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Veltex expects to hire additional sales representatives
05 Mar '08
3 min read
We continue to work diligently with our CPA firm to complete the task. Our Independent Auditor, Mike More, CPA is a member of the Public Companies Accounting Oversight Board (PCAOB).
Sale of the manufacturing operations was completed as of December 31, 2007 and will be shown as a discontinued operation in the 2007 financials.
This sale will provide working capital for support and expansion of the remaining operations. Principal terms of sale of the remaining assets are assumption of liabilities, Credit of $15 million to be used by Veltex as partial offsets against future purchases, preferred customer prices, and favorable payment terms.
Specific factors influencing sale of the manufacturing operations include substantial machinery repair and
replacement costs, expiring tax incentives, exchange fluctuations, and costly travel and communications requirements. A gain/loss may be realized on the sale, but the amount has not yet been determined by the audit firm.
Mr. Matin, Company CEO expressed great satisfaction with the restructuring and redirection of the Company. "This has been a long and arduous process, and at times frustrating and painful," he said.
"But it was essential," he added, "to make these hard assessments and adjustments to ensure that Veltex could compete profitably in a global economy which is becoming increasingly changing and demanding."
He noted that the streamlined business model with its emphasis on distribution would enable the Company to better respond to fashion changes, reduce delivery times, provide improved customer service, and attract new customers. It will also allow the Company to produce timely audits and become fully reporting.
Mr. Matin also reported that the new Veltex was expected to achieve the same level of profitability as the previous integrated Veltex in future. "We are predicting revenues of $10 to $15 million in 2008," he said, "and expect to achieve customary industry level of profitability." He noted that the current inventory is adequate for the expected summer sales.
Sale of the manufacturing operations was completed as of December 31, 2007 and will be shown as a discontinued operation in the 2007 financials.
This sale will provide working capital for support and expansion of the remaining operations. Principal terms of sale of the remaining assets are assumption of liabilities, Credit of $15 million to be used by Veltex as partial offsets against future purchases, preferred customer prices, and favorable payment terms.
Specific factors influencing sale of the manufacturing operations include substantial machinery repair and
replacement costs, expiring tax incentives, exchange fluctuations, and costly travel and communications requirements. A gain/loss may be realized on the sale, but the amount has not yet been determined by the audit firm.
Mr. Matin, Company CEO expressed great satisfaction with the restructuring and redirection of the Company. "This has been a long and arduous process, and at times frustrating and painful," he said.
"But it was essential," he added, "to make these hard assessments and adjustments to ensure that Veltex could compete profitably in a global economy which is becoming increasingly changing and demanding."
He noted that the streamlined business model with its emphasis on distribution would enable the Company to better respond to fashion changes, reduce delivery times, provide improved customer service, and attract new customers. It will also allow the Company to produce timely audits and become fully reporting.
Mr. Matin also reported that the new Veltex was expected to achieve the same level of profitability as the previous integrated Veltex in future. "We are predicting revenues of $10 to $15 million in 2008," he said, "and expect to achieve customary industry level of profitability." He noted that the current inventory is adequate for the expected summer sales.
Veltex Corporation
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