Huge IFTP update, share buyback, etc......
December 8, 2000
Dear Shareholders,
Again I offer my Season Greetings to all of you. I thought I would take the time today to offer you a little more insight into the function of the Chairman’s message and offer you a brief update on some positive developments of your Company.
The Chairman’s message is a site with frequent updates from myself, the President of Infotopia or even key consultants. This message area will allow our team to effectively communicate with our shareholders in a more frequent and informal manner than traditional press releases. It is the goal of our entire management team to keep you, the shareholder, as informed as we possibly can. At the same time, it is very important not to disclose too much information to our competition. In an industry filled with copycat products or "knockoffs", as the industry calls them, announcing weekly revenue on a product by product basis would provide the competition information as to whether to enter the market quickly with a similar product. Though competition will happen in time, an extra several months with a unique product can mean millions in additional revenue for Infotopia. However, we recognize our shareholders’ most frequent request is revenue updates. The Body by Jake Bun & Thigh Rocker, Hot Mommies, Torso Tiger, Backstroke, Cooking Saddle and Body Rocker are all producing revenue in December. In January and February The Medicus Dual 2000, Rejuvicare, Total Tiger, Cathi Graham’s Fresh Start, Ipri-Cal and Prostate Product will also be producing revenue. In addition we offer additional "upsell products" to each customer who calls to order any of the above items.
January begins an amazing time of year for our industry. Fitness products, health products and self-improvement products all begin their peak season. We are in the process of booking media that will clearly allow us to achieve our forecast for this quarter. I just returned from Los Angeles and the results of all of current shows have been exceptional. In January we will return to biweekly updates and provide total revenue from all of our products. This should allow you, the shareholder, to be well informed. The Holiday Season provides a lot of changes in weekly revenue and during this period we are testing media on several of our products which could provide a bit of confusion to our shareholder, thus come January we will return to the updates. We believe that December has the potential to be the highest revenue month in our history and each of the next five months we should set new highs for monthly revenues and profits.
On Wednesday the Board of Directors met and decided to authorize our SEC law firm to begin the process of filing the appropriate documents that would allow Infotopia to utilize 20% of the projected net profits for the next 15 months to begin a stock buy back program. Utilizing 20% of projected profits would create potentially a minimum of ten million dollars in which to repurchase stock from our shareholders in the open market. We feel this will send a strong signal to our shareholders that the year 2001 will see the share count coming down. In addition, Infotopia will be better positioned to fund future acquisitions with cash instead of stock and thus begin to minimize future dilution.
We encourage all our shareholders to remain patient and allow the Company to post this quarter’s numbers. We believe these numbers should inspire a strong confidence in the Company and its future.
Sincerely,
Daniel Hoyng
Chairman & CEO
This information includes "forward-looking statements" that include risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including without limitation the Company's ability to produce and market products and/or services and other risks detailed from time to time in their Company's reports filed with the Securities Exchange Commission.
