WELCOME TO THE MESSAGE BOARD FOR
This board is dedicated to discussions of news and technical analysis of eFotoXpress Inc. (EFOTO and its stock ticker symbol: EFOT, not currently trading). ****I (Jimmy Quick) highly recommend that all first time visitors read the CEO emails to shareholders. They are very informative and seem promising, but you must always, draw your own conclusions.**** When posting please try to stay on topic and keep the conversations civil and in accordance with IHUB's "RULES OF THE ROAD." Happy trading and good luck to all.
The following excerpt comes from eFotoXpress website and are just some of the products that eFotoXpress provides.
eFotoXpress Picture Archiving & Sharing System (PASS) is the best solution in the development and delivery of medical imaging and information management software and services. Our research, marketing, development, and sales teams with years of experience in the medical imaging and healthcare information technology, provide innovative solutions for small to large institutions. PASS also assures the best and fastest medical image transaction not only from the hospital, but any place with our secure internet connections.
PASS Enterprise — A complete system for a radiological hospital, clinic, image center, and lab.
PASS Standard — Remote medical hosting service specialized to radiological institutions.
PASS Xpress — Local medical hosting service specialized to radiological institutions.
PASS DCM Robot — Storage/Backup Solution For Your PACS.
Copyright ©2006, eFotoXpress Inc. All Rights Reserved.
Find out more about this company and all of their products at:
Edward Tan, President and CEO
USA Office: 46560 Fremont Blvd., #115
Fremont CA 94538
Phone: (510) 979-9100
Fax: (510) 979-9116
eFotoxpress (QUSIP# 28224W100) is authorized to issue 100,000,000 common stock. To date 49,665,451 shares are outstanding.
Stock holder updates have been occurring frequently since April 2006. Please make sure you read the emails from the CEO to the shareholders written below. The press releases can be read in their entirety on the company's website.
CEO Communication to Shareholders by email:
Dear Fellow Stock Holders:
In one of my earlier e-mails, I outlined some information concerning the direction in which we are heading and also our exit strategy. At this point I will like to update you on what has transpired so far.
We have decided not to pursue joint venture agreement with the parties that we were in negotiation with concerning the pharmaceutical products. This decision came about after I felt that I will not be able to run this company efficiently under this arrangement as I do not have any previous experience in this line of business. I also am beginning to experience exponential growth selling DCM Systems and I would not like to share our success with a project that might likely impede our growth. In this short period I have sold over 20 systems worldwide and continue to increase the number of installed-bases. I don't think I want to dilute my resources but rather do what I do best. I have another 40 systems in the pipeline. There are many reasons why it cannot move as fast as we want. Hospitals require planning and there are lots of system integration issues that will require time to work to implement. The outlook for 2008 looks very bright to complete these 40 systems.
Our first option is to create a huge installed-base. When this happens, we will definitely come under the radar of the big players. Companies like Siemens, GE, Philips and Toshiba tend to acquire companies that have large installed bases because they can use these bases to sell their equipment. What is the number?. I think if we can achieve 400 bases we will be looking good.
The second option is to list the company at an exchange. We have identified the Hong Kong Stock Market. Hong Kong Stocks that have Chinese content tend to be more favored than those without. People tend to buy your shares when you say you sell and generate revenue in China. In years past it would be disastrous if you ever said this because American analysts ruled out companies doing business in China saying that these companies are high risk companies. Today it is a dream to do well in China. I have a very good contact in China and we are in the process of drawing out an exclusive distribution agreement for the Chinese market. There are over 51,000 hospitals in China of which not less than 10,000 would qualify to purchase the DCM System. The procurement process is time consuming. If we can penetrate 1% of the Chinese market we will be able to achieve the 400 bases. Almost 99% of the hospitals are State Owned. So if you sell to one you sell to all.
We have carefully laid out our strategy and from now on we only need to execute it. We have to continue to generate revenue both within and out of the US and particularly in China. I also mentioned about investment from Silverdale and Goldman Sachs. An agreement with Silverdale has already been signed and the funds have become available. Goldman Sachs has not signed.
In the coming months we have only one thing to do - Generate Revenue. I will be travelling again at the end of the month. My first stop is in Dubai where we are installing a system. Then we moved on to Mumbai to install another system. It was lucky we opened an office in Philippines because we now are able to provide support to our customers in Asia. We have an office of 18 people - many of them are sales persons and technicians. Support is not an option but a requirement.
We continue to grow in financial strength and this has carried us thus far and towards our next level. This also led to hire a top notch National Sales manager who now will be able sell our product in the US. We will continue to invest in training technicians so that we are able to support our growth in the Chinese Market.
