Digital Angel Corporation Launches New Investor Communications Initiative and Discusses Previously Provided 2007 Revenue Guidanc
15 3월 2007 - 6:09AM
Business Wire
Digital Angel Corporation (Amex:DOC), an advanced technology
company in the field of rapid and accurate identification, location
tracking and condition monitoring of high-value assets, announced
today the launch of a new initiative to improve communications with
the investor community. With the previously announced January 2007
management team additions of Thomas J. Hoyer, Chief Financial
Officer, and Allison F. Tomek, Vice President of Investor Relations
and Corporate Communications, the Company is refocused on an active
investor relations program to increase awareness and build
shareholder value. As part of the Company�s outreach strategy, it
held an analyst call today to discuss its previously released
revenue guidance and growth prospects for 2007, as discussed on the
Company's March 5, 2007 conference call. As previously announced,
the Company expects full year 2007 revenue between $73 and $78
million, based primarily on growth in its companion pet
identification business, livestock tagging business and search and
rescue beacon equipment (SARBE) business. Digital Angel President
and Chief Executive Officer Kevin McGrath commented, �As I
mentioned last week in our financial results conference call,
building on our investments in the business in 2006, the management
team and I are very positive about the Company�s performance for
2007. We foresee significant opportunities as we capitalize on our
leadership positions in the companion pet, livestock tagging and
SARBE businesses. While there remain certain elements of risk, we
are comfortable that our current 2007 revenue guidance of $73 to
$78 million is achievable, and we are focused on maximizing
shareholder value for the long-term.� The Company provided analysts
highlights of the growth opportunities discussed on the financial
results conference call, including: Companion Pets To date, the
Company has received orders for 2.5 million chips from
Schering-Plough, exceeding the total number of pet chips sold in
2006; additionally, the Company has received forecasted orders from
Schering-Plough for deliveries through August 2007 that are more
than double total 2006 sales of 1.7 million chips. Schering-Plough
is investing significant dollars in its new HomeAgain� Proactive
Pet Recovery Network. Schering-Plough negotiated a lower price per
chip in the new contract, but the Company expects increased volumes
to drive operating efficiencies and therefore improve margins
longer-term. The Company expects growth in the sales of scanners as
veterinary offices and animal shelters upgrade to the universal
scanner. Livestock Tagging The Company has hired new management and
additional sales representatives, and reorganized its sales
operation to improve overall performance. The Company expects
double-digit percentage growth in visual and electronic tag sales
on a year-over-year basis. The Company expects strong sales in
Latin America, specifically Argentina. States are increasingly
looking to mandate electronic tagging, primarily targeting the
dairy cow industry, although the timing and ramification of this is
unclear. The Company is investing $1.3 million in sales and
marketing to capitalize on 2006 trends that are continuing into
2007. Radio/GPS The Company expects to receive orders for SARBE in
2007 that, due to the timing of contract awards, didn�t materialize
in 2006. SARBE revenue is expected to be heavily weighted towards
the second half of 2007. The McMurdo acquisition, which is
scheduled to close at the end of this month, is expected to add at
least $8 million in revenue in 2007. McMurdo recently won an $8
million contract to supply radios to the U.S. Coast Guard. By
year-end at McMurdo, the Company expects cost reductions as it
brings manufacturing in-house and anticipates savings in general
and administrative expense. In order to complete the acquisition of
McMurdo, the Company intends to secure additional financing,
potentially in the form of an accounts receivable line. The
Company�s initial $2 million investment in the U.S. Air Force
development contract for the URT 33 radio could bring significant
revenue later this year and in 2008 if the Company wins a portion
of the production contract. The Company is taking steps to reduce
general and administrative expense at Outerlink and decrease the
overall loss, and outline a plan to reach profitability. Potential
Transaction between Digital Angel and Applied Digital Discussions
continue to occur between the management teams and boards of
directors of Digital Angel and Applied Digital to determine whether
a transaction between the two companies delivers value to
shareholders. Management Team Additions During the analysts call,
Mr. McGrath also introduced the Company's new CFO, Mr. Hoyer and
its new Vice President of Investor Relations and Corporate
Communications, Ms. Tomek. Mr. Hoyer joined the Company on Jan. 2,
2007, and has an extensive background in successfully building and
leading finance and accounting organizations. Prior to joining
