Stonewall,
I will give you a brief summary on the company's progress and attempt to shed some light on the market. Of course the market performance is only my personal theory.
Firstly, SIGMACOR is completely focused on completing all the engineering for the GAS MICRO, electronic flow measurement product. In October of 1998 SIM adopted a new policy that all technology must be controlled internally. Until this point, the company had relied on several outsourced engineering partners. The GAS MICRO project was 90 days behind schedule at this point. After taking control of all of the deliverables, we immediately reviewed the hardware, firmware and software to determine readiness to market. By early November, we had identified that the hardware was in fact 100% and the design was frozen. Additional development for the firmware and software was required. I am pleased to tell you that our engineering group has now completed all the rework and additional new development and we have successfully completed extensive testing.
The GAS MICRO will be shipped to the existing backlog purchase orders within the next 30 days. I am also pleased to inform you that two of the five planned modem development projects have been completed. The communications products are all scheduled for release in March 1999. Further as a result of our technology and business development agreement with INTERSAT (ISS-ASE) we are preparing to launch the GLOBAL GAS NETWORK "GGN" for proof of concept pilots. The GGN is a revolutionary open-systems data acquisition system to collect and manage all data collected from remote field instruments. This is a very significant opportunity. The GGN will facilitate the offering of numerous value-added data services to the utilities companies by SIGMACOR. The value-added services include (partial listing): billing services (joint-venture with 3rd party - i.e. VISA, ADP, AMEX); enterprise wide data services - redistributing data to all the functional divisions within the utility using internet and web browser technology; customer services - customer access to realtime energy measurement data via internet dialup.
SIGMACOR's recent stock price reflects the additional time required to close an outstanding financing (ammended Prospectus - January 1999) and the delay in launching the GAS MICRO products. Ultimately, all of the concerns of the market will be resolved. We have taken the right steps and are sticking to the business plan. Spring of 1999 will promise to be a very exciting time for our young technology firm.
Thank you for your interest. Please do not hesitate to contact me directly if you have any additional questions. I can be reached at our Calgary offices at 403-735-1988 or toll free 1-888-427-2005 or by email at mdillon@sigmacor.com.
Sincerely,
SIGMACOR, INC.
"Mike K. Dillon"
Vice President and COO |
