Axion, now with revenues and lean cost structure...it won't take much to tip this company into profitability (it may be there now). The only unknown for me is the rate of growth of revenue. There has been NO stock promotion.
Bid/Offer .18x.20 Gary Economus
Axion Releases Year 2000 Results, Demonstrates Significant Growth
EDMONTON, Alberta - (Business Wire) -June 29, 2001-- Axion Spatial Imaging Inc. (Pink Sheets: AXON), a leader in software technology for display, distribution, and manipulation of geographic information, today released its results for the year 2000. In reflecting upon the year's accomplishments, the management team of Markus Lemke, CEO of Axion, and Milton Lemke, COO, noted the following developments:
"2000 was a year of transition for Axion. While realizing the company's potential is always a work in progress, feel the year was a success. We believe we substantially accomplished our goal to transition the company from its' previous focus on funded research and development to profitably implementing the introduction of our developed technologies into our target markets.
We have achieved these objectives while reducing our costs, continuing to eliminate debt, and significantly increasing our revenues.
The financial results were much improved and quantitatively show how we're making progress. Our total revenues for the year were up 95% over 1999 to US$773,720. Our contract services revenues actually increased by 207% in 2000. Our Gross Margin was 32.5%. These revenues were generated while reducing total expenses by 54%.
Overall the performance resulted in a reduction of our net losses from US$617,599 in 1999, to US$111,821 for 2000 (an improvement of US$505,778), translating to a net loss per common share of US$0.01 in 2000, compared to US$0.06 in 1999.
Revenues were increased on the strength of three main factors -
· a dedicated increase in guerilla marketing and sales activity concentrating on new customers within our target industry base across North America,
· additional work coming in as a result of successful pilot projects implemented in late 1999 through 2000,
· a deliberate shift in focus from product-based CD-ROM sales to software development and consulting.
Our clients saw Axion's technology proven, and signed up for additional development work, as well as for sales of software and system solutions containing Axion technologies.
Axion's business model of developing software solutions under development contracts, and establishing royalty arrangements derived from the ongoing sale of the resulting technology by our clients, thus began proving its effectiveness in earnest during the past year. This produced the first royalty revenues for the company during 2000.
Costs were reduced through a dedicated effort in eliminating debt, and in restructuring management and overhead. Outstanding debenture and shareholder loan debts were either eliminated or had terms for payment established and kept. In addition, the company consolidated and reduced the number of management and administrative positions by two, directly and positively impacting overhead costs.
Strategic alliances and partnerships were formed with some key clients. This resulted in access to shared marketing and sales resources that produced savings in costs of sales.
We did not change our corporate commitment to remain at the very cutting edge of technology, In 2000 Axion continued its practice of ensuring that we devoted a sizable portion of our engineering and development time to the research and development of new technologies in the GIS applications field. This will ensure our ability to create new tools, products, and processes to respond to the rapidly diversifying location-based information market.
Axion recruited an additional doctoral-level programming specialist for this reason in 2000 - both to contribute enhancements to our current line of technologies, and to conduct research, development, and prototyping of the next line of Axion capabilities.
In addition to the establishment of a new Chief Executive Officer in December 1999, Axion further refined and enhanced its management structure, promoting from within a Chief Operating Officer who assumed direct responsibility for sales, technology development, and operations, and a General Manager responsible for production, accounting, and human resources.
Axion's Board of Directors was also revised and expanded in 2000, adding direct and hands-on wisdom and depth of experience in public market finance, accounting, management, and sales and marketing. Our Board played a key role in setting and monitoring the aggressive new direction in which Axion headed in 2000.
The company filed a preliminary Form 10-SB Registration with the Securities and Exchange Commission in early 2000, and with the subsequent responses and suggestions from the SEC, voluntarily withdrew its filing in order to concentrate on correcting and enhancing the underlying fundamentals necessary for status as a fully-reporting company under the Securities and Exchange Commission, and a consequent return to the Over-the-Counter Bulletin Board (OTC BB) Exchange. The milestones achieved in 2000 have positioned the company to turn its attention to such a filing by mid-2001.
Axion's goals for 2001 include: fully exploiting strategic partnerships signed in 2000, with significant focus on sales and marketing strategies, (including the addition of sales and marketing personnel, as a top priority).
Our stated goal is to attain positive earnings per share for the year, and make the transition from operating loss to profit status by the third quarter.
2001 is expected to be our first year of regular and sustained royalty income.
We expect this to be generated by:
1. Sales of hardware componentry with Axion software embedded;
2. Implementation of Axion software in Internet distribution of imagery;
3. Specific asset management software sales;
4. Growth in the aviation in-flight entertainment sector.
We will maintain a strong focus on research and development, with new technological capability in the area of 3D imagery as a primary goal.
The successful achievement of these positive financial and technological trends in 2000 points to a year of expansion and growth for 2001."
The company's Audited and Consolidated Financial Statements are available for viewing at the company's website at www.axionspatial.com, or upon request from the company directly at (403) 270-3132 .
Except for the historical information presented herein, the matters set forth in this press release are forward looking statements within the meaning of the ``safe-harbor'' provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements. Axion Spatial Imaging is a registered trademark of Axion Spatial Imaging, Inc. All other names and trademarks mentioned above are held by their respective owners and hereby acknowledged.
For further information, contact:
Markus Lemke
CEO , Axion Spatial Imaging Inc.
Ph. (403) 270-3132/Fax:(780) 423-4468
Email: markusl@axionspatial.com
axionspatial.com
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