President & CEO
Fremont CA 94538, USA
Dear Fellow Stock Holders:
I have just returned from a trip in the Far East. It looks like we will have to continue to generate revenue from these markets. It has been most promising. In the next several months until we have decided to list we will do nothing but keep selling our systems. We have done exceedingly well opening like two new install-based per month. Last month I sold to a hospital in Dubai and one in Mumbai. I have also sold one system in Philippines.
In Dubai we are working with a Siemens dealer which sells PACS system but they do not have a product like ours for the middle market. Through this dealer we will install one system on April 30th in a very well-known hospital in Dubai.
In Mumbai, we will install in the best private hospital on the west coast of India. This hospital is an Icon installation. We strongly believe following this installation we will have many more. In the Philippines we installed at the National Kidney Transplant Institute - another Icon installation.
I will soon be leaving again to continue to open new markets.
President & CEO
Dear Fellow Stock Holders:
I have just recently returned from my overseas trip - the longest I have ever been away. During the past two months I travelled all over Asia selling DCM Systems (www.efotoxpress.com). I have never been so successful in my entire life selling any product like this one. I continued to open more markets worldwide particularly in Asia. Like many new products it did take sometime to sell one system and it will continue to take that time to sell as many. It will take at least 6 months from the time of installation until acceptance before we got paid. This is very typical in the medical industry. The good news is they like our product. Our 30 inch monitor carrying 4 mega pixel resolution is the latest new hit. No one has ever seen anything like that. We have received 30 orders just for the 30 inch work station alone. We have just added another new product to our line.
We have recently opened a new office in the Philippines. We have hired several technical people to support our customers. We continued to hire sales-people so that they can help sell more products in the Philippines. At the moment we only have one hospital in Singapore using the product and we will use the support from the Philippines. We have appointed a major dealer in Bangkok and we are confident that they will do very well there. The dealer in Bangkok has purchased one entire system as their own stock. We are in the process of drafting an agreement with an Indian Distributor. The Distributor will purchase 40 systems and inventorized them as stock. Meanwhile in the USA we are close to completing a deal with Dr. Richard Oliver. Dr. Oliver is a major stock holder and he has agreed to sell the product on a limited exclusivity arrangement in the US.
In the interest of the stock holders I have decided to defer the listing of the stock which I have promised. I had earlier promised that I will take the stock public in September. However come September, I felt that we were really not ready. Our product would have only generated meager revenue and I felt that it will not generate ienough nterest within the investing public. I am so afraid that it would come out as a penny stock and I would have been blamed for a lousy job done. If we ever came out as a penny stock we may not be able to climb out of this hole and realize greater value later. The climate at this time is also not right for a listing. The US stock market is about to face one of its worst nightmare soon. With oil prices closing at $100 a barrel and a weak US dollar (as most currencies are posting all time high against the US dollar) I am sure everyone would agree that we should not rush into listing just for the sake of listing but it would be wiser to do so when we are more ready. I have a fiduciary duty as the CEO and I intend to do what I can in the interest of all of you. I strongly believe we need more time - more time for the product to get known and with time we have a better chance of making those revenue numbers.
I have been approached by an investment banker from India (www.silverdaleservices.com). I have now received papers which I have to complete. The Investment Banker will provide $50 million to eFotoXpress in exchange for conversion rights when we go public. The $50 million will come from Barclays Capital ( a Division of London's Barclay Bank), Goldman Sacs, Silverdale and several Funds out of Dubai.This money will be used to purchase new technology and even new companies so that we can grow bigger. The Investment Banker will also take a positive role in the manner in which we role out our business. They will take us to the Middle East where one of such investor is the owner of 18 hospitals. Incidentally the Indian deal came from this Investment Banker. I can see why when an investment banker who gives you $50 million will want to see that you don't go down. I can only draw the conclusion that they must see a future in what we are doing. The due diligence process should be completed by the end of the month. I don't see any reason why this deal cannot go through but there is still a chance that they may abort the deal. So let us not celebrate for now until I sign on the dotted line but use this as information for an update.
Once again I want to appeal to all of you not to drown this office with e-mail insisting that I must update you all every two months. While I appreciate your investment I do not have the time to answer every individual question. No CEO of a company does that. Some of the stock holders were so demanding that it has become quite annoying. In future I will refrain from writing to stock holders unless in an e-mail like this. We are going into revenue phase and it will take another 9 months before we really can start counting our chicken. No news is good news.
I want to assure you that I have worked relentlessly to make this company very profitable and so please be more patient.
