BELLEVUE, WA — (Marketwired) — 02/17/16 — CoroWare, Inc. (OTC PINK: COWI) today issued the following shareholder update letter from Lloyd Spencer, CEO and Chairman.
To our valued shareholders:
As President and CEO of CoroWare, I want to thank you again for your continued patience and support. We have received a number of recent shareholder enquiries concerning our development plans for 2016 and onward. In that vein, I am pleased to offer you further guidance on our progress to achieve sustainability in 2016 through our efforts to achieve steady revenue growth and refinance outstanding debt.
Achieving Steady Revenue Growth
In fiscal years 2014 and 2015, CoroWare rapidly grew its revenues by focusing its Solutions Integration sales efforts on delivering consulting services and outsourced managed services. In fiscal year 2015, we anticipate reporting that CoroWare–s gross revenues exceeded $5 Million.
Gross revenues were able to grow rapidly as CoroWare initially focused its sales efforts on delivering R&D Support consulting services engagements, next on Supplier Support Desk consulting services engagements, and most recently on Marketing Support consulting services.
In fiscal years 2016 and 2017, we anticipate further growth in our revenues and improving our gross margins by delivering services, solutions, and products in rapidly growing industries such as Mobile Service Robotics and Internet of Things (IoT). In fiscal year 2016, CoroWare–s management team is working toward a goal to realize $10 Million in gross revenues, although we cannot say with any certainty that our plan will successfully achieve that objective.
Refinancing Outstanding Debt
In fiscal years 2006, 2007 and 2008, the Company incurred over $3 Million in convertible debt with YA Global Partners, also known as Yorkville Advisors and formerly known as Cornell Capital.
As economic conditions deteriorated in fiscal years 2008 through 2012, and as CoroWare struggled from 2008 through 2013, CoroWare could not effectively service nor refinance its convertible debt.
The opportunity to refinance CoroWare–s convertible debt finally presented itself as CoroWare achieved strong revenue growth in fiscal years 2014 and 2015. The path to achieving this objective began with CoroWare–s Board of Directors authorizing a Stock Repurchase Program on November 4, 2015 in order to repurchase up $0.5 Million of Its common shares of the Company–s issued and outstanding common stock over a two-year period.
Next, CoroWare–s Board of Directors began the process of establishing forbearance agreements with significant convertible debt holders such as YA Global Partners, thereby stopping the conversion of convertible debt into CoroWare common shares.
These steps were critically necessary for CoroWare to begin discussions with credible long-term investors who make large long term and favorable investments that can be used to help CoroWare:
reduce financing costs and improve profitability
fund R&D initiatives in mobile robotics and IoT that can accelerate new revenues
finance strategic joint venture and acquisition opportunities
In this regard, CoroWare is in discussions with investment bankers, with a view to obtaining conventional debt and equity finance, and will make further announcements along with Form 8-K filings with the Securities and Exchange Commission.
While CoroWare–s Board of Directors cannot make any guarantees — nor say with any certainty — that these steps will be successful, they were and are necessary for achieving sustainable profitability and steady revenue growth in fiscal years 2016 and 2017.
In Closing
Speaking on behalf of CoroWare–s employees and management team, we believe that we have the talent, expertise and approach necessary to successfully grow our business. In that vein, we would like to again thank our Shareholders for their continued support, and we look forward to reporting our progress to our Shareholders as we continue to execute on our plans.
Lloyd Spencer
President and CEO
CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:
Business Consulting Services: R&D engineering services; business process workflow; software architecture, design and development; content management; console, PC and online game production; marketing coordination and management.
Robotics and Automation: Custom engineering such as visualization, simulation and software development; and mobile robot platforms for university, government and corporate researchers.
CoroWare–s customers are located in North America, Europe, Asia and the Middle East, and span multiple industry sectors — including universities, software and hardware product development companies, and non-profit organizations. For more information, please visit .
Forward-Looking Statement
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company–s periodic reports filed with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
CoroWare Investor Relations
(800) 641-2676, option 3
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