QPIX interview transcript:
Capezzuto, CEO and Mr. Chris McKee, President
Quick Pix, Inc. (QPIX)
<TJ^> At this time I'd like to welcome Mr. John Capezutto, CEO and Mr. Chris McKee President of QPIX.
<Cinswen> Welcome Mr. Capezutto and Mr. McKee.
<TJ^> John / Chris - Cinswen will start the interview..
<Cinswen> Kindly take a few moments and give us a brief description of your company and exactly what services your company provides.
<QPIXCEO> Quality Photographic Imaging (also known as Quik Pix, Inc., or QPI) was established in 1982, and is located in Buena Park, California. Over the past 20 years, QPI has established itself as one of the premier visual marketing support firms on the West Coast, with a proven track record of providing exceptional quality in a timely, professional manner, using state-of-the-art technology.
QPI offers a complete range of high-quality photography services, specializing in the creation of effective color visuals in both digital and photographic formats. QPI's visual marketing products are used in a variety of applications, including
1) trade shows,
2) industrial displays,
3) fast food displays, and
4) commercial advertising.
<Cinswen> Are you using any proprietary techniques that other companies in this field could not be using, which would make QPIX a leader as far as competition for business is concerned?
<QPIXCEO> QPI's services include its very unique and patented product, PHOTO MOTION IMAGES™.
It is a product used primarily in point-of-purchase and display advertising. Currently marketed in the U.S., Europe, Asia and Latin America, QPI's Photo Motion Images™ patented technology is a unique, attention-grabbing color medium that uses existing original images to create the illusion of movement.
It is a technology, that allows for three or five distinct images to be displayed by using a light box. The combined images appear to change, or "morph," as a viewer passes the display. The ability to put multiple images in a single space allows the user to create an active and entertaining display using existing originals, and existing light boxes.
Photo Motion Multi-Imaging Technology creates a visual presentation that is so amazing and distinct that it stands to revolutionize the imaging for backlit advertising displays used in tradeshows, point-of-purchase locations, foot traffic venues, and many other applications.
The "morphing" illusion is created by an optical process and requires:
· No special equipment to be purchased by the end user.
· There are no mechanical devices to need maintenance, and
· No special equipment needed to "load" a display.
<Cinswen> What are the companies present Authorized, Outstanding Shares and Public Float?
<QPIXCEO> Right now there are 200 million authorized, about 12.247 million outstanding and about 3.958 million in the float.
<Cinswen> Can you explain the current various revenue streams for QPIX?
<QPIXCEO> Yes, our business is basically broken down into the following elements:
1) We are the primary graphics supplier to one of the large, local aerospace companies (as mentioned in our March 4, 2002 press release)
2) We do a significant amount of "large" format processing, for other labs, as we have equipment that can handle "big" outputs, that other labs cannot
3) We do graphic outputs for display houses and point of purchase suppliers
4) We do traditional photographic work, and
5) The "HOT BUTTON" for us, is expanding the application base for our Photo Motion Image product.
<Cinswen> What are your present operating expenses and largest controllable expenses?
<QPIXCEO> Presently, our business is growing. We saw a big dip in short term revenues, after September 11th, and it is now starting to pick back up. Our expenses, are to a large part, variable, as we can expanded very rapidly as business grows. Having said that, I should qualify that by saying that a good portion of our sales input is "lumpy", as the sales cycle for the point of purchase large orders, are somewhat long, by nature.
Our fixed expenses right now are about $58K, and the balance is volume related, which is mostly materials specific to an order. We do not carry much in the way of inventory.
<Cinswen> What projected earnings do you foresee for the upcoming quarter?
<QPIXCEO> While we do not forecast earnings on a go forward basis, we are very optimistic about next quarter. There are several long lead point of purchase projects that should close in the coming quarter, which will have short delivery requirements. That is a positive for us.
