Year end review
Conac Software Corp COT
Shares issued 8,205,234 Dec 22 close $0.60
Wed 23 Dec 98 News Release
Ms. Jacqueline Michael reports
This has been an exciting year of major accomplishments for Conac.
The first success factor for Conac in 1998 has been the development and
implementation of a new corporate identity.
In August of this year, Conac implemented a strategic communications
campaign designed to heighten the company's visibility in the industry and
the public market. The company hired one of Vancouver's leading graphic
designers, Ken Koo Creative Group, to handle its marketing and advertising
campaign and to create a new corporate image that accurately reflects
Conac's position as the provider of strategic management information
systems for the new millennium. This new corporate image is also
dynamically portrayed in Conac's new trade booth, which has been displayed
at the last trade shows that the company has attended in Baltimore and
Toronto.
Also this year, Conac opened its first U.S. sales and marketing office in
Redmond Washington. Several months of research in a U.S. test market has
revealed a definite need for Conac's comprehensive suite of financial and
project management software products. The company has hired a new director
and sales staff to manage the U.S. operations. The complete U.S. team comes
directly from one of Conac's main competitors and it is currently using its
extensive experience and skills to manage and generate new sales leads for
Conac in the United States.
The next success factor for Conac in 1998 has been valued market growth.
Conac has experienced what it likes to call "valued market growth" this
year, despite the fact that the bottom line on the financial statements
does not accurately depict this growth factor. This is due to two key
reasons: First of all, a significant amount of money has been dedicated to
establishing the groundwork in the development of a strong marketing
campaign and setting up the infrastructure for the U.S. office.
Furthermore, due to the fact that the new marketing campaign was only
implemented in late October of this year, the results of this campaign will
not be fully realized until the first and second quarters of next fiscal
year.
Despite this expected lag between marketing and sales activity, Conac is
currently experiencing "valued market growth" which means that there has
already been a dramatic increase in actual sales since the onset of the
marketing campaign in late October. Conac has seen a significant increase
in revenue for the new fiscal year compared to the same period last year.
This growth trend clearly shows that Conac's products are being received
favourably by the industry and that there is a tremendous need and demand
for the products in the market. This is also an indication that Conac's
marketing efforts are starting to pay off.
Some notable sales in this past few months have included:
The Gisbourne Group, Burnaby, B.C.
Artistic Stairs, Calgary, Alberta;
Chancellor Industrial Construction Ltd., Edmonton, Alberta;
Underground Services Ltd., Bolton, Ontario;
Vancouver International Airport Services, Richmond, B.C.;
City of Saskatoon, Saskatchewan;
Mountain West Fabrications, Fruita, Colorado;
Etalco Inc., Everett, Washington.
U.S. sales have also been taking off since the marketing push into the
United States. There has been a great interest from value-added resellers
in the United States seeking out Conac's products to market and service.
Conac is currently experiencing a tremendous growth in inquiries and sales
which is only expected to intensify as the effects of the marketing
campaign further manifest themselves.
Perhaps the most exciting success factor for Conac this year is the
foundation that has been laid for the future.
The company is pleased with its efforts in creating a greater corporate
awareness and brand image in the construction marketplace. Positive
feedback from trade shows and advertising campaigns shows that Conac's
brand name and reputation for leading edge products is gaining good
recognition throughout Canada and is starting to catch on in the United
States. Conac's newly constructed website is also generating positive
interest from potential business partners and clients who e-mail the
company directly from the website.
Future success also lies in Conac's ability to secure strategic
partnerships and joint ventures both at home and abroad. The company is
being sought after by international dealers who have a great interest in
marketing Conac's products in their home countries.
Another program that is currently under way is Conac's new accounting
partnership program aimed at Canada's top accounting firms. Through
alliances with these firms, Conac will greatly expand its market reach by
referrals to clients to use Conac as their leading solutions specialist for
project management accounting software.
Finally, Conac's continued success lies in its leading edge products.
Conac's products remain unique in the industry with features such as the
ConacCADD design tool, which is incorporated into the Trackpoint estimating
system. Conac has also added the new Document Control System to its suite
of products which integrates with the accounting and estimating systems.
Also, the market acceptance of the ConacAxis c/s enterprise edition has
been exciting. Third party evaluation of this product has shown that Conac
has successfully developed a product that compares well ahead of its
competition in both technology and functionality. Conac has been rated by
an independent software consultant as being 50 per cent ahead of its top
competitor.
Success for Conac this year has been measured in several ways: the
generation of a new corporate identity and awareness; valued market growth
and the steady progression towards a bright future. Tremendous profit
potential exists because of the significant groundwork that has been laid
over these past several months.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
