Here's the 2nd quarter results for AMGV. Much better than 1st for sure. They have reduced debt and state they will be profitable in 1998. 3rd quarter results will show a profit due to revenues from Wal-Mart BTO and Microsoft Hotmail.com IMO.
August 24, 1998
AMERICAN GENERAL VENTURES INC (AMGV)
Quarterly Report (SEC form 10QSB)
- MANAGEMENT DISCUSSION AND ANALYSIS
Results of Operations
During the period from April 1, 1998 through June 30, 1998 the Company revenues were $120,318 compared to $310,727
for the same period in 1997. The decrease in revenues was due to decreased orders for computers and accessories from
Wal-Mart Stores, Inc. taken by the Company's subsidiary ACI Micro Systems, Inc. ACI terminated its sales to Wal-Mart
retail stores since it was issued a second vendor number from Wal-Mart Online. The Company is now marketing its products
through Wal-Mart's Internet store and not to Wal-Mart's physical retail stores.
The Company presently offers seven pre-configured computer systems on Wal-Mart Online and expects to have a "build to
order" (BTO) desktop and notebook computer online in August 1998. The BTO computer has been very successful with Dell
Computers and Gateway 2000. The Company expects that by partnering with Wal-Mart it will capture a percentage of Dell's
and Gateway's market share. This quarter's revenues are up 64% from last quarter's revenues and the Company expects to
exceed this trend of increased revenues. In addition to having an exclusive agreement with Wal-Mart Online to manufacture its
BTO computers, the Company is developing its own Internet web site. The Company has an advertising agreement with
Microsoft's 16 million member e-mail service, Hotmail, Inc. Early indications suggest that revenues for the third quarter will
more than double from this quarter's revenues.
Since the Company has changed its strategy to sell its product through Wal-Mart Online, its losses have significantly decreased.
The Company losses in 1997 were less than half of the losses in 1996. The Company expects to show a profit for 1998.
Working Capital and Capital Resources
Working capital at June 30, 1998 (current assets less current liabilities) totaled ($39,474) compared to ($58,606) at June 30,
1997. The reduction in the working capital deficit was primarily due to a decrease in accounts payable. The Company was able
to reduce a debt of $110,000 to $32,000.
The Company will use the "just in time" inventory method for sales through it web site. This will reduce the need for operating
capital for its own web site because these customers pay in advance by credit card. Also reducing the need for additional
working capital is due to the Company establishing terms with its primary vendor to exceed the length of time of Wal-Mart
payables to the Company. The Company recognizes the need for marketing and continues to seek additional capital for these
expenses. |