<Cinswen> In February you filed an S8 - 1,650,000 shares (free trading) to 3 consultants for:
- The review and commentary of Client's business plan
- Assistance in developing an executive summary of Client's business plan
- Assistance in developing Client's "Company Snapshot"
- The review and/or recommendations for the establishment of
Client share options plans
- Review and commentary of issues related to compensation and
Appropriate responsibilities and procedures of Client's board of directors and board committees
- Introductions to research report developers and analysts
- Recommendations and arrangements for Client presentations to
Regional broker/dealers
- Recommendations for Client's participation in established
Financial websites
Can you explain how this will affect current shareholders and how it affects the future plans of the company?
<QPIXCEO> We have felt for some time, that our PhotoMotion product was a "well kept secret", with HUGE potential. We have recognized the need for strategic partners to assist us in taking it to market, and to "raise the bar" on our business plans and objectives.
We are confident that the folks we are partnering with, have the skills, and knowledge, and expertise to help us with our expansion plans. In the "point of purchase" arena, they have "been there, done that", for many end users, such as car manufacturers, and the "Who's Who" of food chains.
<Cinswen> Do you have any plans, intentions, or deals pending that contain any convertible debentures / or any means of share dilution?
<QPIXCEO> While we do not have anything finalized, we are actively looking for funding to help fund the cash flow requirements of our growth plans.
<Cinswen> Do you have any plans for a reverse split / forward split? If so, kindly explain?
<QPIXCEO> Yes, we are in fact planning to do a forward split of 20 to one, after shareholder approval.
<Cinswen> Some of your present clients include Cleveland Golf / Allergan / Hyundai /Lucky Stores / Species 2 / and MGM Grand Hotel in Las Vegas. Do you have any other named clients presently in negotiations?
<QPIXCEO> I would like to give you specifics, but in many cases we sign non-disclosure agreements, until the deal is done. What I can tell you, is that we are target very "Blue-Chip" companies. Our most recent successes have been with Coke-Cola of Brazil, and Sulza-Cruz of Brazil. They are a division of British Tobacco. The PhotoMotionImage's we did for them, were for the "FREE" brand of cigarettes.
Do you plan to expand your present business or acquire any other revenue streams in the form of acquisitions that you can share with us?
<QPIXCEO> We have recently increased our internal production capacities, and have further capital equipment on order that will improve our margins and product efficiencies. If we are successful in our expansion funding, we have targeted synergic companies that would add to both revenues an profits. It would of course depend on which way we go, but if the projection from our distributors come to fruition, we will see substantial revenue increases.
If yes, how will this affect projected earnings?
<QPIXCEO> We have an internal target to get qpi over the $10 million level in the next 12 calendar months.
<Cinswen> The company has been very quiet with news and therefore new investors have stayed away, is the company addressing this and will we see any substantial news soon?
<QPIXCEO> We do plan to accelerate our new releases, as we have several good opportunities that should come to fruition in the near future.
<Cinswen> Who is your Investor Relations Company, is it internal?
<QPIXCEO> We do not have an internal IR department, as we use outside help for this. But having said that, we welcome calls to our CEO.
<Cinswen> What other public companies are your competition?
<QPIXCEO> We are not aware of any other public companies that compete head to head with us in our markets.
<Cinswen> When will you release a PR announcing to 20-1 split?
<QPIXCEO> We do not know the answer at this point, and will let the market know as soon as we can.
<Cinswen> 20-1 forward split will put the stock at such low levels that it will be very hard to convince institutional buyers, any thoughts? and brokers to recommend the stock.
<QPIXCEO> Yes, our goal in the forward split will be to increase liquidity and to increase shareholder value.
<Cinswen> When do they expect to file 10k and will they avoid the "E" also will authorized be increased for F/S?
<QPIXCEO> the 10k will be filed shortly, and we do not have plans yet to increase the authorized.
<Cinswen> Explain how you do a 20 for 1 with 200 million authorized and o/s over 10 million and not increase authorized?
<QPIXCEO> You are correct, we will of course have to increase the authorized proportionately.
<Cinswen> Is there anything you'd like to say in closing?
<QPIXCEO> We would like to thank our shareholder for their continued and ongoing support of QPI, and we are doing our best to increase share holder value.
Thank you from the CEO John Capezzuto and the President Chris McKee
<Cinswen> Thank you so much for joining us here.
<TJ^> Thanks John / Chris
<QPIXCEO> Good Bye |
