I like the potential for this co.
From 3rd Qrt.97 Filing-
AMERICAN GENERAL VENTURES, INC.
FORM 10-QSB
FOR THE THREE MONTHS ENDED SEPTEMBER, 1997
ITEM 2 - MANAGEMENT DISCUSSION AND ANALYSIS
Results of Operations
During the period from July 1, 1997 through September 30, 1997 the Company
revenues were $109,385, compared with $504,728 for the same period in 1996. The
decrease in revenues was due to the Company's subsidiary ACI Micro Systems, Inc.
restructuring its approach from selling its products to Wal-Mart retail stores
to selling its products solely through Wal-Mart Online. Wal-Mart Online issued
ACI a second vendor agreement allowing the Company to sell pre-configured
desktop computers, notebook computers and build to order (BTO) computers through
its Web Site. By restructuring ACI's direction to Wal-Mart Online only, orders
to Wal-Mart retail stores were discontinued and resulted in a significant drop
in revenues for the third Quarter. Some of the reasons for the restructure were
due to the following:
1. Wal-Mart Online does not require the Company to guaranty its sales. That is,
the Company's products are delivered only after its product has been purchased
by the end user. Some of the Wal-Mart retail stores had over estimated its
computer sales and when the computers were not sold, they returned the computers
to the Company. The computer industry is plagued with obsolescence that resulted
in returned, dated product to the Company.
Significant losses are incurred when liquidating or upgrading the product.
2. Wal-Mart Online has given the Company an exclusive for the BTO desktop and
notebook computers.
3. Wal-Mart Online pays net fifteen days from date of shipment.
4. Wal-Mart Online is a new division within Wal-Mart Stores, Inc. and its growth
parallels the expected growth for the Company. Last quarter ACI had sales
through Wal-Mart Online of $950.00; this quarter ACI had revenues through
Wal-Mart Online of $72,287 and expects that the next quarter will generate
$150,000 in revenues through Wal-Mart Online. ACI Wal-Mart Online revenues are
in the top five for all Online vendors and do not include BTO and notebook
computer sales.
Just for interest sake does anyone know if another vendor has taken over in-store
computer retail sales? I live in Canada and will see who is selling them in-store here.
How will ACI Micro reach first time buyers when you need a computer to access the internet?<g>
Later:Rick
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