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Statmon Technologies Provides December 31, 2008 3rd Quarter Earnings Guidance & Announces $1.25M Round of Secured Convertib

^{Published on 2009-02-27 09:32:29, Last Modified on 2009-11-04 08:35:19 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Statmon Technologies Corp. (OTCBB:STCAE), an emerging wireless and remote site infrastructure management solution provider advises the Company will be late filing its FYE March 31, 2009 3^rd Quarter Form 10Q for the nine months and three months ending December 31, 2008. In the meantime the majority of the Company's secured convertible debenture holders have agreed to invest a minimum of $500,000 as the cornerstone piece of an additional $1,250,000 of the new round of secured convertible debentures and warrants, demonstrating their confidence, support and satisfaction with the progress of the Company. The closing of the $500,000 minimum subscription triggers a reset of the existing $2.5M debenture conversion price from $0.98 to $0.25 per share plus, adjustments including warrant conversion terms. Full details of the conversion price reset will be disclosed at closing and in the 3^rd Quarter Form 10Q to be filed with the SEC as soon as possible.

In the interim the Company provides the following unaudited earnings guidance for the periods ending December 31, 2008, subject final audit review: Revenues for the nine months ended December 31, 2008 came in at $2,496,291, up 5.23% over the $2,372,190 in the prior year period generating an operating loss of $1,247,512, a 13.57% improved result over the $1,443,458 reported in the same prior year period. Net loss for the nine months ended December 31, 2008 is $2,655,221 which is a 48.53 % improvement over the $5,158,273 net loss in the same period last year. Revenue for the three months ending December 31, 2008, were $444,933, a decrease of 39.13% over the $730,960 for the same period in the prior year generating an operating loss of $679,932 compared to an operating loss of $498,469, a 36.40 % increase over the same prior year period. The net loss for the three months ended December 31, 2008 of $1,182,181 is an improvement of 27.52% compared to the $1,630,984 net loss in the same period last year.

Statmon's Chairman and CEO, Mr. Geoffrey Talbot, commented: "Prior to the tumultuous financial market collapse in October 2008 and resultant severe recession taking hold, Statmon was building long term momentum with a growing sales pipeline in excess of $30M. The pipeline remains in tact and will continue to grow as additional infrastructure projects are given the green light including lucrative government funded projects. The top line revenue run rate for the 2^nd Quarter ending September 30, 2008 was $1.2M. Short term implementation purchase orders and revenues dried up midway through the 3^rd Quarter as the network broadcasters capital expenditure budgets across the board were put on temporary hold without notice. At the same time the imminent delay by the federal government of the HD TV switch over date out to June 12, 2009 dramatically impacted the short term capital expenditure from our customers. The HDTV delay postponed the switch off of analog television transmission preventing the broadcasters from exiting the air wave spectrum sold by the government primarily to Qualcomm and the wireless carriers, pushing the mobile TV turn on and implementation of digital infrastructure projects in key markets back over six months costing tens of millions of dollars with no benefit. This scenario caused a trickle down impact on all parties involved in these substantial digital infrastructure projects which will eventually get back on track beyond June 12, 2009."

Mr. Talbot went on to say: "In the meantime network TV broadcasters are absorbing the unexpected additional costs associated with transmitting duplicate analog free to air and HD TV signals to the public and forced to keep their superseded and redundant analog transmission sites on the air and remain in compliance with regulatory requirements including the civil EAS (emergency alert system). This is all happening at a time when deep cost reductions and more efficient operating models are critical in the industry in response to the plummeting advertising revenues."

Mr. Talbot concluded: "The Statmon platform used for network-wide automation and remote control capabilities is designed to rapidly achieve improved operating efficiencies. Substantial cost reduction is an integral part of the Statmon value proposition to its clients."

About Statmon Technologies Corp.

Statmon Technologies Corp. is a wireless and fiber infrastructure network management solution provider. Axess, its proprietary software application, and its supporting integration products are deployed in telecommunications, media broadcast and navigation aid transmission networks to optimize operations and ensure that the entire network continues to function. The Statmon Platform is designed to self-heal, or preempt transmission failure by automating the integration of the different devices and disparate technologies in a network under a single umbrella control system, and permit manual corrective action at the network operations center or from any connected computer, including a wireless device.

The Company is headquartered in Bannockburn, IL, a Chicago suburb, and its shares are traded in the OTC Bulletin Board under the symbol STCAE.OB.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based largely on expectations or forecasts of future events, can be affected by inaccurate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the Company's control. Therefore, actual results could be differ materially from the forward-looking statements contained in this press release. A wide variety of factors could cause or contribute to such differences and could adversely impact revenues, margins, profitability, cash flows and capital needs. Such factors include, but are not limited to, its ability to increase revenues and achieve profits and positive cash flow for the balance of fiscal 2009; its ability to maintain or expand distribution within existing and new channels of trade for its products, including turning its existing pipeline of opportunities into actual sales; the relatively long sales cycle for its products and services; its dependence on MediaFLO for a substantial portion of its revenues; its ability to complete the placement of its offering of Secured Convertible Debentures; its need for additional capital and the uncertainty of obtaining it; the market acceptance for one or more of its new or existing products; whether it will be able to adapt its technology to new and different uses, including being able to introduce new products; competition from larger, more established companies with far greater economic and human resources; its ability to track and retain costumers and quality employees; the effect of changes economic conditions; and changes in government regulations, tax rates and similar matters; its ability to refinance or renegotiate promissory notes that have come due or are coming due; the wide fluctuations in its quarterly operating results; its failure to successfully implement new market verticals; and its ability to keep pace with rapidly changing technologies. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes," "expects," "anticipates," "intends," "estimates," "plans," "projects," "should" or other expressions that are predictions of or indicate future events or trends to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as result of new information, future events or otherwise. For a more detailed description of these and other cautionary factors that may affect the Company's future results, please refer to its Report on Form 10-KSB for its fiscal year ended March 31, 2008 and its Form 10-Q for the period ended September 30, 2008, filed with the Securities and Exchange Commission.