Dear Johathan,
You are right in warning investors about our upcomming quarter being flat. However, Mr. Chew's November 21, 1996 Research Update shows ACRT's 2nd quarter, ending December 30 for fiscal 1997, will have a 21% overall increase in revenues of $9,214,535 vs. $7,578,034 with the TAD portion of revenues increasing from $3,046,421 to $4,569,632 or more than a 50% increase. And don't you suppose that the reason the earnings are flat may be due to increased costs associated with enhanced marketing efforts? It is important to note that Mr. Chew estimates our 3rd & 4th quarter to be $.08 and $.09 respectively. Could that be a result of increased costs in generating market awareness of the TAD's? Just to keep the playing field level, management is not interested in a slower quarter here and there. They are long term players concentrating on developing sales and keeping costs under control. An investor in ACRT should not be short term oriented. Any other thinking would not be compatible. Mr. Chew points out in his report, "the market for TADs is nationwide and huge--$80 billion potential is a conservative estimate." While TAD revenues are rapidly growing, most of the concentration has primarily been in the New York and surrounding area. Current revenues only reflect this portion of a nationwide market--which will take time to exploit. Mr. Chew's report also points out that management does not have prior experience managing a company with rapid growth much larger in size than the $25 million in revenues they reported for fiscal 1996. But from my viewpoint, I believe that a shareholder couldn't have a better CEO representing their investment. But, Jonathan, I think you also believe that, too...
Mitch Menik
Investor Relations
CC: Dorothy |