With warmest Regards
Sells Update, with Buyout News
I have just returned from my trip. I have been away for 7 weeks. In the seven weeks I sold/installed 4 systems ($700,000). I have 3 ($525,000) more pending as we ran out of hard ware. Shortly I will return to the Orient to complete the installation. The product continues to do well. The most important advantage in our system is the storage. People like our automated storing system. Equally important is our ability to allow remote access through the internet. In another important development we have successfully implemented remote access via internet without having to download images for manipulation and construction. This has increased the speed in which radiologist complete reading. With such successful implementation we have decided to charge a monthly fee of $100 per seat. Our observation is we will get at least 10 seats per customer. In short we may be able to collect a monthly fee of $1000 from each customer (or $12,000 per year). If we have 1000 customers we will generate an annual recurring income of about $12 million.
We are confident we will have 1000 customers by end of 2008. We are in the process of completing our agreement in China and India and both these countries are our hope of making these numbers. A meeting has been set for Sep 8th in China and 15th in India.
During my 7 week tour in the Orient, I held several meetings with prospective buyers for eFotoXpress. Some offers were very attractive and some were not. I am in the middle of finalizing an offer. In my next visit scheduled for Sep 2nd, I will complete the offer and report back to you all for a stock holders meeting when I return. We shall all vote for a decision whether to sell the company or hold on to it. My report to you will contain the sale price and all the conditions attached to it. Nothing has been finalized yet and everything is speculative.
Thanks again for your support.
With Warmest Regards
Edward Tan, CEO
Overseas Business/Local Business
Originally I was going to call for a stock holders meeting in July but I have to change plans and perhaps call for one immediately after I return from another overseas trip. I am set to leave again for the Orient. I have several pending sales. The first one is in Singapore. I have received inquiries from two different hospitals. The next order is from Thailand. This is a group of 8 private hospitals. The third one is from another private hospital in the Philippines. I will give you my report when I return.
As for the United States, I have made some progress. I have concluded an agreement with a marketing company who will take our product into the Medical Retail market. The group has people who are very connected into the medical retail market. One of them come from a very well-known name and the other has 20 years experience selling to the medical industry. I can only hope and pray for the best and I can only wish them all the very best of luck. Only limited exclusivity has been given and until they produce results we will continue to look for more distributors.
With Best Regards
Edward Tan, CEO
I have just returned from what I would call a very successful overseas trip only to say that I will be leaving again in two weeks. I will categorize my achievements as follows:
We continued to make substantial progress selling DCM ROBOT in the Philippines. Our demo at Makati Medcial Center (MMC) has turned to a sale and we got paid. It had earned creditability with numerous prospective customers calling at MMC to see and even talked to the Head Radiologist. This has further led to two more sales. We now have a total of three in the Philippines and one at demo stage. Philippines is undergoing major changes in their medical sector – from analog to digital. We could not have been here at a better time. Our timing was just perfect. Fortunately because our pricing structure we were able to walk over all our competitors in the Philippines. In the next two weeks we will commence our first pilot test at one of the 88 Government Hospitals. Thirty days after evaluation we will proceed to enter an agreement to interface all 88 hospitals with a PACS system. The project is estimated at $15 million. Our experience in the Philippines has further strengthened our confidence in the product. In a very short time we will commence our first tele-radiology setup at MMC. MMC will become the first hospital to accept images from the US for pre-reading. More and more hospitals in the US are seeking outsourcing reading from overseas because of cost issues. Meanwhile MMC will be proceeding to get accreditation so that they will be allowed to attest readings at all levels. The pipe for tele-radiology has already been established. Our pricing structure actually has shut out competitors like Toshiba, Siemens, GE and Philips in the middle market. No hospital in the Philippines has adopted a full PACS system using the Siemens or GE systems. This may be our only opportunity to become a major player in the Philippines. We will continue to dominate this market here.
Hong Kong continues to show interest in our product although we face stiff competition from major suppliers like Siemens and GE. The market here is relatively small compared to Philippines. We have an agent in Hong Kong and they have been working very hard to get our name into the market. On my last trip we visited the Children’s Hospital and Queen Mary’s hospital. We have decided to allow one unit to be on demo at one of the recognized hospital. We have decided not to participate in Government Hospitals as the tender process will take too long.
