Sofame is Poised for Growth and Profits
What We've Done to Control Costs and Reposition Ourselves for Future Expansion
Over the past year, your board and management decided that the key to sustaining shareholder value at Sofame was to take difficult short term operational and financial decisions in order to keep the company safe during difficult economic conditions. Key investors, suppliers and representatives came together to finance the company when necessary, and management worked to convert debt to equity and strengthen the balance sheet. Fixed expenses were reduced to a bare minimum - and so was the level of permanent staffing - in order to conserve cash. The old fixed operating cost model was replaced by variable cost relationships which give us access to engineering, drafting, electrical and controls as well as production expertise when - and where - we needed it. This has allowed Sofame to move forward in the first quarter of its 2012 fiscal year with well-engineered, profitable projects which will produce the cash flow required for Sofame to become self-sustaining.
Our list of industrial and institutional prospects, and our network of sales representatives expect Sofame to successfully execute projects in 2012 and we will do so. Since August, Sofame has closed 4 orders worth $1.73 million at good margins, and the delivery of these projects will lead to more orders. Sofame has focused on selling projects that payback under three years fully installed. That is what clients require in an environment of tight capital budgets.
I can honestly say to all stakeholders that:
- the quality of our documentation and engineering drawings has never been better.
- We have recruited new candidates for the board of directors who are experienced operating managers, and who are accessible because they live near Montreal. They share my philosophy that quality execution is the key to building a profitable, growing business.
- Improving operations and execution will be a preoccupation of your board over the coming year.
The market for Sofame's products is international:
- I personally presented our product line to a major Chinese state owned utility in June 2011 at their invitation.
- We are also developing other vertical markets in China with a sales organization that represents an important European gas-fired boiler line.
- Sofame has finalized its agreements with our partner, Soffimat, regarding Sofame Europe, our subsidiary in Paris. We are planning a significant roll-out to Soffimat's network in the first six months of 2012.
These are the kinds of tangible, sales-building initiatives that your board and management can undertake now that the financial situation has stabilized. Thankfully, the demand for industrial energy efficiency products is on the increase in most countries, and Sofame is positioned to become a part of this growing marketplace.
Sofame intends to communicate more effectively...(click here for more)
Certain representations herein may constitute "forward looking statements" which, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the control of Sofame Technologies Inc. ("Sofame"). Such risks include, but are not limited to, the impact of general economic conditions, general conditions in the boiler and heater industry, changes in the regulatory environment in the jurisdictions in which Sofame does business, stock market volatility, changes to the competitive environment, and other risks cited in Sofame's public filings.
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