YankeeAce, these are still in motion as far as I know. and they are deffinitely living up to these words: "We have found that in Mexico, the buying decision is typically made early in the process, but the administrative aspects of the sale take significantly longer."
NOWHERE HAVE I FOUND ANYTHING THAT TELLS US THESE DEALS ARE TRASHED.
Question: What is the status of your prospects in Mexico?
Answer: The status of our prospects in Mexico is described below.
Electric Utility Company: On May 18, 2004, the Company announced that it had entered into a test agreement with a large Mexican electric utility company that has 72,000 trucks. It was stated that the utility company would test the TransTRAK system in a live environment for a period of 30 to 60 days, and if the testing phase proceeded to the satisfaction of both parties, the potential client would be prepared to make an initial order for a portion of its fleet. It was stated that there were several other milestones that we needed to reach with the prospective customer before this agreement would translate into revenues for PlanetLink. This was the agreement.
The testing agreement with the Mexican electric utility concluded at the end of September 2004. The testing was successful in that TransTRAK did perform to expectation. The company has not decided against purchasing our system, but they have made no commitment to proceed with an initial order. We do not believe that they are evaluating any other system at this time.
Estrella Blanca: On May 26, 2004, the Company announced that it had entered into a test agreement with one of Mexico's largest bus companies that has 10,000 vehicles, most of which are buses. It was stated that the test would serve as a field trial of the TransTRAK system, and if the test proceeded according to expectations, PlanetLink could see revenues from this contract as early as October 2004.
At the annual shareholder's meeting in November 2004, we presented a signed copy of the Estrella Blanca contract for the first 100 units of the TransTRAK system to shareholders. This has been a lengthy process with Estrella Blanca, but we have continued moving forward with this agreement from the onset. Through the contract negotiations, Estella Blanca decided that a staged implementation was in the best interest of their company, but there has never been any question that their intent was to order additional units as long as the installation of the first 100 units went well, and as long as their business case holds true. We are very pleased to say that the installations could not have gone any better, and while we recognize that it could take considerably longer to realize the full potential of this revenue opportunity, we remain optimistic that we will end up servicing the Estrella Blanca fleet.
Canacar, Mexico’s National Trucking Association for Freight and Cargo: On October 18, 2004, the Company announced that the President of Canacar, Mexico’s National Trucking Association for Freight and Cargo, had agreed to test the TransTRAK product in his company’s fleet of 500 trucks. This prospect did agree to test our product in his company’s live work environment. However, there have been numerous delays including several rescheduled appointments.
We have learned much about doing business in Mexico. The business culture is much different than in the U.S. Everything tends to take longer than we anticipate, and we find ourselves having very little influence over the amount of time it takes from the point that a customer expresses interest in our product to the point that we have units actually billing. In the U.S., the buying decision is the longest part of the sales cycle. We have found that in Mexico, the buying decision is typically made early in the process, but the administrative aspects of the sale take significantly longer.
GOOD TIMES AHEAD (confirmed)
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