tanks in Florida that represent the highest priority. We intend to move on to the population of large unlined tanks in the near future. The competitive situation has not changed much in the last few months and FCI's PetroSense product line remains the only approved continuous leak detection device certified by Florida for both uncontaminated and previously contaminated sites."
The previously described change in the definition of compliance and the restructuring at Whessoe Varec caused revenues to be pushed out into the current quarter. Management had anticipated in its previous quarterly release possible delays in compliance impacting on revenues, and this, in fact, happened. However, its previously expressed optimism for the second half of 1999 is enhanced by recent events.
FiberChem also reported that during July and August 1999, officers and directors of the Company invested an additional $150,000 in exchange for convertible notes and restricted shares of common stock at market and accepted restricted shares of common stock at market in exchange for deferred, unpaid salaries of approximately $60,000.
This news release includes forward-looking statements that involve risks and uncertainties, including the timely development and acceptance of new products, final promulgation and enforcement of regulations, the impact of competitive products and pricing, the timely funding of customer's projects, customer payments to the Company and the other risks detailed from time to time in the Company's SEC reports.
FiberChem, Inc. develops, manufactures, markets and licenses fiber optic chemical sensors (FOCS(R)) that produce continuous, real-time information on environmental pollutants in the air, water and soil.
CONTACT: Continental Capital & Equity Corporation
Scott A-B Gibson, 407/682-2001
e-mail: scott@insidewallstreet.com
URL: www.insidewallstreet.com
FIBERCHEM INC - FOCS
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