2014 Outlook
As we move deeper into 2014, the Company’s outlook is positive, and management feels confident that the Company is on track to deliver on several key objectives by the close of the year:
To drive revenue growth and market share, we are meeting plan objectives to increase our product lines to include additional product models that will be introduced to the market Q4 2014 and Q1/Q2 2015. In 2014, the company will begin selling its 105cc engine platform and the company will introduce its first on-road, market leading, high efficiency motorcycle design.
We will add OEM contracts with SmartCarb in addition to aftermarket retail sales for a broad range of product applications. The Company has also entered into a letter of intent with a leading military contractor to provide SmartCarbs for a variety of applications.
The addition of MotoPed to our product mix will help to flatten our seasonality index while adding diversified revenue to the Company and reducing channel concentrations.
We are also meeting plan objectives to increase the current store locations through specialty dealers and regional retailers to over 3,000 store locations. Internationally, we expect to see revenue growth from our market sales launch in Mexico and Central America. Our anticipated international store count should exceed 500 locations in Latin America alone while we focus on gaining deeper penetration into Canada, Brazil, Europe, Australia and South Africa.
MotoVox® will be introducing new products that increase: 1) Gross Margin Dollars; and 2) Gross Profit Margins. We continue to reduce the Bill of Material (BOM) costs on the SmartCarb® as volume continues to increase allowing for greater gross profit margins.
The company’s defective product percentage rate is within industry standards. We continue focus on maintaining low defective rates through our continued product design changes and processes.
