Modern Technology Corp Issues Update on Annual Report and New Acquisitions
Monday October 17, 3:54 pm ET
OXFORD, MS--(MARKET WIRE)--Oct 17, 2005 -- Modern Technology Corp. (OTC BB:MOTG.OB - News) a diversified technology development and acquisition company announced today it will be a day or so late in filing its Form 10K-SB. The delay could not be avoided due to the massive new accounting issues faced from MOTG's recent activities.
The company anticipates revenues to be inline with management expectations and the company reiterated its revenue projections for 2005.
The company previously scheduled the Closing of the InMarketing Group, Inc. for October 15th, 2005. The Closing of this acquisition is still underway and anticipates completing the Closing shortly after final review of all Definitive Agreements among the parties. This acquisition adds an estimated $11 Million in 2005 profitable revenues and a projected additional $13 Million in profitable revenues for 2006. InMarketing Group generated $8.7 Million in profitable revenues in 2004 and generated a profitable $5.8 Million in the first half of 2005.
Anthony Welch, Modern Technology Corp.'s Chairman, said, "Our Form 10K will be slightly late. However, it will be filed within the next day or so and the numbers will be inline with our expectations. We believe our retail sector to generate anywhere between $8 million and $11 million for calendar 2005 based on a strong selling season and the new expanded operations. We are coming into the busiest season when most sales are made. Our new acquisition under closing will add another $11,000,000 in profitable revenues for calendar 2005. From these subsidiaries alone, we will have revenues projected to be in excess of $20,000,000 for calendar 2005. These revenue projections do not include any of the other acquisitions we are working on now. It must be further noted that we have acquisition under consideration may propel the company beyond 50,000,000 for 2005."
The company's subsidiary, Sound City (www.soundcity.com), is in the process of expanding its retail footprint and continues to add product lines. Sound City anticipates a strong retail selling season. InMarketing Group is expected to continue its strong year-on-year growth and profitability. The company expects ongoing synergy-based cost reductions as well as increased revenue growth resulting from the synergies between the subsidiaries.
This guidance is the company's best, good faith estimate based on current conditions and numerous assumptions about the company's industry, its access to financing, the competitive and regulatory landscape and its ability to successfully consummate the acquisitions under consideration.
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp. is a diversified technology development and acquisition company, building revenues by strategic acquisition and commercialization of nascent commercial technology and by the acquisition of synergistic operating companies. MOTG commercializes technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to consistently build shareholder value through accretive acquisitions of emerging technology or acquiring operating companies capable of benefiting from technology infrastructure enhancements or new product lines. For more information, visit: moderntechnologycorp.com.
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact:
Company Contact:
Friedland Corporate Investor Services LLC
Jesse Blum
Tel. 212-757-9454
Modern Technology Corp.
1420 North Lamar Blvd.
Oxford, MS 38655 USA
Phone: +1.662.236.5928
Fax: +1.662.236.7663
Web: moderntechnologycorp.com
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