Printer Friendly

aeroTelesis Issues Year-End Letter to Shareholders.

LOS ANGELES -- aeroTelesis(TM), Inc. (OTCBB:AOTL) President, Joseph Gutierrez, issued the following year-end letter to shareholders:

Dear Shareholders,

Our fiscal year (March 31) has recently ended, and it is appropriate for me to update you on our latest progress and developments prior to our annual 10-KSB filing which is due in June.

I also want to use this letter as a vehicle to provide you with the assurance and confidence that the Company is making significant strides forward. Our philosophy and focus has always been and continues to be set on building fundamental business value into the Company.

The topics for this letter are as follows:

--1. Acquisitions Update

--2. USM(TM) Developments and Satellite Partnerships

--3. AOTL Stock Activity

--4. Financing from Nations

--5. Expanding the aeroTelesis Team

Acquisitions Update

In my previous letter dated February 8, 2005, I outlined an acquisitions strategy that the Company would pursue for its VOIP (Voice Over Internet Protocol) business division. Today, I am pleased to report that we have signed Memorandums of Understanding and Letters of Intent with three Los Angeles-based companies. Each of these companies has healthy revenues and is profitable. For confidentiality purposes, we cannot disclose the names of these companies until a later date, as we are currently in various stages of due diligence and negotiations with them. Pending the completion of our due diligence and acquisition-related financing (which is now in process), we expect to close one or more of these acquisitions in the near term.

USM Developments and Satellite Partnerships

In early March, we made our most significant USM-related news announcement to date. This was done in conjunction with Photron, the developer of the USM (Ultra Spectral Modulation) technology, and AccelChip (, a renowned chip development partner. Through the extensive involvement of AccelChip, we now have the first set of independent 3rd party assessment for the technology. This is a great foundation for USM to build upon, as world-class technology experts are now observing and working directly with USM. Most notably, the CEO of AccelChip remarked that USM is the most exciting approach in wireless design activity that they have come across to date.

While the USM technology progresses through the chip development stages, the Company has continued to pursue new satellite partnerships in Southeast Asia. Recently, we established a new international alliance with PT Citra Sari Makmur (CSM) in Indonesia. CSM is part owned by PT Telkom, the national telephone company of Indonesia, and is a well respected partner for aeroTelesis to deploy satellite-based USM services to Indonesia -- a country with a population in excess of 200 million people and over 14,000 islands that can certainly benefit from satellite communications. Additionally, the aeroTelesis team continues to work closely with Mabuhay Satellite, its satellite partner for the Philippines -- a country with approximately 100 million people and over 7,000 islands.

AOTL Stock Activity

Over the past 6 weeks, the AOTL stock price has been volatile. However, the stock market activity and price swings in the aeroTelesis stock are something that we do not control. Our dedication and focus remains centered on the long term growth of the Company.

We have suspected that there may be a number of "rogue" traders who have been actively "shorting" our stock. There is an industry term for this type of trading behavior called "naked shorting". This is not a phenomenon unique to aeroTelesis alone. It is something that plagues the market in general, especially for companies listed on the OTC Exchange. Government legislation is being put in place to remedy the problem.

To address the problem of the "naked shorts" in our stock, there are a number of measures that we have been considering. This includes a greater effort to bring more institutional and retail support to the stock. The Company has also retained special litigation counsel to further investigate this matter. But at a more fundamental level, we firmly believe that as our business milestones continue to be achieved and as more value is created for the Company, there will be new momentum to carry the stock price forward regardless of the "rogue" traders.

The Company is optimistic that the dynamics and growth opportunities are excellent:

--Our acquisitions program is on track to help us achieve revenues and profitability in the near term.

--The USM technology is advancing in its chip development process with high level 3rd party assessment and validation being established. Additionally, a series of new, physical USM test demonstrations should be ready by end of summer.

--Our existing USM satellite partnerships will be deepened and new alliances will continue to be pursued.

