This is a draft of the first part of the conference call - Robert Kubbernus' overview. Sorry for the format, but again, this is the draft version.
IN 1998 JAWS TECHNOLOGIES INC. LAUNCHED ITS FIRST PRODUCT. THIS PRODUCT BEING THE WORLD'S STRONGEST ENCRYPTION ALGORITHM.
WE INVITED THE WORLD TO ATTEMPT TO BREAK OUR CODE AND WIN 5 MILLION DOLLARS IF THEY COULD PROVE THEMSELVES SUCCESSFUL. OVER 700 PARTICIPANTS FROM AROUND THE WORLD, INCLUDING THE HEAVY WEIGHTS, ATTEMPTED. WE GOT TO KEPT OUR 5 MILLION AND FROM THERE WE SET A COURSE TO ACHIEVE THE FOLLOWING:
1) BUILD A SUITE OF SECURITY PRODUCTS TO TAKE TO THE MARKET PLACE
2) ESTABLISH A WORLD CLASS INFORMATION SECURITY SERVICES PRACTICE
3) DEVELOP A WORLD WIDE SALES ORGANIZATION CAPABLE OF SERVICING THE FORTUNE 1000 WITH BOTH PRODUCTS & SERVICES
WE ARE GUIDED BY FOUR PRINCIPALS:
1) TO MEET OR EXCEED CUSTOMER'S EXCEPTIONS
2) TO MEET OR EXCEED OUR PARTNER'S EXPECTATIONS
3) TO MEET OR EXCEED OUR INVESTOR'S EXPECTATIONS
4) TO MEET OR EXCEED OUR EMPLOYEE'S EXPECTATIONS
OUR STRATEGY FOR ACHIEVING THIS IS:
“JAWS TECHNOLOGIES WILL RAPIDLY GROW ITS BUSINESS BY CLEARLY UNDERSTANDING OUR MARKET VERTICALS AND THEN EXPLOITING EACH ONE TO OUR FULLEST ADVANTAGE.”.
THESE VERTICALS ARE:
1) FINANCIAL SERVICES - INCLUDING INSURANCE
2) GOVERNMENT
3) HEALTHCARE
4) APPLICATION SERVICE PROVIDERS
5) I BUSINESS
ALL 5 VERTICALS ARE COMPLEMENTED BY OUR RESEARCH & DEVELOPMENT TEAM BRINGING THE BEST OF BREED SOLUTIONS FORWARD TO OUR CLIENTS.
EACH OF THESE VERTICALS OR MARKETS HAVE A VERY STRONG NEED FOR PRIVACY & SECURITY. THEIR FUTURE PROSPERITY IS DIRECTLY INFLUENCED OR DEPENDENT ON CLIENT CONFIDENTIALITY. WITHOUT IT…THEY WILL FAIL. AS THEY MOVE THEIR OWN BUSINESS' INTO AN I BUSINESS FORMAT, CUSTOMER ADOPTION AND CONFIDENCE IS DIRECTLY ASSOCIATED WITH SECURITY. THE LOSS OF PRIVACY DESTROYS BRAND VALUE. THE AMOUNT OF PAIN FOR THESE CEO'S AND THEIR BOARD OF DIRECTORS WILL BE IMMENSE. NOT ONLY ARE OUR SERVICES TAILORED TO THESE VERTICALS SO ARE OUR PRODUCTS. HOWEVER WE HAVE RECOGNIZED THAT THE NEED FOR WHOLESALE SECURITY COMMUNICATION TOOLS TO MEET THE NEEDS OF EVERY COMPUTER USER. OUR XMAIL EMAIL SECURITY PRODUCT LAUNCHED TWO MONTHS AGO MEETS THIS MARKET HEAD ON. OUR CUSTOMER MIX TODAY CONSISTS OF:
1) LAW FIRMS
2) SMALL GOVERNMENT ORGANIZATIONS AT THE STATE & PROVINCIAL LEVEL
3) HEALTH CARE PROVIDERS
4) OIL AND GAS COMPANIES
5) IT OUTSOURCING FIRMS
6) SOFTWARE & HARDWARE DEVELOPERS
MANY OF WHICH WE HAVE AGREEMENTS WITH TO NOT RELEASE THEIR NAMES DUE TO CONFIDENTIALITY. HOWEVER, THOSE THAT ALLOW IT WE WILL PRESS RELEASE SUCH SIGNIFICANT CONTRACTS.
CORPORATE DEVELOPMENT
WE HAVE MADE IT OUR MANDATE TO MAKE THE IT WORLD OUR PARTNERS. WE HAVE SIGNED SIGNIFICANT ALLIANCES AND CONTINUE TO DO SO. ONE SIGNIFICANT CHANNEL FOR THIS EFFORT IS OUR LEADERSHIP ROLL AS A FOUNDER & BOARD MEMBER OF THE ASP CONSORTIUM. THE CONSORTIUM TODAY HAS OVER 150 MEMBERS WORLDWIDE & CONTINUE TO GROW AT AN UNPRECEDENTED RATE.
JAWS IS THE PERMANENT SECURITY PARTNER WITHIN THE ORGANIZATION. YOU CAN SEE THE ASP MEMBERSHIP AND OUR CHARTER AT WWW.ASPINDUSTRY.ORG. DON'T BE SURPRISED WHEN YOU SEE THE DEPTH OF THIS ASSOCIATION.
IR/PR
WE RECOGNIZE THAT OUR STORY, AS INCREDIBLE AS IT IS, NEEDED MORE HELP WITH OUR INVESTOR COMMUNICATIONS AND PUBLIC RELATIONS EFFORTS. WE HAVE RETAINED THE SERVICES OF THE BRIDGE TECHNOLOGY GROUP LOCATED IN NEW YORK WHO WILL MANAGE THE U.S. COMMUNICATION PROCESS AND GPC COMMUNICATIONS OUT OF TORONTO WHO WILL MANAGE THE CANADIAN COMMUNICATION PROCESS. BOTH COMPANIES PLAN TO AGGRESSIVELY MOVE FORWARD TO PUT JAWS WHERE IT NEEDS TO BE AS SOON AS POSSIBLE. THIS INCLUDES A RIGOROUS MARKETING CAMPAIGN IN CAPITAL MARKETS INCLUDING ANALYST REPORTS, SPEAKING ENGAGEMENTS & INSTITUTIONAL TOURS. A SIMILAR PROGRAM IS BEING LAUNCHED IN EUROPE WITH THE FIRST TOUR STARTING IN MID OCTOBER. THE PROMOTION HAS STARTED THIS WEEK IN GERMANY AND WILL CONTINUE THROUGHOUT THIS YEAR AND NEXT. I'M SURE WE CAN EXPECT SIGNIFICANT SUPPORT FROM EUROPE BASED ON OUR PARTICULAR MARKET (IT SECURITY). THE DESIRE FOR HIGH TECH STORIES AND THEIR LONG HOLD INVESTMENT MENTALITY. AS WELL, A PUBLIC RELATIONS AND MARKETING FIRM BY THE NAME OF BROUDER WORLDWIDE OUT OF BOSTON MASSACHUESETS WERE RETAINED LAST MONTH. THIS COMPANY DOMINATES ITS PR & MARKETING FIRMS IN THE IT SECTOR. A FULL PROGRAM OF SPEAKING ENGAGEMENTS, TRADE SHOWS, COLLATERAL MATERIALS AND RELATIONSHIP CAMPAIGNS ARE BEING CREATED . THE CAMPAIGN BEGINS IN EARLY OCTOBER.
ACQUISITION STRATEGY
TODAY WE CURRENTLY HAVE 3 ACCEPTED LETTERS OF INTENT FOR THE PURCHASE OF COMPANIES IN THE SECURITY FIELD. THESE COMPANIES HAVE BEEN TARGETED TO FILL A SPECIFIC MARKET OR VERTICAL NICHE, I.E. FINANCIAL SERVICES. THEY HAVE REVENUE AND THEIR OWN PRODUCTS THAT WILL EXPAND OUR SOLUTION BASE. WE ANTICIPATE CLOSING TWO OUT OF THE THREE THIS YEAR. WE WILL CONTINUE TO LOOK FOR THESE SPECIAL OPPORTUNITIES TO FILL ANY VOIDS WE SEE IN OUR COMPANY THROUGHOUT THE YEAR 2000. AS THE LOI'S TURN INTO DEFINITIVE AGREEMENTS WE WILL ANNOUNCE THE SPECIFIC DETAILS. THE FIRST ONE MAY BE AS EARLY AS NEXT WEEK.
CURRENT SALES
AS A DEVELOPING COMPANY WE VIRTUALLY BEGAN SELLING PRODUCTS AND SERVICES 8 MONTHS AGO. OUR LAST MONTH'S BILLINGS REACHED $458,000 DOLLARS AND WE BELIEVE WE ARE ON TRACK FOR A 3 MILLION 12 MONTHS ENDING DECEMBER 31, 1999. WE BASICALLY CONSIDER THIS TO BE OUR FIRST ALTHOUGH SHORT COMMERCIAL YEAR.
CORPORATE
WE HAVE HAD DIFFICULTY TO DATE WITH OUR REGISTRATION PROCESS. BY ATTEMPTING TO REGISTER SECURITIES UNDER AN SB2 APPLICATION. THE SEC HAS DETERMINED THAT THIS IS AN UNDERWRITING. WE HAVE ARRANGED FOR AN UNDERWRITER TO TAKE OVER THE PROCESS AND COMPLETE THE REGISTRATION. HOWEVER, UNTIL THIS IS COMPLETE WE HAVE CHANGED OUR APPLICATION TO A 10 SB REGISTRATION EXCLUSIVE OF ANY FINANCINGS. THIS WILL ENSURE THAT WE BECOME A FULLY REPORTING ISSUER OVER THE NEXT SHORT PERIOD. IT SHOULD BE NOTED THAT JAWS HAS UNTIL JANUARY 2000 TO COMPLETE THIS TASK AND IT IS OUR BELIEF THAT THIS WILL BE ACHIEVED OVER THE NEXT FEW SHORT MONTHS. OUR WORKING CAPITAL IS SUFFICIENT TO MAINTAIN OUR CURRENT GROWTH PLANS FOR THE NEXT 6 MONTHS. THIS DOES NOT INCLUDE ANY PROVISIONS FOR THE INCREASE IN REVENUE THAT WE ARE NOW EXPERENCING. OUR INTENTIONS ARE TO APPROACH THE MARKET WITH A ROUND OF FINANICNG THIS FALL. BASED ON NUMBEROUS REQUESTS BY MID LEVEL INSTITUTIONS WE BELIEVE THE TIMING IS RIGHT. THIS OF COURSE IS ALSO BASED ON CERTAIN ACQUISITION ASSUMPTIONS. A NUMBER OF EVENTS AND INITIATIVES ARE WELL ON THEIR WAY TO COMPLETION. THESE ARE:
1) NUMEROUS DIRECT PARTNERSHIPS FOR JOINT BUSINESS AND PRODUCT DEVELOPMENT WITH ASP PARTNERS.
2) CLOSING OF A 500,000 SEAT XMAIL SALE TO A HOT MAIL CONTENDER
3) NUMEROUS OTHER XMAIL PROPOSALS ARE BEING EVALUATED. THIS IS ABOVE & BEYOND OUR CURRENT STANDARD ESTIMATED TAKE UP RATE OF ABOUT 50,000 SEATS PER MONTH.
4) NEGOTIATION AND PRODUCT DEVELOPMENTS CONTINUE WITH CITRIX AND CITRIX PARTNERS. THIS INCLUDES TAKING OVER A SPECIFIC SECURITY PRODUCT OWNED BY CITRIX FOR REDEPLOYMENT TO THE MARKET AS A JAWS PRODUCT. OUR RELATIONSHIP CONTINUES TO GROW STRONGER EACH DAY WITH CITRIX.
5) INITIAL DISCUSSIONS CONTINUE IN EUROPE WITH SYMBIAN AND IS SLATED FOR MORE SIGNIFICANT WORK IN LATE OCTOBER. DUE TO OUR PLATINUM DEVELOPER STATUS WITH 3 COMM (A PARTNER IN SYMBIAN) WE ARE ENCOURAGED BY OUR ADVANCES TO DATE.
6) AGAIN OUR PLATINUM STATUS AND SECURITY PRODUCTS FOR THE PALM DEVICES HAS CREATED A SIGNIFICANT OPPORTUNITY WITH SYMBOL TECHNOLOGY WHO USES THE PALM PLATFORM FOR MEDICAL INDUSTRY DEVICES.
7) WE ARE CURRENTLY IN LOI STAGE WITH AN ASIAN RESELLER GROUP WHO WISHES TO DEPLOY OUR PRODUCTS AND SERVICES THROUGHOUT ASIA.
8) WE SHOULD SEE THE RELEASE OF AN ANALYST REPORT INTO THE U.S. CAPITAL MARKETS WITHIN THE NEXT 10 DAYS.
9) OUR STRONG TIES AND RELATIONSHIPS IN THE FLORIDA MARKET SHOULD RESULT IN SOME SIGNIFICANT CONTRACTS AND INITIATIVES OVER THE NEXT 60 TO 90 DAYS.
10) RECENT PRESS COVERAGE DISCLOSED OUR ABILITIES TO ENTER ANY SYSTEM INCLUDING THAT OF THE MAJOR NEWSPAPER WHICH RETAINED US TO TEST THEIR PERSONNEL SECURITY OF ONE OF THEIR REPORTERS. FOUR HOURS OF WORK BY ONE OF OUR CONSULTANTS RESULTED IN COMPLETE CONTROL OF THEIR BANK ACCOUNT. AS A RESULT THE BANK HAS ENTERED INTO SERIOUS DISCUSSIONS WITH OUR FIRM AND WE LOOK FORWARD TO MORE WORK IN THIS SECTOR.
THIS CONCLUDES OUR COMMENTARY, HOWEVER, I WOULD LIKE TO SAY THAT THE NEXT 60 DAYS FOR JAWS TECHNOLOGIES SHOULD BE FILLED WITH MUCH OF THIS NEWS IN THE MARKET AND A SUBSTANTIAL INCREASE IN CAPITAL MARKET ATTENTION BASED ON OUR PLAN.
Barrie Einarson
Director Investor Relations
JAWS Technologies Inc.
Call Toll Free 1-888-301-5297
1-403-508-5055
Hours: 8:00AM - 5:PM MST
Contact me @ mailto:invrel@jawstech.com
Website: jawstech.com
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