China continues to dominate the world as the largest market in everything. Our agent is now proceeding with registration of the product. China is very strict about product registration. This should not take too long. In the mean time demo is allowed pending the registration process. Our agent has identified a hospital in Shanghai where we will begin a demo process. This is being done right now. Within the next 30 days we will commence a FULL SCALE demo. The purpose once again is to earn creditability. The demo should be completed within 30 days whereby we will proceed to enter into an agreement to proceed with a pilot test at 100 sites. This project is estimated at another $15 million. Within six months after its completion we will start implementing a massive project within China. Our DCM ROBOT has been localized in Chinese. If and when completely implemented we project revenue from China to be about $150 million. However it will take over a period of 2 years. Once again our agents and their connections in China have made this possible.
We have not forgotten the world’s most vibrant and inhospitable market in radiology. While the market is much bigger than anywhere in the world except China, we tend to face very stiff competition. However we are not going to remain unattentative. We are in the process of entering an agreement with a consortium who has put up a marketing plan to sell our product in the USA. Within the next two weeks we will hire a National Sales Manager to take care of the program and to ensure that we also can become a major player in the US. I don’t see why we are unable to do well in the US when we have succeeded elsewhere.
If sales in the US are not forthcoming then we need to go elsewhere to generate revenue. Many times great products become household name overseas before it really gets back into the US.
Our total sales so far reached $1.25 million. We project another $8 million for the next quarter.
Thanks for reading.
With Warmest Regards
Edward Tan, CEO
Sales in the United States continues to remain slow. There is nothing wrong with the product but I am beginning to learn if I have a big name behind us it will definitely sell. I am now trying to adopt a different tactic. I am going to try to woo a major name to take on our product because big name companies can sell almost anything. There was a discussion about hiring a National Sales Manager. He is one of our stock holders who have been National Sales Manager for numerous years and retired. At the moment he is on vacation and when he comes back I will plan together a plan and let you all know.
Sales in the overseas market continue to impress. Like I have mentioned before I don’t care where I go but I will go the place that will generate revenue. Fortunately the place appears to be China – uncompromisingly the world’s largest market. We have appointed an agent to distribute our product in China. We have been promised (I repeat PROMISED) sales in China to be around $150 million over the next 12 months.
This is very possible in view of the demographic set up of the hospital system in China. Chinese hospitals are State-Owned although there are also numerous private hospitals. There are over 10,000 hospitals in China with at least 2000 of them equipped with CT Scans and MRI equipment. In China normally when you strike a deal with the Government it is usually for all the hospitals. As usual connections are important to close any deal in China. This week I will be traveling to China to meet some of the hospitals and to present our product.
We continued to do well in the Philippines. We are about to set up a link between two major hospitals in the Philippines so that our system will work like a PACS system. We will link the Heart Hospital and the East Ave hospital for this set-up. At the same time we will also set up a system at St Luke Hospital – a very private hospital. I will also be visiting Philippines during this trip.
We also have appointed an agent in Malaysia and Thailand. We will continue to appoint more agents and distributors in Asia and Europe. If there is anyone of you who knows anyone please let us know. We will be very happy to make contact with them. Agents and distributors must have experience in distributing medical supplies to hospitals.
Work is still in progress concerning our plans to list the stock on the market at the end of September.
That is all for now.
With Warmest Regards
Edward Tan, CEO
Shareholder email: Appreciation
Dear Fellow Stock Holders:
Following my e-mail I received numerous replies appreciating my effort. I want to thank you all for being patient with me and only GOD knows how hard I try to make this company successful. I am now even more committed to ensure we become successful. Here are some examples of the appreciations I received.
Dear Mr. Tan,
Thank you for the update! Although I am unfamiliar with the listing process, I am not in a hurry to see the active trading of the company. I wish to achieve strong fundamentals... a strong foundation before we jump the gun to listing. I know that you will not be pressured by the investors, but will focus on the ingredients that will solidify the success of the company. The prudent investors will be patient.
Best regards to your success!
Two sayings come to mind:
"Good things come to those who wait", and "Timing is everything". We have all waited a long time, and it would be foolish to rush to listing at the wrong time. I say let's wait a little longer and do this right, and then everyone becomes a winner. We don't want to be a penny stock any longer than necessary, and get on the NASDAQ as soon as possible, which will lend a great deal of credibility to this company. We have to trust you that you will pick the optimum time for listing. You have my blessings to pick the right time, and I hope the other stockholders won't pressure you into doing something that will hurt all of us.
I appreciate your hard work and guidance.
Dear Mr. Tan.
Please do not take time to reply. None is necessary.
I'm in no hurry to have shares issued.
I have been investing for a number of years now and have always been aware of the risks. If other shareholders didn't understand the risks, then they shouldn't have invested.
In that time, I have owned stock in several companies that just shut their doors without appearing to make any real effort to save their business.