It is understandable that you may feel anxiety about the Company's stock price. However, this is the time to see that the Company is being built with significant value that will hopefully be properly recognized in the near future.

Financing from Nations

From time to time, we are asked about the sources of funding for the Company. Since inception, our financial support has come from our majority shareholder, Nations Mobile Networks Ltd. ("Nations").

In September 2003, aeroTelesis entered into a loan agreement with Nations for a revolving line of credit up to $1,000,000 for a period of twelve months as a working capital loan. The loan agreement contained an interest provision of 7% to be accrued quarterly. Nations had an option to convert the principal amount of the loan and any accrued interest into restricted common shares of aeroTelesis. Through December 31, 2004, Nations has converted a cumulative amount of $1,054,093 of debt and accrued interest since the inception of the financing commitment. Furthermore, Nations committed to additional financing as an extension of the original agreement. We are very appreciative for their continued support and commitment to our company.

Expanding the aeroTelesis Team

Lastly, I would like to inform you that we are taking immediate steps to expand the aeroTelesis team at all levels: management group, advisory board and board of directors. Since my last shareholders letter, we have identified and met with several individuals who can meet our needs for these areas. Although we have certainly recognized the necessity to build out the team with more expertise and talents, we have often been preoccupied with our immediate business focus on the VOIP and USM platforms. But as the Company is now on the verge of making serious moves on both fronts, it becomes increasingly important for us to strengthen the core team. I expect to have positive feedback for you throughout the next few quarters.

We are moving forward into the new fiscal year with high confidence and enthusiasm. We thank you deeply for your continued interest and support.


Joseph Gutierrez


About aeroTelesis, Inc.

Headquartered in Los Angeles, aeroTelesis is a technology-driven communications company dedicated to providing a portfolio of next generation communication services and offering its customers a more efficient, cost-effective delivery of voice, data and video services on a global basis. The Company's targeted application markets include Voice over Internet Protocol (VoIP), fixed and mobile wireless broadband, and satellite communications. The Company's core technology platform is an exclusively licensed modulation technique known as Ultra Spectral Modulation(TM) (USM). USM is a technology that significantly increases spectral efficiency in wireless applications and provides for high-speed and high-capacity networks at substantially lower cost relative to existing wireless technologies. USM is designed to avoid bottlenecks by providing data transmission channels with higher quality and throughput rates than those of conventional modulation techniques. For more information on aeroTelesis Inc., please visit

Forward Looking Statements

This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, but are not limited to, the Company's growth strategy, future milestones and projected operations. Forward-looking statements are inherently subject to uncertainties and other factors, which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: the Company's ability to develop and commercialize its USM(TM) technology, expand its operations to meet anticipated demand; the ability of the company's technology to achieve anticipated benefits for its customers; ability to secure operating licenses in host countries; anticipated growth of the Company's target markets; unanticipated delays in manufacturing or shipments to customers, and its ability to achieve anticipated sales and profits. The Company refers interested parties to its most recent Annual Report on form 10KSB and its other SEC filings for a description of additional uncertainties and the factors that may affect forward-looking statements. Forward-looking statements are based on information presently available to senior management, and the Company has not assumed any duty to update its forward-looking statements.
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Apr 28, 2005
Previous Article:Symphoniq CEO, Hon Wong to Give a Presentation about Real-User Monitoring at NetWorld+Interop.
Next Article:Ceradyne, Inc. Reports First Quarter 2005 Results.

Related Articles
S corporation distribution regulations.
Board members, CEOs differ on executive compensation issues.
The audit from the inside.
Dean (John Wright) asked to withdraw (by a diocesan review committee).
Deductions for bonus plans: attempting to ensure an accelerated deduction.
Section 404 compliance in the annual report: assessing control deficiencies now is a documented process required of management.
1Q office vacancies nudge higher on Long Island.
Industrial vacancies down, rents up on Long Island.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters