Brown Disc Products continues to pursue business strategy.COLORADO SPRINGS Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. , Colo.--(BUSINESS WIRE)--Sept. 27, 1996--Brown Disc Products Co. Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :BDPC) today announced the company is continuing to pursue its business strategy of seeking expansion and diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of its existing operations notwithstanding the recent termination of a proposed merger between the company and Kimbrough Computer Sales Inc. 3SI Inc. Brown Disc is engaged in the business of marketing magnetic data storage products for computers and the duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun) 1. the act or process of doubling, or the state of being doubled. 2. and packaging of software media for various software developers. The company has sufficient capital to sustain its operations as management pursues other opportunities for diversification. Brown Disc will be launching its Internet software distribution site in the very near future to allow its current duplication customers to sell and distribute their software over the Internet. Brown Disc will host and manage this site at www.browndisc.com. The company is also working on a cable TV software distribution strategy in which it plans to deliver software via a cable download to those customers who have cable modems cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. . The company is seeking to joint venture with major cable carriers, a 24-hour cable software channel in which software distribution customers show the features of their particular software product to then be downloaded via Brown Disc's cable distribution site. The company believes the current introduction of cable modems offers potential for growth in distribution. In addition to its software distribution strategy, Brown is exploring the possibility of obtaining rights to manufacture and produce the new LS120 diskette The official name for the floppy disk. See floppy disk. diskette - floppy disk . The LS120 diskette is a new 3.5" floppy diskette developed by Compaq Computer and 3M which stores 120MB of data. Compaq Computer is currently including the new 3.5" drives in several of its current PC lines. The 3.5" drive is a special drive that uses this new diskette and also will read 1.44MB floppies. Brown Disc believes this new technology will challenge Syquest- and Iomega- Type applications. Brown Disc is still working closely with its investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. on possible acquisition strategies which fit these distribution models, and has identified at least one potential acquisition on which the company is currently conducting due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. . The company will decline further comment until and definitive agreement, if any, is reached. Brown Disc will file an extension notice for its 10K report, due Sept. 28, 1996, which is expected to be filed before Oct. 15, 1996. This extension is required for completion of audited financial statements that reflect numerous transactions during the last fiscal year, involving the restructure and compromise of debt obligations and various capital stock transactions, previously reported in the company's interim filings with the Securities and Exchange Commission. Brown Disc has made significant progress in improving its balance sheet since new management assumed control in late 1995. Net income for the last fiscal year, however, was adversely affected by a sales decline and non-recurring charges for capital stock issuances in raising additional capital and debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: , partially offset by a gain on debt forgiveness Forgiveness Angelica, Suor is forgiven by the Virgin Mary for ill-considered suicide. [Ital. Opera: Puccini, Suor Angelica, Westerman, 364] Bishop of Digne . The company believes taht its capital restructuring has positioned the company to show future improvement in results of operations as revenues from expansion and diversification activities add to the company's core business. Certain information herein includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of applicable securities laws that involve risks and uncertainties including, but not limited to, the sufficiency of financial resources, economic, competitive and technological factors affecting the company's revenues, operations, markets, services and prices, and other factors described in prior filings with the Securities and Exchange Commission. Actual results could differ from those suggested or implied by any forward-looking statements as a result of such risks. CONTACT: Brown Disc Products Co., Colorado Springs Ronald H. Cole, 719/593-1015 Fax: 719/590-7466 rcole@ix.netcom.com |
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