SmartStockAdvisor.com Report: Follow-up to Press Release on Friday, June 25
Some questions have arisen from shareholders both before and
after Friday's press release. We thought this would be a good
opportunity to recap what has occurred over the last few months.
Sometimes by reviewing we can more easily see how far we have come.
Over the past several months, Microphonics has made great strides with limited resources. This has been their forte, as they continue to demonstrate. Most significantly, sales are growing at a furious pace, despite a small in-house sales team. They've done this by wisely utilizing word-of-mouth in spreading the story without large expenditures. Combine this efficiency with the network of distributorships, and the results have been staggering. In tandem, SmartStockAdvisor.com has worked to see that shareholder's concerns are addressed by the company. And again, despite being already stretched to the hilt, Microphonics has made every effort to accommodate us. They truly are committed to building a strong shareholder base along with a powerhouse of a company. We'd like to expand on just what has been accomplished- in just a few short months on their own, and in a little over a month with SmartStockAdvisor.com
CONTRACTS/SALES:
Microphonics has added 3 distributors in just the second quarter alone. In 1999 they have announced numerous contracts with major entities, many of which offer great hope for very significant future revenue streams. 1st Qtr financials seem to support this, since the company realized a net profit of nearly $200,000, or almost 2 cents per share on revenues of $ 365,242. Compared to a loss of $59,567 on revenues of $552,533 for all of 1998 and a greater loss of 469,318 on revenues of 299,138 in all of 1997, the direction they're headed becomes much clearer.
DILUTION: none has occurred, nor is planned, nor is anticipated.
10,000,000 shares outstanding-per Olde Monmouth Stock Transfer
CREDIT LINE: credit line established with Nation's Bank for future use, an encouraging vote of confidence from a leading lending institution
FINANCIALS: Even though the SEC does not require that MRPS be fully
reporting for several months, admittedly the company lost credibility in this area because they made some time commitments that had not been fulfilled. However, we are encouraged that they now understand what it takes to move forward in getting their financial house in order. They are in the process of retaining a major, internationally known accounting firm. A final decision will be announced shortly. This firm will be responsible for submitting forms to the SEC and auditing the financials, and providing assistance in all areas of accounting.
Addressing the difference in salaries between 1997, 1998, and 1Q 1999:
You will note that the salaries in 1Q 1999 are significantly less than in previous years. This is due to three factors:
1. Microphonics CEO, Mr. Jimmy Gayle, will not be drawing his salary from the company this year.
2. There are 2 less employees this year.
3. Salespersons are now paid in commission and only upon receipt of payment for goods.
BOTTOM LINE: Operating any company is demanding. Shuttling a company through the growth of which Microphonics is experiencing requires vision, fortitude, and flexibility. Delays and encumbrances are inevitable. Not all are bad. A sudden request for an immediate product demonstration from a major corporation often calls for compromise. We all know that their resources have been sparse and time can be a precious commodity for anybody. But they are seeking help for what promises to be a phenomenal stage of growth. Besides employing SmartStockAdvisor.com to accommodate shareholders, a new salesperson has been hired within the last few weeks and a well known full-service accounting firm is about to be retained. Additional help will also be joining the team shortly.
SmartStockAdvisor.com, being comprised of individual seasoned investors, understands the frustration of shareholders in not being able to get all the information all the time. We will do our best to respond in a timely fashion to genuine concerns. But we can not and will not react to everything we read on the message boards. The anonymity and lack of restrictions allow some boards to often seem like the Wild West of communications. We are not here to cater to daytraders or respond to every accusation, request, or demand that finds its way on to these boards, as that is in the interest of no one but the contester. We will certainly respond to anyone who makes the effort to call us at 619-492-8061 or write to us at smartstockadvisor@yahoo.com. In short, we will never please all, so we'll focus our efforts on what's best for the long term growth of Microphonics.
When we first came on board with Microphonics, we clearly spelled out what our goals were. Thanks to the determination and commitment of Jimmy Gayle, Myles Izakoff, and their entire staff, we were able to meet all of them. Undoubtedly, there will always be other hurdles to overcome and issues to address, but we believe that the future bodes well for Microphonics and it's shareholders. Of this, SmartStockAdvisor.com is looking forward to being a part.
==================
1999 RECAP:
- Solidly improving financial performance
- 3 new distributors signed in the last 3 months with existing client
relationships; more to be added; sales just beginning
- Many contracts in 1999 with a "who's who" list of major corporations,
and in negotiations with dozens more
- Commitment to hiring a full-service renowned accounting firm to
provide comprehensive financial reports and expedite compliance with
all SEC regulations
- New partnership and credit line with Nation's Bank, who did their own
DD on Microphonics
- Outsourcing of PR/IR to free up internal personnel
- Another new talented salesperson added with more to come
- Two more director's seats for the Board to be filled
- New improved website- microphonics.com
- And of course, the stars of the company: the model 111RCK and A07.
Remember, the company believes they have never lost a bid to any
competitor
Disclaimer: SmartStockAdvisor.com is a compensated agent of Microphonics, Inc. as of May 18,1999. SSA has been hired to perform press and investor relations for the company and are being compensated as follows: during the first three months of our contract SSA will receive 3K freely trading shares and 2K restricted shares per month; thereafter SSA will receive 5K restricted shares per month, with possible additional restricted shares on a quarterly basis. The individuals comprising SmartStockAdvisor.com collectively, in their personal accounts, own less than 1% of the outstanding shares of Microphonics.
|
