July 2nd Teleconference continued from previous message:
NICOLE: MR. Chuck Brod, please state your company name followed by your
question.
BROD: I'm a shareholder who's held the stock since January. I have a question in
regards to what you define as the campus environment? And from my understanding,
that's distances up to 8,000 feet in which you are keeping the video signal analog. And
I'm wondering if there's any technology that you're working on, or developments in the
future that may expand the campus environment to greater links in the future or any
developments that might affect that?
YODER: Let me take that. To answer your question, the campus environment is any
place we can go from a switch -- central switch location out to a remote unit. That
travels some 8,000 feet just as you said, okay. So that means that the end to end, if you
had 8,000 on one end of the switch and 8,000 on the other end of the switch, that would
be a 16,000 foot campus. So that's roughly just a tad short of three miles. So that could
go and that could be any number of different people coming back to a central location,
okay? Does that clarify that meaning for you?
BROD: Mm. hm.
YODER: Okay. Now as far as the new technology, without giving away strategy, yes we
are working on a number of new technology of our own design that will allow us to do a
number of things. But let me point out that one of the things that we've been very careful
to make sure we do is we have an open architecture approach. The open architecture
allows us to go forward and match the different kinds of systems that are being
developed by other players in this highly explosive market for a distributions scheme,
and without getting too technical, there are some changes being brought to bear by
research done by AT&T called ADSL and/or HDSL, and those are schemes that are
available to us and we are compatible with. So in those cases where that seems
proper and appropriate, then we would use those. We also are very compatible with
what they call the fiber last miles program from something such as pair gain, and they
have certain kinds of technology that allow signals to be driven some twenty miles,
okay, for very specific purposes, though, and we are compatible with those under those
circumstances and those applications where they are required. Okay, now those can
get into some very high expense, so we don't talk about those very much, but we're
very, very compatible with them. And, of course we have our own developments, which
we'll be able to talk to you more about down the line.
DENARO: Okay, thanks.
GRAMER: Nicole, this is Cynthia. We're going to be ending the call pretty soon. It's
getting on five o'clock, but I do want to tell everyone that we are taping this and that if
you want to receive a tape, you can call OTC Communications. The number is
800-457-8674, that's 800-457-8674, and if you have questions but don't get an
opportunity to ask them on this teleconference, you can visit our web site, and I'll give
you the web address when we end the call. Okay, Nicole, next question?
NICOLE: Mr. David Griffith, please state your company name followed by your
question.
GRIFFITH: Case management -- you may have just answered the question. I was
wondering if you were compatible with other videoconferencing equipment such as
Picture Tel?
YODER: Right, let me address that. As we stated before, we have an open
architecture, and we bank on the fact that the Picture Tels of the world will be what we
call standards based, and in their case they are H320 compliant, and therefore our
system fits perfectly into that program. That gives anybody who currently has those
kinds of legacy devices the opportunity to work with us, and then we can show them
some other techniques and what-not -- let's call them video enhancing techniques that
allows their systems to be even better than they are currently today by using our system.
GRIFFITH: Do you have a plan -- I mean, how does one go about buying SEXI
equipment like -- there's several local hospitals here in the New Orleans area that could
be approached and -- I mean this sounds like a great product. How are you getting out
here to them?
YODER: Basically what we're doing, as I mentioned before, we're using a flagship
account process. We would love to work with people in that area. If you have any ideas,
I'd like to get with you off-line, or you can certainly use our web page mail approach, or
you can call us right after this is over, and we'll work with you.
GRIFFITH: Fine.
YODER: We've got a number of people that -- as I mentioned before and when I first
started, we have a number of people that we're dealing with that are in the medical
arena as vertical market value-added retailers, but we are always looking for the right
people to handle the geographic and/or the special situation, and we're looking for the
right teaming partners to do that.
GRIFFITH: That ADSL technology -- was that the ADSL program, ADSL
communications?
YODER: The largest adapter of the ADSL has been a company called Performance
Technology, and they have put more what we call practical work into it. The people that
actually have it on the market is AT&T paradigm, and you can buy the chip set from
them, and then you have to develop all of the rest of the stuff yourself.
GRIFFITH: Okay, thanks a lot.
YODER: You bet.
GRAMER: Okay, maybe we have time for one more question, Nicole?
NICOLE: Ms. Karen Lazorovic, please state your company name followed by your
question.
LAZOROVIC: Yes, hi. This is Karen Lazorovic from KLP Capital Management. The
question is regarding the orders that you said you've booked. Have you actually taken
in any revenue?
YODER: Right now, I think we've gotten a check for somewhere in the neighborhood of
$150,000-$160,000.
LAZOROVIC: I see. When do you expect to have some real revenues come in from the
government?
YODER: What we're expecting is, as soon as they send the checks. I mean we're not
in control of their funds. I know we make our tax deposits, but I'm afraid they're not
equally as kind. Karen, we hate to keep -- we've beaten this to death with the budget
crunch, and we sort of leave it alone from now on. And when we first acquired the
company, the people that were involved were very much tied to the government, and
that was the total direction of the company. As you can tell by the calls today, we've
changed that direction because of certain areas that we could be going into, and also
because we want to get paid some time in our life time. And the budget crunch has put
everybody behind, and we're not using the excuse -- half the world is standing there in
line also. We have our integrators and in effect these orders go through with the
government. And they are big companies, SAIC is probably the one we use most in the
government. SAIC is a half a million dollar revenue company. And SAIC yells at the
government for us, and as you can see, it doesn't do us too much good. We have
orders in with the Marine Corp, the State Department, and the State Department wants
us to get 'em out just as much as we do. But we're still waiting for the people to say go.
The orders are there, it's just that they have the funding but they're still way behind. So
we're standing in line like everybody else. And that's sort of why we've moved towards
hospitals, prisons, and universities and in other private hospitals direction, so that the
revenues will come in a lot faster. We're expecting by the end of the second quarter, let
me put it that way, to impress you with the revenue.
GRAMER: Very good, thank you. OK, well this has been a really wonderful conference
call. I think the bottom line is that SYSTEMS of Excellence has an excellent product and
they as you can see have excellent people in charge of marketing that. Our Web site
address, for those of you who were not able to ask questions, but would like to do so
electronically, it's otcfn.com. All right, if you have any other questions, feel
free to call Steven Mitchell at OTC Communications. The number again to call is
800-457-8674 and we may direct you to one of the other gentleman. If you have
technical questions you can speak with Dick Yoder and that's it for me. Do you want to
say good-bye Charles or Dick?
HUTTOE: We are in our marketing and sales office where we're talking from right now
in McLean, Virginia twenty minutes outside of Washington, D.C. We invite everyone to
come to our office which is a virtual office as I call it now. You'll see a demonstration on
how this product works and of course all the variables that go into it and all the items
that we've placed onto it. It's quite a demonstration and they would be very impressed.
So everyone's welcome to come to McLean and check us out.
GRAMER: Thanks, Charles.
HUTTOE: Thank you. OK. Thank you, Nicole. And as I said before, if anyone wants a
tape of this teleconference, call OTC Communications and we'll send one out to you.
NICOLE: Ladies and gentleman, that does conclude the System of Excellence
conference call for today. You may all disconnect and thank you for participating. |
