Cycomm International Reports Mid-Year Operating Results; Report from President, James Bland III.Business & Technology Editors MCLEAN, Va.--(BUSINESS WIRE)--Aug. 20, 2002 Cycomm International Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CYII CYII Canal de Isabel II (water supply for Madrid, Spain) ), a developer and manufacturer of rugged mobile computers and computing computing - computer systems, announced its mid-year fiscal results. Revenues for the six months ended June 30, 2002 totaled $969,624, while the company reported a net loss of $2,941,974, or $0.04 per share, which included a one-time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $998,874 in the second quarter. James Bland, President and COO, stated, "Since joining Cycomm several months ago I, along with our management team, have begun several strategic initiatives to improve the company's competitive position and financial stability. The management team has focused on four broad areas of the company's operations: Manufacturing, Acquisitions and Alliances, R&D and Sales. We have made significant reductions in overhead and expenses across all areas of the company. We are seeing the benefits from these cost savings in the third quarter. These changes have also increased Cycomm's manufacturing efficiency and streamlined our operations. Other changes, we believe, will begin to show positive results in the long term." Manufacturing: Cycomm has analyzed its manufacturing cost structure and benchmarked operations against a variety of companies large and small. Based on this analysis, the Company determined that it could achieve significant cost savings by outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. the manufacturing of sub-assembly components and by relocating the final assembly processes to the customer service facility in Melbourne, FL, where maintenance and repair technicians are qualified to assemble its products. Cycomm has closed down the Canadian facility and made the transition to Melbourne, FL on June 28, 2002. Acquisitions and Alliances: Historically, Cycomm has focused its business strategy very narrowly on essentially one product line (PC Mobile) and one vertical market (Police). However, customers for rugged mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings solutions are found in a variety of other markets and are seeking a broader range of hardware and software solutions than Cycomm has offered in the past. Cycomm is continuing discussions with DMData regarding a potential acquisition. This would provide Cycomm with a new software product line that the combined company could sell through existing sales channels and allow the company to offer an end-to-end solution (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. to customers. To further enhance competitive position in the rugged computing market, Cycomm continues to explore potential alliances and joint ventures with other companies in this segment. Such alliances would allow the Company to respond to a wider range of customer requirements within the public safety market as well as other rugged computing markets. Research & Development: Cycomm believes that its expertise in designing and developing rugged computing products is one of the Company's core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Sales: Revenue is the lifeblood life·blood n. 1. Blood regarded as essential for life. 2. An indispensable or vital part: Capable workers are the lifeblood of the business. of Cycomm and the Company has been working aggressively to close sales with key accounts. The Company recently announced sales to police departments in Philadelphia, PA, Rensselaer, NY and Howell Township Howell Township may refer to:
Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ in selling to the utilities market with a sale to Sierra Pacific Power. The actions taken in the other strategic areas outlined above are also aimed directly at improving success in the sales arena. Improved manufacturing efficiency translates into competitive pricing, faster delivery and better quality. Acquisitions and alliances should give the Company a larger sales team with more products to improve the solutions the team can offer to customers. Mr. Bland continued, "We expect that these changes in the operations and strategic direction of the company will result in stronger, more predictable sales, improved profitability and a more robust product line to meet the needs of our current and future customer base. I am confident about the future prospects of the Company and look forward to reporting further positive developments." About Cycomm International Cycomm International Inc. develops and manufactures a tough and rugged "element proof" mobile computer system under the trade name PCMobile. The units' fully rugged design and upgradeability make it the most cost effective mobile computing solution in the market. Its high bright screen automatically adjusts to all lighting conditions. Its unique integrated removable backlit An LCD screen that has its own light source from the back of the screen, making the background brighter and characters appear sharper. keyboard enables officers to type reports from an ergonomically correct position. Clients today include more than 300 law enforcement, public safety, utility and military organizations. For additional information visit www.cycomm-mobile.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow, market acceptance risks, technical development risks, seasonality and other risk factors detailed in the company's Securities and Exchange Commission filings. |
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