MRPS recap:
MICROPHONICS - MRPS
NASDAQ SMALL CAP: MRPS
52 WEEK HIGH: 2 11/16
52 WEEK LOW: 3/64
CURRENT PRICE: 1 1/2
SHARES OUTSTANDING: 10,000,000 (estimated)
FLOAT: 4,000,000 (estimated)
AVERAGE VOLUME: 140,000
TODAY'S VOLUME: 646,000
AVERAGE DAILY VOLUME LAST 10 TRADING DAYS: 1,904,760 shares/day
COMPANY CONTACT:
Microphonics, Nashville
Myles Izikoff or Jimmy Gayle or Bud Thorpe,
615/871-4000
ABOUT THE COMPANY:
Microphonics, Inc. (OTC BB: MRPS) has developed a high-tech mechanical ultrasound diagnostic devise that detects the presence of ultrasonic sound waves and translates those waves for the human ear. Known as the Ultraphonic Detector, this hand-held device is so exact that it can detect a hole half the thickness of a human hair. Not only can it pinpoint and identify leaks (pressurized, non-pressurized and vacuum), it can predict mechanical malfunctions and certain electrical problems as well. Perhaps the most remarkable benefit of the equipment is that it warns of impending trouble before a costly malfunction occurs.
Ultrasound, as a technology, cannot be patented. Microphonics' unique ''signature sound'' method is currently in the patent-pending stage. The company presently holds the following trademarks: Microphonics TM, Ultraphonics TM, Soundlogic TM. Microphonics believes that units produced by its competitors including CTRL, do not produce the quality of the results of our current units, which have gone through five(5) generation changes.
Microphonics has assembled a unique trio of divisions that unite the Company's ultrasound hardware with software applications. The Microphonics Division develops and markets The Microphonics Automotive Diagnostic System(A07) to the automotive and motor sports industries. The Ultraphonics Division develops and markets The Ultraphonic Detector(Model 111RCK), a hand held precision test device designed for industrial use. The Soundlogic Division develops software which both refines and elevates mechanical ultrasound diagnostics to state-of-the-art technology.
MANUFACTURING FACILITIES:
Microphonics A07 automotive unit is currently manufactured by Bulova Technologies L.L.C. in Lancaster, PA, an established leader in the electronics manufacturing field. Microphonics 111RCK industrial unit is currently manufactured by U.M.M. Electronics in Indianapolis, IN, one of the world's leading providers of electronic manufacturing services. U.M.M. follows Pre-Production Quality Assurance (PPQA), Good Manufacturing Practices(GMP), and ISO 9002 requirements.
RECENT CONTRACTS:
On Jan. 14, 1999--Microphonics announced they had entered into a contract to supply Ultrasound diagnostic equipment to all of the 6553 Ford Motor Co. [NYSE:F - news] automotive dealers in the US and Canada. The test equipment will be supplied through the SPX Dealer Equipment network under the Rotunda label. Microphonics through its Ultraphonics division, has delivered 22 of its 111R CK diagnostic systems to the first of the 64 GM plants covered under the blanket purchase order with General Motors. The Ultraphonics units retail at $2950.00 each. Projections call for each plant to purchase 20 to 40 units, depending on plant size.
On Jan. 28, 1999--Microphonics, through its Ultraphonics division, received a blanket purchase order for ultrasound diagnostic equipment from General Motors Corp [NYSE:GM - news]. The blanket purchase order covers all 64 plants within General Motors North American operation. On-site training has begun and will continue throughout the year. The Ultraphonics division of Microphonics is at the forefront of both preventative and predictive maintenance within any industrial setting.
On Feb 10, 1999--Microphonics announced that it entered into a contractual agreement with F&M MAFCO Inc. as a flagship distributor of the Ultraphonics 111RCK Ultrasound diagnostic system. F&M MAFCO is a 53 year old company specializing in providing tooling and equipment to the paper, petrochemical, power, steel, heavy construction and industrial maintenance marketplace. The contract calls for an initial order of 100 units, 50 of which have already been delivered. A year contract will then take effect, calling for purchase of 75 units per month. The retail price of the 111RCK is $2,950.00.
On Feb. 23, 1999--Microphonics received a purchase order from SPX Lowener OTC Tool GMBH in Langemfeld, Germany. Microphonics has begun supplying Microphincs Model A07,S to them for shipment to Ford Motor Company and their 9700 European dealers. The units carry the Ford FSE logo. The instructions manuals have been translated into 17 different languages.
On March 2, 1999, Microphonics agreed to supply ultrasound equipment and technical support to the NASCAR Winston Cup Series, NASCAR Busch Series, and NASCAR Craftsman Truck Series. Microphonics and NASCAR are well matched given the High Tech applications available in all the NASCAR series. Jimmy Gayle (CEO Microphonics) said, ''NASCAR is an excellent fit with Microphonics. Our relationship with the automotive industry allows us to perform additional R&D work in one of the most high tech environments available today. Microphonics' synergistic approach with NASCAR has pushed us to the leading edge of the ultrasound market place. This partnership has given us the opportunity to work with some of the giants of the industry.
FUTURE CONTRACTS:
In addition to previously announced contracts, Microphonics is in negotiations with thirty-seven(37) major companies worldwide. Microphonics is in the midst of sustained growth that, the company believes, will culminate into an extended period of profitability well into the next decade.
OTHER CONTINGENCIES EFFECTING SHARE VALUE:
In 1998, Microphonics issued approximately 1.4 million shares to an investment banking firm in connection with raising funds for the company. The company does not believe the firm performed its obligations and an NASD arbitration proceeding is pending. Legal action is also being pursued by Microphonics. The company believes all of theses shares have been sold. If the Company is successful in the current proceeding, the Company should receive the current market value for the return of the 1.4 million shares.
FINANCIAL INFORMATION:
No Financial information has been released to the public as of the date of this report. The company has informally responded to financial questions stating that the company has been operating in the black over its recent history. Financial infromation has been promised to be released by the company around the second week in March, 1999. Shortly thereafter the Company has stated their intention to issue forward looking financial projections based on the contracts and negotiations currently being realized. The increased sales and resultant revenue over the last several months are expected to be accretive to already positive earnings. |
