To clarify two issues:
First, the sales increase of 98 over 97 has to be
calculated in light of the restated 97 numbers of
$1.442mm. This explanation is detailed in the
Annual Report, which I will excerpt and post here
on the mailing date of the Annual Report. Basically,
the revenue comparisons are for revenues from
continuing operations, ie, because we sold
Granville, we took the Granville revenues out of
the comparison.
Secondly, in our interim report for the third quarter
August 17, we made reference to the delay in
shipping related to product quality controls. We
also talked about this in our Special Meeting of
Shareholders that same day. From the feedback
of Dr Bob and others on this thread, it's clear that
we didn't go far enough in warning the market of
the impact this would have. We're addressing this
problem right now and have implemented a rigorous
sales tracking approach to ensure that our projections
are accurate for the future and that we communicate
these targets appropriately.
For the last 6 months of F98 and the two months
thereafter, our sales were held back while we
fixed problems with the product inventory and
more importantly, re-engineered our whole product
line to concentrate on software. We then
mapped out the product family we would introduce
for F99 and have met our first goal by shipping the
VoiceFLOW software December 18. Since December
18, we have installed 14 systems of VoiceFLOW
and can report that they are all running with no
reports of major bugs or errors. Furthermore,
demand for VoiceFLOW has been robust with orders
already equalling or exceeding orders for the
predecessor product PC DART 4.0, which was shipping
from the period January to August.
In our Annual Report, we also spell out the
details of the shift to software and the resulting
impact on margins for the coming year. Again,
I'll excerpt that data as soon as it becomes
available.
Although our participation on this thread has been
limited because of regulatory concerns, we have
never failed to take shareholder calls or answer
private e-mails. Thank you to those of you who
have used these means.
Flora Wood
Investor Relations
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