Dear Ryan,
You have made a good observation concerning John Chew's recent Research Update. He did lower his estimates concerning TAD revenue. The reason is primarily due to the fact that ACRT hadn't recruited as many account executives as he had anticipated. ACRT expects to add about one new account executive each month. A Dun & Bradstreet survey reveals there are approximately 200,000 companies with combined potential revenues of $80 billion. ACRT's penetration into this market depends on its ability to educate current and new customers in utilizing TADs in their business. This will initially be done through account executives. Ryan, you suggest that our revenues are growing less and less. Actually, our past has not shown a single quarter with revenues being any less than the previous quarter. In fact, they have been significantly higher. Revenues for our fiscal year ending June 30, 1996 were up 45% over the comarable 1995 period. Equally impressive has been each prior successive year. Of even more importance, during fiscal 1996, earnings per share increased 75% and net income boasted an 86% increase. There are no guarantees that ACRT will match past performance. You are aware that the November 21, 1996 Taglich Research Update estimates an even better performance this year. Can we do it? We will all have to wait and see. The TAD Program works and a key obstacle to ACRT's growth is as stated above - "its ability to educate current and new customers in utilizing TADs in their business." The first quarter was on target with Mr. Chew's estimate. His second quarter estimate shows net income of $282,886 or $0.05 per share. Our second quarter just ended December 31, 1996. This 2nd quarter report should be out in 5 or 6 weeks, at the end of January or the first week in February.
Very truly yours,
Mitch Menik
Investor Relations |