You seem to be making every effort to make yours work, and I can only admire and thank you for that.
If things work as well as you expect, then I will congratulate you. If things don't go as well as you would like, you should still be proud, and I will still congratulate you for your effort.
And if you go on to even bigger and better things, then I will follow you anywhere because of the trust and respect you will have personally earned from me.
Thank you for the updates.
Take care, don't neglect your personal life, and Good Luck to you.
I am all for waiting, after all patience is a virtue. I agree that we need to increase our revenue prior to listing.
Keep up the good work!
My sincerest thanks for your incredibly hard word and for taking the time to keep us updated through emails.
I am in no hurry to have our company go public. Please proceed as you feel correct, I trust your judgement completely.
It continues to be exciting to be a part of your excellent business efforts.
Dear Mr. Tan,
Thank you for your latest message. For what it is worth, I am on your side. I don't see any good reason to rush into a public offering if we end up being a Penny Stock. I would vote all my shares to have us wait until a substantial amount of revenue has been earned, before going public.
With assurances of my highest esteem, I remain,
Information about Listing (Repeat of above posting)
In the past several days after I returned from my overseas trip, I have been swamped with inquiries about our intention to list the company. I thought in the best interest I will let you all know the procedures and what I have to do to comply with listing.
As much as I want to delay the listing, I am under tremendous pressure from the so-many stock holders who want to get this listed immediately. I have given you my undertaking that I will get shall this listed no later than Sep 30th 2007. At least the best thing going for us is that we have a very viable product. It will take some time to sell as much as we want but preliminary sales have been very encouraging. In my last e-mail I have briefed you on what I have accomplished so far. You may ask why we set Sep 30 as our dead line.
Public audit is now very stringent. The auditors are very careful with who and what they audit. When the audit is completed we will send it to our SEC Attorney, The Law office of Robert Brandt in New York, to write his Management Analysis and to prepare the filing-a form we called the SB10. We do not need an investment banker at this time since ours is purely applying for a registration statement. We had a registration statement before when we were trading. Now we are just seeking for a re-registration. From my past experience the SEC will start the process by asking numerous questions about the number of shares issued, about the business and almost about anything you can imagine. I have not known of any process that is quicker than 2 months. We intend to file Registration Statement sometime in June. Assuming that the SEC takes 3 months we would be right on listing sometime on Sep 30, 2007. This is an area that we have no control. We cannot be denied listing. Once the SEC grants us our registration statement, we will request our market makers to commence trading. We do so by filing to the NASD a form called 15c211. We will initially trade on the OTCBB (since we did not proceed with an IPO). For 90 days if our stock can hold a value not less than $4.00 we can then file for a listing on NASDAQ. How do we get $4.00? This is where I have always mentioned that we need to generate revenue. The longer the time we have the better our chances to generate enough of revenue to justify a $4 stock. So rushing to get listed is really not an option. We all don’t want to have a penny stock. In 1997 when we were trading hype took the stock to $12 a share. We don’t want this to happen. We want to give our investors great fundamental values.
In the next three months in between traveling and trying to sell more equipment to realize revenue, I have to work with the auditors, the market makers and most important of all to appoint a security firm to promote, write and retail our stocks. If I am able to do this, I want many such investment brokers to cover our stock. I have several years experience in these areas and I am confident I can make tremendous contribution. At the same time I need to go out on road shows to tell people about our company. My task is to generate some serious revenues so that we bring about those magic words – EPS. EPS stands for Earnings per share. If we can, I repeat if we can, generate $25 million in revenue this year, we will be looking very good. We would make $20 million and with 50 million shares we will have an EPS of 40 cents per share. This industry typically will produce 10 to 40 times earnings per share. Therefore we may be getting $4 in value to as much as $16.00 per share. These numbers are very subjective and please don’t say that I am promising you these numbers. I will work my life out to get these numbers i.e. $25 million in revenue this year. If the sales in the United States are not forthcoming then I will go to where the money is – Philippines and China. So far we have sold $900,000 of the DCM ROBOT both local and overseas. Last year we generated about $800,000 in revenue. So far our revenue to date is about $1.7 million. We have 20 more prospective customers who are waiting for logistic clearance to test our equipment. This would turn into another $1.5 million in revenue when sold. We are long ways to $25 million. Our average ticket for a product is about $150,000. So to get to $25 million we need to sell 166 systems anywhere. I intend to achieve this by appointing distributors worldwide. I have appointed distributors for Malaysia, Philippines, Hong Kong and now two more in the US. Next month I will continue lobbying in China. China imports about 20 CT Scans a month. If I can convinced them that the DCM ROBOT is definitely something they need with their CT Scans, then it makes my job a lot easier.
