AIRP Report to the British Columbia Securitites Commision and FIRST Qtr # for 97:
Management Discussion:
The Majority of the testing on the SDS Air Box (Static Discharge Shielding) is now complete. After three years of design and developement project with Motorola, the results show that Air Packaging is superior in both protection and cost effectiveness. The SDS Air Box will be our premier product line for 1997.
The Semi-conductor industry is known to move slowly when adopting new and innovative products like the SDS Air Box. Our SDS Air Box, However, has moved quickly to initial ordering with Motorola, much quicker than the standard industry time frame. We have also discovered several other attractive markets requiring custom packaging solutions.
In order to take full advantage of the recently increased sales force, improvemts to marketing continue to be made. Our customers appreciate the unique and innovative way in which the Air Box protects their products.
After completing Air Boxes' cost analysis, David Maginnis, CPA, was appointed to the Board of Directors. The Three new professional industrial sales representatives will work according to a specific marketing/sales plan. Sales territories and industry specializing plans have been implemented. Plans are to prospect only California-based companies at this time in order to minimize cost until sales have progressed.
In order to verify our market research and test results with Motorola, we targeted one of the largest semi-condutor manufactures in the Silicon Valley area of California. We received a commitment from them to start a pilot project for both wafers and IC's(Intergrated Circuits) on tape and reel with the understanding that once the pilot project is finished to their satisfaction, they will phase in the SDS Air Box throughout their organization. We are now targeting and aggressively approaching other wafer fabrication and IC manufacturers presently shipping product on tape and reel.
We have divided the semi-conductor manufacturing industry into 4 segments: 1)semi-conductor wafers; 2) intergrated circuits on tape and reel; 3) quartz glass manufacturers; and 4) wafer fabrication machine manufacturers. we are targeting the appropriate companies in each of these segments.
Further development of our marketing methods will come from an extensive study of the packaging requirements of the Silicon Valley. This contracted study, being carried out for us by a major California University will, along with our efforts, futher broaden our comprehension of the targeted semi-conductor industry. This study, scheduled for completion by July 1997, will be compared to mounting independent laboratory proof and, together with the Motorola research, is expected to confirm our present understanding of the needs of the semi-conductor packaging markets.
An extremely complicated pilot project has recently been completed with one of the leading dental laboratories in the U.S.A, shipping dental restorations between the laboratory and the dentist office. We are VERY encouraged by the size of this market as it provides both Air
Packaging Technologies and the customer a win-win situation with superior protective packaging therby substantially reducing the customer's shipping costs. Also, when compared to their present packaging, will save 100 fold the amount of packagine waste going into landfills. We recently received an intial $200,000.00US order with shippments to commence June 1, 1997. We will actively market the New Dental Air Box to the rest of the enormous dental laboratory industry during the balance of 1997.
A market study for the shipping of aeronautical parts in the U.S.A has been implemented. The intial results confirm the items being shipped are generally high cost, sensitive to damage and relatively small in size. The intial market study will be completed in the first half of 1997 and, if conclusions warrant, we will focus efforts in this market in the second half of 1997 as well.
All plans will be implemented under the direct supervison of the president.
The company continues to receive additional private placement investments to fund the growth of marketing, our sales force and operations.
In November of 1996, Garvin McMinn was elected president and CEO of the company.
In March of 1997, Don Farrell was elected Chairman of the Board of Directors of the Company.
The Current members of the Board are:
Don Farrell---Chairman, Garvin McMinn---President, Elwood Trotter---
Secretary and VP Special Projects and David Maginnis, CPA.
AIR PACKAGING TECHNOLOGIES, INC. and Subsidiary condensed Statement of
Operations( in US Dollars).
For the three months ending 3-31-97
Net Sales..................$44,996
COGS.......................$80,398
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Gross profit(loss)........$(32,402)
General and Adminstration..$273,853
Sales and Marketing........$ 30,588
R&D........................$ 3,255
Foreign Currency Trans(gain)$ (66)
Interest Expense...........$ 12,694
================
Income (loss) before tax....$(355,688)
Provisons for Tax...........$-0-
Net Income (Loss)...........$(355,688)
Net Income loss first Qtr 1995....$(243,739).
For a complete finacial breakdown package please call 1-800-595-9939 and/or 757-6311096 or e-mail rkaiser@series2000.com
With Best Regards,
Rich
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