BELLEVUE, WA--(NewMediaWire - Nov 18, 2015) - 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 first thank you for
your continued support.
CoroWare experienced a number of setbacks over the years -- some
due to reduced sales resulting from changing economic conditions
that began in 2008, and some due to financial constraints resulting
from substantial convertible debt financing that began in 2006.
As many of you know, the road to recovery for a business begins
with growing revenues.
In that vein, I am pleased to offer you an update on the revenue
growth that CoroWare has achieved during the first three quarters
of 2015, and to provide you some insights into how we anticipate
growing CoroWare's revenues in the coming months and next year.
FY-2015 Growth via Solutions Integration
Gross revenues improved in fiscal year 2014 and accelerated in
fiscal year 2015 as CoroWare focused its Solutions Integration
sales efforts on delivering consulting services and outsourced
managed services.
For the quarter ended March 31, 2015 ("the Q1-2015 Period"),
CoroWare reported revenues of $798,541, which increased 173.9% from
$291,538 in Q1-2014 ("the Q1-2014 Period"), and gross profit of
$226,479 in the Q1-2015 Period, which increased 284.0% from $58,982
in the Q1-2014 Period.
For the quarter ended June 30, 2015 ("the Q2-2015 Period"),
CoroWare reported revenues of $1,355,239, which increased 246.4%
from $391,213 in Q2-2014 ("the Q2-2014 Period"); and gross profit
of $285,232 in the Q2-2015 Period, which increased 836.2% from
$30,468 in the Q2-2014 Period.
For the third quarter ended September 30, 2015 ("the Q3-2015
Period"), CoroWare reported revenues of $1,364,589, which increased
126.3% from $603,063 in Q3-2014 ("the Q3-2014 Period"), and gross
profit of $319,127, which increased 35.5% from $235,536 in the
Q3-2014 Period.
Gross revenues most grew rapidly in the first and second
quarters of fiscal year 2015 as CoroWare concentrated its sales
efforts on delivering Supplier Support Desk and R&D Support
consulting services engagements. Gross revenues remained
steady during the third quarter of FY-2-15 compared with the second
quarter of FY-2015.
Finally, during the fourth quarter of FY-2015, we anticipate
solid quarter-over-quarter growth of CoroWare's contract services
and outsourced managed services with Microsoft, and growth of new
sales opportunities resulting from CoroWare's technology incubation
group whose focus has been on Mobile Robotics and "Internet of
Things" (IoT).
Future Growth via Technology Incubation
Over the past 12 years, CoroWare has researched new technologies
and developed innovative solutions through its technology
incubation initiatives. In 2004, CoroWare began researching
mobile robotics technologies, and began delivering the CoroBot
product line in 2007 to customers in North America, Europe, Asia
and the Middle East.
Beginning in 2015, CoroWare began researching the development
and delivery of services, solutions, and products in a rapidly
growing industry called the Internet of Things (IoT).
The Internet of Things is a network of physical objects -- or
"things" -- embedded with electronics, software, sensors, and
wireless tracking and communications; and is built on cloud
computing and networks of data-gathering sensors. For example,
an IoT-enabled package or an IoT-enabled shipping container can
tell the shipper or the customer the whereabouts and condition of
the contents of a shipment.
For example, CoroWare is in the early stages of developing an
innovative IoT-enabled tracking solution for a major account
customer in the food processing industry.
Looking forward, I anticipate seeing a growing proportion of
CoroWare's revenues in 2016 that will result from delivering higher
margin Mobile Service Robotics and IoT-enabled solutions that
benefit from CoroWare's technology incubation initiatives in Mobile
Robotics and Internet of Things.
Shareholder Value Growth via Increased Revenues and New
Investment
On November 2, CoroWare's Board of Directors authorized a Stock
Repurchase Program in order to repurchase up $0.5M of its common
shares of the Company's issued and outstanding common stock over a
two year period.
CoroWare enlisted the support of TriPoint Global Equities LLC as
its agent to execute the Stock Repurchase Program, which will
commence after CoroWare filed its 10-Q quarterly report for the
Q3-FY-2015.
Finally, CoroWare has been in discussions with investors and
investment groups regarding short and long term new investments
that can be used to help:
- 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 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
About Coroware, Inc.
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 www.coroware.com.
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.