I have shared my thoughts with you and I hope you do not point fingers at me later that I have made lots of empty promises. I will work my life out to achieve these numbers. I don’t think it is difficult and I am confident I can achieve these numbers. We have launched several products in the past with not much success but this one appears to be a home run.
For those who own stocks in AMUT, they will be automatically converted to eFotoXpress stocks. We already have a QUSIP number for the stock. The QUSIP is a number when brokers identify our stocks when we trade. If you hold physical stocks you may send them directly to the transfer agent to change them into eFotoXpress stocks. The transfer agent charge $25 per certificate. The name and address of the transfer agent is located on the front page of the certificate. If your shares were bought through a broker you will not have to do anything. Your shares will trade once we start trading.
If I have missed anything and if there is anyone of you who can contribute to make us more successful, please do not hesitate to contact me.
Once again, I remain
Edward Tan, CEO
I have recently returned from the Orient and what I called a very fruitful trip.
I have concluded a deal to install a PASS (PACS system) to the Department of Health in the Philippines. The PASS will connect the Philippines Heart Center, another hospital that houses the Department of Radiology and the third hospital -the Kidney Center. This is a major undertaking because it involves lots of integration especially with equipment that are relatively obsolete. However this installation is a major achievement and another milestone in the sale of our products. Installation will commence in the middle of May. When completed it has a price tag of about $300,000.
Meanwhile while focusing on this market we also will be installing another solution at St Luke Hospital in the Philippines. St.Luke is a private hospital and it is the leading hospital with very modern equipment. Recently the First Gentleman (husband of the President of Philippines) was admitted to this hospital for a major heart surgery. During our visit he was also at ward. This installation is also scheduled for Mid-May and it has a price tag of $150,000.
We also have concluded another deal in Hong Kong. A private hospital, the Union Hospital in the New Territories, will test our DCM Storage system. Also scheduled for Mid May the DCM Robot will connect a CT Scan, MRI and Ultrasound equipment. It has a price tag of $200,000.
We are still actively continuing searching for customers within the United States. In June we will be installing a system at a private clinic run by Stanford Hospital. This system will connect this private clinic to CVI where the CT Scan resides. Doctors at the new clinic will be able to view images immediately after they are taken at CVI. Since it is only a work station the price for this project is $45,000. The doctors running this private establishment are from Stanford and they have indicated that they will like to adopt our solutions at Stanford Hospital.
Working is currently underway at CVI to link a GE Echo equipment and the Nuclear Equipment to our existing DCM ROBOT.
Edward Tan, CEO
The DCM Robot continues to make great progress.
In the coming weeks we will be going to Singapore whereby we will install two PASS (PACS system) in two very well known private hospitals. The system will be installed on a trial basis. Each system will cost about $500,000 if purchased after the trial period. Immediately after the installation in Singapore, we will move to the Philippines whereby we will install a DCM ROBOT ($125K) at another hospital. On our way back we will stop over in Hong Kong and install a DCM ROBOT and one PASS in China.
As we begin our revenue phase, we should start thinking about re-listing our stocks. We have set a date no later than Sep 31st. Barring any unforeseen circumstances we should begin to trade on or before this date. By that time we hope we would be able to generate strong revenues to justify a great value for the stock.
The year of the Golden Pig (once every 60 years) looks like a great year for us.
Once again thanks for being patient.
Edward Tan, CEO
Medicare CT Scans
In the past, Medicare will not pay for CT Scans. If there was any payment for CT (under doctor's prescription) only a nominal amount is being paid by Medicare. CT Scan is now the future for healthcare. In November, Medicare and all major PMOs, including Blue Cross, have agreed to pay a much higher level towards CT Scans. As a result, you will now see a hugh increase in the number of patients getting a CT. Consequently, you will begin to see huge pockets of small clinics buying Siemens CT Scanners to service the ever-increasing number of people needing CT Scans. Remember each scan can cost as much as $2000.
Siemens is now selling their latest 128 Slice CT Scanner. Such sophisticated equipment can even see strains within the hair. With such sophistication comes a huge demand for storage space. This is a mojor plus for companies like us. We are proud to say we are the only company in the world today to have an automated system that can take any DICOM image (i.e. from the 128 Slice) and store them in our server and in the manner we architect the software. Then we can archive them into DVD for over 20 years. Most DVDs do not have that long of a shelf life. The law requires 7 years.
