AVMC Shareholder letter out today. I really like these guys--very ambitious, creative folks who are able to get the attention of big companies. Trading at 3 cents. Their 'cloud based, event centric social utility' could catch on, too.
finance.yahoo.com
DRAPER, Utah, May 3, 2011 /PRNewswire/ -- aVinci Media Corporation (OTC:AVMC.ob - News), ("the Company" or "aVinci Media") which has developed a cloud based social utility that allows anyone anywhere to spontaneously share, instantly stream and automatically create personalized photo products from his or her mobile device, in addition to its easy-to-use multi-media authoring solutions deployed in retail stores that allow customers to create photo archive, photo book, poster, DVD archive and other products to enjoy at home or share on social networks and mobile platforms, today released the following general corporate update by Chett Paulsen, the Company's CEO.
Dear Current Shareholders and Readers:
We wanted to provide shareholders and readers with a business update regarding new product developments and progress, new relationships and a financial overview.
Business Update: There have been a number of new developments as we continue to transform the Company in order to take advantage of new markets and opportunities.
New Contracts. The 4th quarter of 2010 saw the launch of our new product creation website for World Wrestling Entertainment (WWE) for which we have seen steady growth not only in the number of transactions but also in revenues and visitors. During our first 120 days we have served more than 350,000 unique visitors who have generated more than 3 million page views and generated weekly orders starting at few to more than 500 orders during a peak week. You can see this site in operation at www.wwecreate.com
New Direction. The Company has been preparing to respond to significant trends in the way consumers create, share and consume image products. This year will see significant changes not only in the Company focus, but also in our business model. We have integrated our product creation technology into a cloud based, event centric social utility. By adopting a cloud based deployment, we are able to allow anyone, anywhere to use and automatically create both virtual and physical personalized photo products from his or her mobile device or personal or Apple computer, which act like a personal photo kiosk. Unlike smart phone applications or online services, users of our technology do not need any application, software or special hardware to spontaneously and automatically create, share and consume products virtually on Facebook or other social networking sites. Additionally users can create, order and purchase hard copy products at the same time as they create virtual products. Our proprietary product creation engine provides significant and measurable performance improvement over traditional product creation solutions—in some cases reducing preview and creation times by a factor of 10 times.
We are currently building a sales pipeline for our new cloud based technology and have seen significant progress in our negotiations with potential partners and customers. If successful, this new approach could significantly increase our revenue potential by putting us in direct contact with customers while expanding our reach to both social and mobile markets; however, we cannot guaranty any increase in customers, revenues or sales. We feel that there is potential Intellectual Property to be protected during our initial rollout and will provide updates as progress is made in this regard.
New Partner. We recently engaged with Gartner Studios to supplement our design library and open new markets traditionally served by paper products. Gartner is introducing our capabilities to their distribution partners and channels. Our new implementation opens up new opportunities for channel partners in the mobile and social markets.
Historical Business: We continue to work with our large retail and brand partners to offer products through mass retailers including Walmart and Walgreens and online through www.myespnhighlights.com. As we shift our focus to new opportunities, we expect retail revenues to play a less significant roll in the overall makeup of our revenues.
Financial Overview: Below are some highlights from our unaudited financial results from 2010 prepared by Company management. We believe the summary to be accurate, but do not represent or warrant the financial results will not change upon the completion of our audit. For a more complete report on our unaudited financial performance, please refer to our recent 8K filing.
Highlights for Year Ended December 31, 2010 to Year Ended December 31, 2009 (all number unaudited).
Revenues. Total revenues increased 122% to $2,389,592 for the year ended December 31, 2010 as compared to the year ended December 31, 2009.
Cost of Goods Sold. GOGS has decreased 33% from 2009 to 2010 in spite of the substantial growth in revenues.
Research and Development. Research and development decreased 39% from 2009 to 2010.
Selling and Marketing. Selling and marketing decreased 63% from 2009 to 2010.
General and Administrative. General and administrative expenses decreased 57% from 2009 to 2010.
Form 10K: In order to preserve cash we have not yet paid the necessary professional fees to have our annual audit completed which is the last item we need to finish and file our 10K. We are working toward having the audit completed as soon practical with the intention to returning to "fully reporting" status and anticipate exploring a move to a larger exchange. We have postponed our annual shareholders meeting and Management has deferred a substantial portion of their salaries over the past several months for the same reasons.
Thank you for your continuing support and we look forward to sharing our progress on these and other initiatives as updates become available.
Sincerely,
Chett B. Paulsen
CEO, aVinci Media Corporation
Safe Harbor Statement
This shareholder letter contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking stat |
