Microphonics Letter To Shareholders
NASHVILLE, Tenn., Aug. 4 /PRNewswire/ -- Microphonics. Inc.
(OTC Bulletin Board: MRPS) (http://www.microphonics.com) updates shareholders
with a letter from Jimmy Gayle, CEO, and Myles Izikoff, VP-Sales and
Marketing:
We want all of our shareholders to be informed of our progress here at
Microphonics. This letter, especially with the release of our second quarter
revenue and income numbers, comes at an appropriate time. First, let us state
our appreciation for the loyalty and good wishes we have received from
numerous shareholders. We are doing our best to ensure that this loyalty is
rewarded.
For those that have not experienced what it is like when a small
enterprise is propelled by phenomenal growth and thrust into the public eye,
let us give you a taste of what happens. It is simultaneously exciting and
humbling; challenging and stressful; invigorating and somewhat overwhelming.
After some rough times getting our company rolling forward and our
technology perfected, we then had to confront the complexities of the public
domain -- investment bankers, financing, accounting practices, the SEC, etc.
The key issue for us was to realize that we were now in two businesses. On the
one hand, is the business of research and development, marketing and selling
our products. We must and will keep the majority of our time focused on this
challenge. It is of utmost importance that we do what we do best, build
Microphonics into the company it is becoming, the industry leader in
ultrasound diagnostics. On the other hand, is the business of making our
company, in all aspects, appealing to the stockmarket and responsive to our
shareholders.
In response to the first challenge of growing our business, we have been
working to expand the applications of our technology and to market our
products by direct sales and through a growing list of distributors. Some
shareholders question the lack of major contract announcements over the last
few months. While often frustrating, we can't let ourselves forget that there
is such a thing as a sales cycle. When you are working with the types of
companies we are, this cycle often gets prolonged. Just as an overview of the
process:
1. We make contact with a company and send information and videos.
2. We follow up by phone to confirm receipt and probe needs.
3. We set up a demo to be held at the customer's site.
4. We prove effectiveness with the demo.(30-45 days has elapsed)
5. Customer purchases a few units to test out for themselves
(30-90 days has elapsed)
6. Testing being successful, we enter into contract negotiations with
customer.
7. Negotiations being successful, contract begins approval route for
multiple signatures. (30-90 days has elapsed)
While we wish this process were quicker and easier, we realize that the
caliber of our customers and prospects is certainly the envy of any growing
small company.
It is also important to remember that ongoing sales to a variety of
customers, such as Motion Industries, Berry Bearing, Evans and Associates,
PSI, Sun Belt Fire Apparatus, and various Metro governments, to name just a
few, keep a solid income base in place as large contracts are brought to
fruition.
On the research and development front, new Microphonics software,
presently being tested by General Motors, Goodyear, and Delco Remy, will lead
to exciting new technical applications and keep Microphonics as the industry
leader in ultrasound diagnostics.
In response to the second challenge of ensuring that our stock is
appealing to the market and that we are responsive to our shareholders, we
have taken two major initiatives.
Firstly, we enlisted the services of SmartStockAdvisor.com who have
brought a welcome level of professionalism to our press releases and our
outreach to shareholders and the broader investment community.
Secondly, we are aware of how the lack of financial statements has
prompted concern in many shareholders. Unfortunately, our past missteps in
this area may have hurt our credibility. But these missteps are being
corrected. We have never, nor ever will, mislead our shareholders. We lost
money in 1997; we lost less money in 1998; we made a profit in 1st quarter '99
and a larger one in 2nd quarter '99. While, up to now, the income statements
have been "unaudited", this will soon change. We have retained Ernst & Young
to provide all of us with audited 1997, 1998, 1999 and beyond financials. We
also have hired a chief accounting officer, chosen from candidates sent us by
Ernst & Young. Along with our CAO, another priority for Ernst & Young is to
prepare as rapidly as possible all required SEC filings so that we may be a
fully reporting company.
We will be moving our offices as of September 1, 1999 (phone# will stay
the same) to the modern facilities of the Nashville House in the MetroCenter
office park. We will shortly announce an open house at this new location, and
we hope as many shareholders as possible will attend.
In summary, Microphonics is a solid, growing and exciting company. We're
doing our best to build a solid infrastructure to insure our long term
success. We have to manage our end of the business and we know that our loyal
shareholders will always keep on top of us to do it right. For this we can
only say, "Thank you."
Jimmy Gayle, CEO
Myles Izikoff, VP-Sales and Marketing
Statements included in this press release which are not historical in
nature, are intended to be, and are hereby identified as "forward-looking
statements" for purposes of the safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended by Public Law 104-67 and
provisions of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements may be identified by words including "anticipate,"
"believe," "intends," "estimates," "expects," and similar expressions. The
Company cautions readers that forward-looking statements, including without
limitation those relating to the Company's future business prospects are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those indicated in the forward-looking statements.
Contact: Investor Relations:
SmartStockAdvisor.com
619-492-8061, smartstockadvisor@yahoo.com
smartstockadvisor.com
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. |
