BELLEVUE, WA--(NewMediaWire - Feb 17, 2016) - 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
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. 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.