News for 'COPI' - (Compliance Systems Corporation Issues CEO Letter to Shareholders)
GLEN COVE, N.Y., Aug 07, 2008 (BUSINESS WIRE) -- Chairman & CEO Dean Garfinkel
of Compliance Systems Corporation (OTCBB: COPI) issued yesterday a letter to the
company's shareholders highlighting recent corporate accomplishments and
developments, and summarizing the company's course of action and plans for the
next 18 months. The letter read as follows:
Esteemed shareholders, friends, and followers of Compliance Systems:
During this past year, we have worked diligently to position our company for
future growth. Management has expended tremendous efforts to chart a course that
will help the company increase revenues, broaden its market presence and
accentuate the company's footprint in the marketplace. To that end, the
following is a brief overview of the most substantive events and corporate
achievements from 2007 and 2008 to date, and our vision for the next 18 months.
In 2007, we focused a large part of our efforts on restructuring the company's
balance sheet. We significantly improved the company's working capital and
stockholders' equity by exchanging $3.1 million of the company's material debt
obligations for equity and raising $2.5 million through the sale of convertible
preferred stock, out of which we retired $1.1 million of "toxic" secured
convertible debt. I am pleased to report that in achieving this objective, we
have significantly strengthened the company's financial position and it is now
better positioned for growth and expansion.
As a pioneer in the compliance solutions sector, we believe the company's
TeleBlock(R) product has become the industry standard. In 2007, we unveiled
Enhanced Caller ID, a functional add-on to our TeleBlock product, which allows
call centers to display a telephone number that is local to the area they are
calling, thereby assisting telemarketers in complying with federal regulations
and improving their call answer rate. Later this year, we plan to launch two new
products, TeleBlock Office(R) and an online regulatory guide directed to the
not-for-profit industry. TeleBlock Office is an "Office-in-a-Box" solution that
is tailored to, and designed for, remote employees and agents using the
company's products over a Voice-over Internet Protocol ("VoIP") backbone. The
not-for-profit regulatory guide is an online compilation of industry specific
federal and state rules and regulations for charitable organizations. We are
confident that these new products will be favorably received in the marketplace.
As always, we have devoted much time and resources to continue to expand the
TeleBlock infrastructure during the past year. We anticipate that we will
continue to increase our extensive provider network by further leveraging the
company's existing relationships within the teleservices industry.
As a whole, we believe the company's visibility in both the financial and public
community continues to improve. In the second half of 2007, we took a more
proactive approach toward increasing investor and media awareness by retaining
the services of The Investor Relations Group, a full-service, NYC-based
corporate communications agency. We are working closely with the IRG investor
relations and public relations team to increase media recognition, communicate
to the public, and continue to build shareholder value.
The company also retained the services of Cresta Capital Strategies, LLC, an
investment banking firm, in March 2008, to assist us in locating, qualifying and
possibly acquiring synergistic companies, and in providing to the company
sources of short and long-term funds for both operating and acquisition
purposes.
In May of this year, we entered into a short-term financing agreement with Agile
Opportunity Fund, LLC that provides the company with a $600,000 credit facility,
of which we have drawn $300,000 to date. By having this facility in place, the
company now has some of the resources necessary to commit to building a sales
team to market the company's product offerings.
This past April, we hired Bernard Goulet to head the company's marketing
initiative. Bernie's solid industry background includes compliance and sales
positions with several top-tier firms, most recently, Microsoft. We are
confident that with his proven expertise and aptitude, coupled with his strong
relationships within the industry, Bernie will be instrumental in helping us to
grow the company's customer base and revenues.
Over the past few months, we have been reviewing several acquisition
opportunities and, consequently, have recently begun informal discussions with a
select group of them. It is much too early to speculate as to which potential
acquisition target, if any, will be acquired, but it is our intention to
effectuate at least one acquisition this year. These preliminary informal
discussions with these companies, however, have not resulted in an acquisition
agreement. Although we remain committed to our strategy, there can be no
assurance(s) that any of these targets will be acquired.
If our efforts to continue to grow our business and successfully complete our
acquisition plan are fruitful, the company may become a different player within
the teleservices industry. During the second half of the current year and for
2009, we anticipate that management will be devoting more of its efforts on
identifying acquisition targets and negotiating the terms of such acquisitions.
If we acquire any targets, we further anticipate that management will be
devoting significant time to consolidating the acquired operations into a
cohesive organization, exploiting any newly created synergies, and reducing
expenses by eliminating redundant functions, in an effort to maximize
shareholder value.
Finally, as you may have noticed by now, depending on how long you have been a
shareholder, our company does not generate a significant number of press
releases, for which there are two primary reasons. Most importantly,
substantially all of our larger end user customers' contracts contain
non-publicity clauses, thereby limiting our ability to generate a newsworthy
story. In addition, we do not believe in issuing a press release just to issue
one without a substantive event.
However, we do recognize how important transparency and information are to you,
the company's shareholders. Consequently, we are creating a policy that will
fulfill that need, and expect to implement it immediately thereafter.
On behalf of the Board of Directors and the entire management team, please allow
me to extend my appreciation for your loyalty and continued support over the
years. We remain dedicated to building and maintaining shareholder value.
Sincerely yours,
Compliance Systems Corporation
Dean Garfinkel
Chairman & CEO
About Compliance Systems Corporation
Headquartered in Glen Cove, NY, Compliance Systems Corporation
(www.callcompliance.com), is a developer of technology-based compliance
solutions for the teleservices industry. Its prime focus is ensuring 100%
compliance with Federal, State and local government "Do-Not-Call" laws through
its flagship patented product, TeleBlock(R) and its associated suite of
telecommunication products. The company sells to corporate companies and
business across a wide-range of industries and sectors. For more information on
the company and/or our product suite, please visit www.callcompliance.com or
(888) 674-6774.
Call Compliance Inc. is a wholly owned subsidiary of Compliance Systems
Corporation (OTCBB: COPI).
Forward-Looking Statements
The forward-looking statements contained herein are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
reflected in the forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect management's
analysis only as of the date hereof. The company undertakes no obligation to
publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date thereof.
SOURCE: Compliance Systems Corporation
