Corporate Profile
Stock Data:
Business: Electro-optic flat panel displays OTC BB Symbol: ADOT
52 Week Range: $0.50 - $2.13
Common Shares Outstanding: 5.3 million
Estimated Public Float: 500,000
Fiscal Year End: December 31
Book Value: $0.07
Current Ratio: 1.14
Market Makers: Acap Financial / Comprehensive Capital / Frankel &
Company / Hill Thompson / La Jolla Capital
Company Contacts: Investor Relations: Advanced Optics ElectronicsOTC
Financial Network 901 Rio Grande 1040 Great Plain Ave.Building G Suite
250 Second FloorAlbuquerque, NM 87113Needham, MA 02192Tel (505 )
797-7878 Tel (888) 468-2855Fax (505) 858-1871 Fax (617) 444-6101Leslie
S. Robins Arthur E. Perham VExec. Vice President Investor Relations
Corporate Summary Advanced Optics Electronics, Inc. (ADOT) develops and
is preparing to market and manufacture patented electronic instant
changeable billboards for new installations and conversions of existing
units in the $1.8 billion outdoor advertising industry. The Company,
which recently received two orders valued at a total of $1.7 million, is
holding discussions with a leading North American billboard company to
install its technology in 5% of the advertiser's 36,000 outdoor
displays. Through its patented Electro-optic technology, Advanced Optics
provides crisp, flicker free images in a wide range of weather and light
conditions. The Company employs a combination of high contrast screen
structure and brightness adjustment architecture, modest energy usage,
and submicro switching time to create superior 14 by 48 foot billboard
images. Advanced Optics has developed a software program to manage all
billboard graphics from a remote access terminal via satellite. In this
manner, the need to produce large billboard prints will be eliminated
and advertisers will be able to buy time similar to television and radio
advertisement blocks.
Outdoor Advertising
Used in high density traffic locations, outdoor advertising attracts
business and is the most cost-effective advertising medium available:
priced 80% less than television, 60% less than newspaper, and 50% less
than radio on average. Advanced Optics anticipates electronic billboard
advertising costs will be comparable to other outdoor advertising
options, and therefore benefit from similar cost advantages over
television, print, and radio advertising. Research shows that billboards
are a primary source of information for travelers. In fact, 93% of
travelers use billboards for tourist and travel-related information
while 83% rely on billboards to locate food, lodging, and service
stations. New technologies are revolutionizing the $1.8 billion outdoor
advertising industry and satisfying ever-increasing customer demands for
effective, visible and unique design capabilities. The importance of
outdoor advertising for an increasingly broad variety of advertisers has
boosted outdoor advertising revenues 8.2% in 1995 - the highest in a
decade. Technological innovations have brought the billboard to the
forefront of many advertising campaigns. As lifestyles continue to
become more mobile, outdoor advertising will likely present an ever more
effective and powerful medium. Sources: Outdoor Advertising Association
of America; U.S. Travel Center Data
Highlights
*The $1.8 billion outdoor advertising industry achieved annual growth of
8.2% in 1995, the highest in a decade.
*The Company's patented technology has applications in military,
industrial, medical, and communications markets.
*In March 1997 the Company received a contract for two units valued at a
total of $1.7 million.
*The Company benefits from the original research developed by scientists
at the U.S. Government funded Los Alamos and Sandia Laboratories in New
Mexico.
*The Company's display has the highest contrast ratio and brightness,
minimal energy requirements, and a competitive price more than $8
million below market alternatives.
Bright Future
With commercial, industrial, and military applications, the
possibilities for Advanced Optics' technology (patents and patents
pending) are virtually infinite. The Company's technology meets the flat
panel industry's demand for clarity, brightness, speed and the ability
to function under any weather condition. Research conducted at the U.S.
Government funded Los Alamos and Sandia Laboratories was used in
developing the Advanced Optics technology which maintains its picture
quality under all weather conditions and has no bleed-through resolution
problems. With these and other advantages, Advanced Optics is
well-positioned for future diversification into additional flat panel
display sectors once its outdoor advertising products are properly
established.
Marketing Strategy
Target Outdoor Display Industry. The unique technology used in the
Advanced Optics large scale flat panel display has a wide variety of
military, industrial, medical, and communications applications. Having
reviewed several of these sectors, the Company will initially focus on
the commercial market where the capabilities of its large scale flat
panel technology surpass all industry alternatives.
Complete Production and Delivery. Advanced Optics has received orders
for two systems in 1997, valued at a total of $1.7 million, and projects
substantial earnings from the sale of 22 to 25 systems during 1998 and
1999.
Expand Market Presence. As production levels increase and the Company
completes its financing efforts, Advanced Optics will increase direct
marketing efforts for its high performance outdoor flat panel displays.
Enhance Competitive Position. The Company is developing a turnkey
package to supply the software, outdoor display panel, and the
technicians to manage and uplink its billboards to a satellite network,
thereby enabling remote management of the display image and message.
Advanced Optics has developed the software program and received several
inquiries for its turnkey package from potential and current purchasers
of its large scale flat panel displays.
Flat Panel Displays
In 1994, the U.S. Department of Defense (DOD) enacted a flat panel
display initiative to encourage domestic involvement in an industry
which was dominated by foreign firms. This action was taken in order to
safeguard the nation's technological development and ensure the domestic
production capabilities of various military applications such as
battlefield maps and helmet displays.
The DOD committed roughly $580 million to stimulate the U.S. flat panel
display industry. Based on this influx, the Department anticipates that
flat panel sales should exceed $20 billion by the year 2000. In
addition, the Departments of Energy and Commerce, the U.S. Customs, the
Office of Science Technology Policy, and the National Economic Council
are committed to the goal of commercializing the relevant technology
that is developed in U.S. laboratories. Source: U.S. Department of
Defense
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