Analyst Update: AmeriChip is Expected to Control Costs
2008-07-11 14:05 ET - News Release
CLINTON TOWNSHIP, Mich., July 11, 2008 (PRIME NEWSWIRE) -- Based on financial analysis, AmeriChip's (OTCBB:ACII) cost controls were apparently non-existent at best prior to new management taking control May 27, 2008.
Now, however, our understanding is that new management (interim CEO and controller) is making an active effort to control Sales, Administrative and General (SG&A) costs.
Consider the following reported AmeriChip SG&A monthly expenses by quarter
(a) August quarter 2007: $175,000 per month
(b) November quarter 2007: $300,000 per month
(83% over the August, 2007 figure)
(c) February quarter 2008: $400,000 per month
(130% over the August, 2007 figure)
AmeriChip had perhaps 10 people in the SG&A category for the February quarter, so the monthly SG&A cost per day for the February quarter appears to have been $20,000 per person.
SHAREHOLDER DERIVATIVE SUIT
Based on mounting evidence including the above, shareholders initiated a shareholder derivative lawsuit against three individuals who were on the board of directors for the November 2007, February 2008 and May 2008 quarters. It's a joint and several $10 million damage suit alleging mismanagement, carelessness, mistreatment of funds, etc.
The purpose of the legal action appears to be to
(a) Reveal what a large group of shareholders believe is past
inappropriate behavior for the previous board members
including Marc Walther, who remains on the board
(b) Encourage the current board to remove Mr. Walther from
the board of directors based on malfeasance, the basis for
current legal action. (Malfeasance: the performance by
a public official of an act that is legally unjustified,
harmful, or contrary to law; wrongdoing)
(c) Return all three of the defendant's AmeriChip stock to the
company treasury.
About AmeriChip International
americhiplacc.com
Headquartered in Clinton Township, MI, AmeriChip International, Inc. holds a patented technology known as Laser Assisted Chip Control, which can be used to re-engineer the manufacturing process for industrial metal machining applications.
For more information, visit our website at www.americhiplacc.com or contact investor relations, Cynthia Prince, americhip@att.net, 800-650-1708 ext 101, Fax 888-234-1796
This release may include projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable; it can give no assurances that such expectations will prove to have been correct. Actual results could differ materially from the expectations disclosed in this release including, without limitation, forward-looking statements contained in this release.
CONTACT: AmeriChip International, Inc.
Investor Relations:
Cynthia Prince
800-650-1708 ext 101
Fax: 888-234-1796
americhip@att.net |
