BELLEVUE, WA, Oct 5 /PRNewswire-FirstCall/ -- The Tradeshow Marketing Company Ltd. (Pink Sheets: TSHO), a direct sales company that represents and markets unique consumer products in diverse sales environments, today announced results for the Company's fiscal year 2010 ended May 31, 2010. The Company also announced updates to its business progress, including further orders for its g-Spout(R) household utensil product.
Revenue for fiscal year 2010 was $32,085 as compared to $65,760 for fiscal year 2009. Fiscal 2010 revenue reflects sales through May 31, 2010, prior to commencement of the Company's catalog sales programs and other g-Spout initiatives, which, subsequent to the fiscal year end, now exceed $550,000. The decrease in 2010 revenue over the prior year reflects the Company's strategic transition to a business model focused on identifying and marketing unique consumer products through direct-to-consumer retail opportunities. Recognized revenue was derived primarily from trade show demonstration sales and test campaign activity for the Ultimate Squeegee. The Company's second test campaign and catalog sales program launch for the g-Spout product will be included in financial reports for the first and second quarters of fiscal 2011.
Net loss for 2010 was $614,012, or $(0.03) per share as compared to a loss of $249,380, or $(0.01) per share in 2009. Net loss for fiscal year 2010 reflects increased costs for product marketing and advertising for the Ultimate Squeegee product test as well as legal, product development, manufacturing and marketing services in preparation for the g-Spout test campaign launched after the fiscal year end. Cash and cash equivalents at May 31, 2010, was $700,540.
"Fiscal 2010 was a transitional year for the Company, during which we began focusing on direct product sales and expanding our unique consumer product capabilities to better serve product developers seeking to bring their concepts to market," stated Luniel de Beer, President and CEO of Tradeshow Marketing. "These efforts are now beginning to bear fruit in fiscal year 2011 as we have successfully introduced another key consumer product, the g-Spout, through the catalog sales channel. We are now leveraging that success to propel the g-Spout toward larger mass market retail opportunities through efforts such as our intended partnership with ARG Manufacturing. We also continue to pursue opportunities by targeting additional end markets for the Company's first product, the Ultimate Squeegee, by advancing our efforts towards specialty retail markets. We look forward to gaining additional market traction with our existing products, while working to expand our portfolio of new products as led by our recently hired VP of Marketing and Product Management, Paul Curhan."
Business Updates
Subsequent to the year end, the Company launched test campaigns and catalog sales of the g-Spout under an exclusive global license with the product's developer. The g-Spout campaign continues to be developed, while Tradeshow increases sales through wholesale catalog channels and launches the product into broader retail sales channels through its relationship with ARG. Wholesale orders to date now total more than $550,000, which consists of multiple re-orders due to strong demand for the product. These orders are being delivered and revenue recognized in the fiscal first and second quarters of 2011, ending August 31 and November 30 respectively.
The Company expects the majority of total revenue from the orders to be recognized in the second quarter. These orders will provide the Company its first substantial product revenue under its new business model. In addition, the Company has signed a non-binding letter of intent with ARG Manufacturing for U.S. retail representation and expanded manufacturing capacity of the g-Spout in preparation for its anticipated launch in specialty retail store chains in the coming months. Production capacity at the Company's manufacturing providers has been increased in preparation for increased product distribution related to retail launch as these customers begin to carry product.
Additionally, in August, the Company was notified that the U.S. patent applications related to the g-Spout have been approved for issuance, and, as of September, the patents issued. The Company is advancing patent applications in a number of other countries and markets where it believes substantial market opportunity exists and the Company intends to market the g-Spout, directly or through partnerships, under its global exclusive rights agreement.
For more information about Tradeshow Marketing, please visit the Company's web site at http://www.tsho.com/. Shareholders of Tradeshow Marketing who would like to be added to the Company's email distribution list can send their contact information to ir@tsho.com.
About The Tradeshow Marketing Company
The Tradeshow Marketing Company Ltd. is a publicly traded consumer-products company focused on the development and distribution of unique products that have broad appeal and improve the lives of consumers. The company operates a Direct to Consumer (D2C) Commerce business in North America, and markets and sells products through various channels such as trade shows and exhibitions, Direct Response Television (DRTV), printed catalogs and magazines, retail stores, and product-specific e-commerce web sites. The company was established in 2003, and is headquartered in Bellevue, Washington.
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Safe Harbor Statement
This release contains "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, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected", "anticipates", "draft", "eventually", or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the company's SEC filings.
Tradeshow Marketing Company Ltd.
CONTACT:
Investor Contact:
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Tradeshow Marketing Company
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