George and all you nice people out there in Cyberspace.
I thought it might be a good idea to try to explain to some of you shareholders some of the issues you raise, as I have had a chance to read them, and to get over to you some of the thinking of the management of DCI.
From February of last year, myself and our group joined DCI as the Cardcall Group of companies. We brought into the company both the UK and Canadian buisnesses, mainly involved in the prepaid phone card markets. We also brought in a dedicated team of proffessionals that have many years of telecom experiences.
We also introduced CYBERFAX.
You should all be aware that Cyberfax is a company that is launching a FAX OVER THE INTERNET service that is at the cutting edge of the latest in high technologies telecomms, and as any new and unique product, needs time and testing to come to market successfully. There is no room for error, as you can well imagine, a person or organization sending a fax via the Cyberfax network system, wants to see the fax arrive in complete and perfect delivery ... on first attempt.
The network hardware that needs to be installed in contries around the world is complicated and unique, and has to be installed in areas and countries that speak a jumble of languages, have to deal with hard beaurocracies , details of which I do not even need nor wish to mention. Yet, serious progress has been made, and the company is about to break out into the marketplace, and revenues will then start to flow.
As far as Cardcall UK was concerned, we had secured the BEST of licenses, and distribution deals as is evidenced by the sale of the WH Smith contract to Smartalk for $9 million, which has now grown to well over $11 million (current value of the Smartalk shares) There are industry projections that show the Smartalk shares going as high as $45 per share, that would equate to over $18 million........!
The decision was taken to sell, take the profit, and move on. The sale of the WH Smith contract has injected into the company a huge amount of liquid cash, and now enables the company to proceed to fund the various projects that it has focused itself on doing.
1. Expansion of European operations via DCI UK-Europe. In particular, Denmark and Spain into which the company has installed its own switches. As I type, traffic revenues are accellerating in those markets.
2. Expamsion and consolidation of the Canadian sector. This sector of the company will shortly become a major revenue earner for DCI
3. MERGERS AND ACQUISITIONS of telecom companies in related industry sectors....It is this sector of the business which will grow the fastest, and increase both the revenues and margins, which will translate into growth of the share price.
I have stated on numerous previous posts that the aim of the company is to rapidly grow the revenue base. The figures I have mentioned, whilst may seem a dream or exagerated, are realistic and WILL BE ACHIEVED. It is important to note that every potential merger and or acquiisition has to be thoroughly investigated, due diligence has to be performed, and perhaps the most important issue of all, is that the incoming party is happy and content with the deal and will honour their committments to DCI. Only this high level of care and attention will ensure that the board of DCI will proceed with the deals to grow the company.
So if we go into a QP, it is not that we are on vacation, or that business is slack, in fact the opposite is the fact. We are currently working around the clock all week, on several simultaneous transactions, to ensure that the deals before us are properly and proffessionally executed, to the benefit of all parties concerned.
As the first of the press releases is about to come out this week, I take this opportunity to thank Joe Murphy, Larry, Russ, Jack, Dan, Pat and ALL the team for their unending support to the little guy in the field, and hope that the results of our combined efforts reap the benefits to ALL THE SHAREHOLDERS waiting patiently for the story to continue to unravel positively.
January 1998 was a great month for DCI, in terms of new business, increase of value of Smartalk shares, the buyback announcement, the dividend announcement etc, an increase of about 25% in the value of the company's share price, I DO NOT KNOW OF ANY OTHER BB COMPANY THAT CAN CLAIM THIS LEVEL OF ACHIEVEMENT. Lets hope that February and onwards keeps the momentum going on the straight road to continued achievments and unlimited success.
A VERY HAPPY WEEKEND TO ALL.
MJZ |