We have hired two sales people to go and pitch our product within the Bay Area and on January 22nd we will conference with McKesson and try to pitch our product to them. McKesson is very well established and they have thousands of sales people worldwide.
We are very bullish with this product and we have come a long way to get this product off the ground.
With Best Regards,
Edward Tan, CEO
As you all already know we have recently finished another great product, eFotoXpress PASS. I have mentioned that we are in installation phase now beginning with the first installation in the Philippines. We will then move to CHina and then to Hong Kong and Singapore. Next week I will visit Thailand and we hope to receive more orders thereon.
In the meantime we are pleased to announce that we have made another major breakthrough with PASS. Together with a well known local cardiologist, we have come up with another great product - a fully automated storage solution for Siemen's CT scan equipment. At the moment there are over 16,000 CT Scanners worldwide. None of these CT Scanners come with proper storage systems. The existing storage system that comes along with the equipment can oly store limited images. Each CT Scan will store about 700 mb of information. Very quickly these images will fill up the small storage space. Because of the inadequacy a technician is required to backup these images on a weekly basis and sometimes more frequently if the hospital does more studies daily. Along with this primitive method comes the risk of losing the data if not properly stored.
At eFotoXpress we have come up with a fully automated system. Untouched by human hands, the system will automatically transfer images from our server to a library. Images are then stored here. The system also allows automatic retrieval. Large hospitals are known to use outsource storage but the cost to do this is humongous. We will file patent soon.
In the meantime we have stimulated interest at Siemens by announcing our breakthrough to them. We hope to get into a partnership with Siemens because this makes great sense to them. With our storage system that works in all Siemens Dicom Process they can now re-sell our solutions to their customers. We hope to conclude the deal quickly because if it does not happen with Siemens we will take this product directly into the open market.
We are very confident this product will outsell PASS as it has more potential.
I remain Yours faithfully,
Edward Tan, CEO
Getting Ready to be Traded Publicly
We are now going into the month of September - the end of the third quarter of this year. Things have been doing real well here for us. Next month we commence installation for the PASS in the Far East beginning with Philippines. Next we enter China to do more installations. Our compression product continue to generate some sales. Recently we signed up a new agent for the Middle East. We expect to ship some orders soon.
In anticipation of some serious revenues, I have began the process of the preparing the legwork for listing. Once again I want to mention that unless we realize these revenues we will not start trading even though we have finished the due process. We must have some serious revenues otherwise we will not see any value in our stock.
I will engage the services of a company based in Seattle who will start the process. Please go to www.sbseattle.com. First we will need to have the company's books audited i.e. 2006 and 2005. This will take several months. I hope by the end of December we will finish the audit. Hopefully, by February 2007 we can start trading on the OTCBB. Note post 38 above that states late summer as the new possible date for trading.
I have been informed that we need to trade for 90 days on the OTCBB and when we qualify we can move the stock to the American Stock Exchange. Hopefully, by this time we would have recognized those revenues. However, we must start the ball rolling.
This Seattle-based company has indicated to us that they will be using Oppenheimer as our stock placement security company, our analyst and promoter.
My staff here and I will concencentrate for the rest of the remaining months to go out and get that revenue we have been waiting for. If we can get it the rest is gravy.
Your company here has hit another milestone in the product area. We do have a new product that will compliment Siemen's Equipment. We will have the first fully automated storage system sold here in the USA. There are over 10,000 such equipment in the USA and all of them are without an automated storage system.
With Warmest Regards
Edward Tan, CEO
eFotoXpress PASS continues to be home run product. I have just returned from a trip to Philippines, China, Singapore, Melbourne and Frankfurt. The product continues to draw attention worldwide. Closing products like this requires some time. People need to see the demonstration and then go to our website to test the product. Testing via the website was ready yesterday. Now customers can go on-line to play with the program before making decision to purchase.
We continue to dominate on the price point. We are still lowest price in town.
In the Philippines we sold two systems valued at $300,000. We sold one system in Singapore valued at $150,000. We did nothing in Melbourn. It was disappointing.
We continue to entice the Chinese market. At the end of each demonstration there was a need for hands-on trial and at that time the Chinese version was not ready. It is now. I plan to return to China within the next three weeks to close numerous sales. We have been offered 4 locations in China in which the tests could be carried out. If successful, there is a possibility whereby we may sell as many as 50 systems.
In Germany they have just began marketing the eFotoXpress Standard and Premium Version.
During the next two weeks, the company will be training several groups in the USA so that the product can be taken out to a broader base.