Digital Angel, he held numerous high-profile finance positions in
both the private and public sectors. Most recently, Hoyer served as
Executive Vice President and Chief Financial Officer of NationsRent
Companies, Inc., a $700 million construction equipment distribution
and services company, where he supported the Board of Directors and
senior management team by leading the company through numerous
complex transactions, including the issuance of more than $400
million in public debt. Ms. Tomek joined the Company on Jan. 8,
2007, and is the primary liaison to the investment community and
media. Tomek brings nine years of investor and media experience
with small and mid-cap companies. Most recently, she served as
director of investor relations and corporate communications for
Andrx Corporation, a specialty pharmaceuticals company, where she
managed all aspects of the company's investor and public relations,
and internal communications. About Digital Angel Corporation
Digital Angel Corporation (www.DigitalAngelCorp.com) develops and
deploys sensor and communications technologies that enable rapid
and accurate identification, location tracking, and condition
monitoring of high-value assets. Applications for the Company�s
products include identification and monitoring of humans, pets,
fish, poultry and livestock through its patented implantable
microchips; location tracking and message monitoring of vehicles
and aircraft in remote locations through systems that integrate GPS
and geosynchronous satellite communications; and monitoring of
asset conditions such as temperature and movement, through advanced
miniature sensors. Digital Angel Corporation is majority-owned by
Applied Digital Inc. (Nasdaq:ADSX), which also owns a majority
position in VeriChip Corporation (NASDAQ:CHIP). This press release
includes forward-looking statements, including statements regarding
(i)�the Company�s growth forecast for its products; (ii) the
expected growth at Signature industries; and (iii)�the Company�s
expectations regarding receiving government approvals for the
McMurdo acquisition, the expected source of additional funding for
the acquisition, the timing of the closing of the McMurdo
acquisition and its impact on the Company's financial results.
These forward-looking statements may be affected by the risks and
uncertainties in the Company�s business. This information is
qualified in its entirety by cautionary statements and risk factor
disclosures contained in the Company�s Securities and Exchange
Commission filings, including the Company�s annual report on Form
10-K for the fiscal year ended December 31, 2005, as amended, and
its quarterly reports. The Company wishes to caution readers that
certain important factors may have affected and could in the future
affect the Company�s actual results and could cause the Company�s
actual results for subsequent periods to differ materially from
those expressed in any forward-looking statement made by or on
behalf of the Company. Such risk factors include generally, but are
not limited to, the following: the Company's ability to
successfully implement its business strategy; the Company's
expectation that it will continue to incur operating losses; the
Company's ability to fund its operations and to pay its debt
obligations; the impact of Applied Digital's voting control over
the Company; conflicts of interest among Applied Digital, VeriChip
and the Company; the Company's reliance on a single source supplier
for its implantable microchip; the Company's ability to compete as
its competitors improve the performance of and support for their
new products, and as they introduce new products, technologies or
services; the negative impact of the expiration of patents in 2008
and 2009 relating to the implantable microchip technology; the
Company's ability to successfully defend itself against
infringements of our patents; the Company's ability to comply with
current and future regulations relating to its businesses; the
impact of technological obsolescence; the Company's reliance on
government contractors; the loss of Schering-Plough as the
exclusive distributor of the Company's products; the Company's
dependence on a small team of senior management; risks of foreign
operations; the impact of the write-off of goodwill and other
intangible assets; the impact of new accounting pronouncements; and
the Company's ability to maintain proper and effective internal
accounting and financial controls. With respect to forward-looking
statements regarding the McMurdo acquisition, the following
additional risks: the ability of the parties to the acquisition
agreement to satisfy their respective closing conditions; and the
Company's ability to successfully integrate McMurdo's operations
into its operations. The Company can offer no assurances that any
projections, assumptions or forecasts made or discussed in this
release will be met, and investors should understand the risks of
investing solely due to such projections. The Company undertakes no
obligation to revise any forward-looking statements in order to
reflect events or circumstances that may arise after the date of
this press release.
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