MONTREAL, QUEBEC is please to provide a summary of the
highlights of the AGM held on June 26, 2008 and the Monthly Update
Conference Call held on June 27, 2008.
Highlights
There were over 100 attendees at this year's AGM that lasted two
hours and thirty minutes: Here are some of the most salient
points:
Sonomax introduced the framework of managing the business using
the 5 Ps model. The 5 Ps are: People, Profitability, Products,
Potential and Predictability. The Company will continue to develop
and enhance its business plan using this framework.
Dan Casey, Sonomax' CEO provided the following insight
pertaining to each "P" and where the company is today:
People - The Sonomax team is a group of focused, dedicated and
persevering people that are embracing the change the company is
currently undergoing.
Profitability - The Company has not been there yet but has a
detailed plan in place to show improvements on a quarter to quarter
basis. It is anticipated that the company will get to positive cash
and breakeven sometime in the first half of 2009. The Company is
preparing a business plan with the long term objective to reach a
$25 Million sales target in 2011.
Products - Sonomax has four products that are the main focus for
2008 and 2009. They are:
1) Hearing Protection Devices (HPD) - SonoCustom(TM) - this
product is mature and of the highest quality and best of class. It
is showing quarter to quarter growth and penetrating new customers
every month
2) Proof of Performance Software - SonoPass(TM) - the only
objective testing software to measure the attenuation level of any
HPD. Sonomax's strong IP position provides the company with a
significant competitive edge and as this product is embraced by
more and more companies it will become an important revenue
stream
3) MP3 Earphones sold under the brand Soundcage(TM) - the
Soundcage(TM) products have great potential and the balance of the
year will be used to finalize the channel strategy for these
products and
4) Push To Talk - the communication headset used for two way
radios that allows wearers to talk and listen through the earpiece.
The product is being test marketed in Europe and we are confident
that it will be another winning product for Sonomax.
Potential - During the May 28, 2008 conference call the
potential of each product line was explained. The Company is
playing in areas of great potential with very little market share.
The upside is significant.
Predictability - This P has not been strength in the past and
will improve as the Company obtains the necessary data to improve
its decision making and create a more efficient supply chain. Great
progress has been made so far. It is expected that by the end of
Q3-08 the sales forecasting element will be a tool that can used to
plan production, optimize inventory turns and increase the
company's working capital.
An update pertaining too many of the actions that have taken
place since the beginning of the year was provided. Some of those
highlights are:
- Channel inventory has been reduced by 50%;
- Finished Goods inventory will be reduced by 50% by early part
of next year;
- The Company has reduced expenses and consequently the cash
burn is down by about 50%;
- The sales to Vitasound will start in late Q3-08 as they start
successfully penetrating the hearing aid market;
- The sales team is being built, sales process are being
developed and being implemented. This is one of the key elements of
the success of Sonomax going forward;
- Overall company and department objectives are in place and
tracked regularly. This is an essential management process to
ensure that the company executes in a timely fashion;
It was repeatedly stressed that the company clearly understands
its number one priority is to get to positive cash then breakeven
and then profit.
The Company will make progress in Q2-08 over Q1-08 and it is
working diligently to achieve its objective of quarter to quarter
improvements. The second half of the year will be better than the
first half.
The company is growing with its licensee network in Europe and
Australia and is struggling in North America. MSA in South America
has finally received the CA certifications for Brazil and is ready
to start selling. The company is optimistic that it should see some
reasonable progress by the end of the year.
Overall, the organization must execute on the following items
over the short term:
1. A focused organization on the top line;
2. Consistent and conservative cash management;
3. Aggressive pursuit of any areas related to margin improvement
and cost reduction;
4. A rapid and significant improvement in the sales situation in
North America;
5. The proper level of funding for the next 6 quarters;
The summary of the material presented ended with an explanation
as to why the Sonomax team is very confident. The reasons are: a)
New management team that has a proven rack record in sales,
operations, supply chain and the execution of objectives within a
business plan, which will be complementary to the founders' vision
and success in developing best in class products; b) Organization
changes and processes are now in place and working well; c) The
company has great products., They are unique with strong IP
protection and limited competition and d) A plan is in place, there
will be focused execution and the organization will hold itself
accountable on a daily basis.
In addition to the above items, Bruce Jones the new Sonomax VP
of Sales and Marketing presented a summary of his sales strategy
and processes for the organization.
Summary
The company is excited by its potential in growing market
segments and will execute to the plan in place. It is focused on
the top line and will make Sonomax a great company. As previously
mentioned it will take time. The company thanks all the
shareholders for their patience and continued support.
About Sonomax
Sonomax Hearing Healthcare Inc. is a leader in the development
and manufacturing of intra-ear technologies. The company's patented
custom-fit, instant-fit expansion earpieces deliver a perfect
acoustic seal every time and can be certified by SonoPass�, the
company's proprietary, computer generated proof-of-performance
software. Building on its technology leadership in hearing
protection, Sonomax has expanded the applications for its
technologies into high growth consumer products such as MP3 audio,
multi-media and gaming earphones and custom earpieces for other
applications such as Bluetooth(TM) cellular headsets and hearing
aids.
This news release contains certain forward-looking statements
that reflect the current views and/or expectations of Sonomax
Hearing Healthcare Inc. with respect to its performance, business
and future events. Such statements are subject to a number of
risks, uncertainties and assumptions. Actual results and events may
vary significantly.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
Contacts: Sonomax Hearing Healthcare Inc. 1-877-SONOMAX
info@sonomax.com www.sonomax.com
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