With Warmest Regards,
Edward Tan, CEO
This is to further update you on the progress of eFotoXpress PASS - our latest hot product which I will like to say may be our home run. We continue to learn more new things about the existing PACS solution. As I go out to sell PASS I continue to gather more information about new features that needed to be added and also learning our shortcomings.
Just a few notes about PACS. It stands for Picture Archiving COmmunications System. It is a revolutionary software device aimed at reducing the operational costs in hospital by providing a filmless solution in X rays. There are other advantages of PACS. Each year a large hospital will spend over $2 million in films. PACS is adopted by Siemens, GE and Phillips. Less than 15% of hospitals use PACS. This cost of installing PACS is about $2 million.
Realizing that the other 85% either cannot afford a $2 million system or do not have a need for such a sophisicated system, we decided to compete in this niche market by entering PASS at and around $150,000. We have been more than successful. We have packaged it so well that it has become very appetizing to smaller hospitals. Our first delivery of the PASS was scheduled on May 31 with three more in the local Bay area. However, becauses we needed to include more features we will have to delay installation two weeks later.
We are confident our product will become accepted in the medical industry.
My priority is to go out and sell as many as we can. We have recruited people in the medical industry to help us sell our (PASS) end-to-end solution. We hope to hit 100 systems by the end of the year. This will realize an approximate revenue of over $15 million.
With Warmest Regards,
Edward Tan, CEO
We continue to make headway on eFotoXpress - PASS. We continue to make the product better by adding new features. We intend to make this our home run product. Recently I demonstrated this product in Germany, Switzerland, Singapore, Hong Kong and China. At each demonstration I learned something new - each time making our product a better product. We have received two orders and as soon as we have concluded incorporating the new features we will ship out the product. We have a new website. Please go to www.efotoxpress.com
Edward Tan, CEO
Outlook in eFotoXpress for the rest of the year
2005 has been a very trying year for the company. Understanding that a one-product company may not likely succeed, we launched two more new products – i.e. the Premium Version and the Medical Version. We continued to understand why such an excellent product, that won several outstanding reviews, was not able to generate the kind of revenue we expected. Fortunately we finally found the answer.
We realized that our software will not sell as a stand alone. We discovered that it must be sold as a solution. In order to do this, we had to create a server-based solution to solve a problem that is haunting the Photo Printing and the Medical Industries. We both cases we were able to provide the solution - i.e to allow huge images to be sent over a small pipe-line. Hundreds of megabytes of images can now be sent over e-mail that normally would take hours. Our solution took several seconds. Every Lab tends to serve several hundred customers. As we begin to sell these solutions we increased our chances of selling more software since each customer needs a software in order to send pictures to the labs. We charged every lab a fee of $3000 for the first year and thereafter an annual fee of $1000. The cost for using the premium is a one time fee of $20.00. This premium version does not have e-mail capabilities and only can be used point to point. We charged a one time fee of $50,000 for the medical server-based solution.
The server-based solution for the Lab and the medical industries took 9 months to complete. It is now ready to market. In the first quarter of this year we generated a revenue of $650,000. In the second quarter we expect to sell over 1000 server-based solutions – estimated at $3 million.(1000 x $3000). We expect to sell 200 server-based solutions in the medical industry – estimated at $10,000,000.(200 x $50,000). In turn we expect to sell more eFotoXpress Premium through these server-based solutions. We expect to sell over 100,000 copies of the Premium - estimated revenue of $19 million. (100,000 x $199.00). We therefore forecast our total revenue for the year at $32 million.
It has taken us a long time to figure out how we were able to sell our products and our solutions. We believe we have a great product and we believe we will do well this year and the following years ahead.
We are determined to stand out in the compression software industries. We will soon launch a website similar to that of www.ofoto.com. This ASP model using JP2 technologies allow us to provide faster download and better viewing features – something no one has ever provided. The ASP model will also help us sell wedding, corporate and group albums and high quality picture frames at one third of the retail price. In time we hope to capture 10 million customers. Sites like this are known to draw millions of customers because postings are free of charge. When this happens we will be able to generate huge advertising dollars. As we start to report revenues we then will explore the possibilities of seeking listing on the stock exchange.
On a daily basis we received numerous inquiries as to why we are not listed. Listing a company is very easy. Listing eFotoXpress last year would have been suicidal because we were not ready. If we had gone into the market hastily with only technology hype – our stock will remain a penny stock. However with revenue the investing public sees proof in what we have developed and this will add substantial value to our stock. So let us not make the same mistake we made in 1997 when we listed our stock. Although it reached an all time high of $12.00 it failed to maintain its value and plunged to an all time low of less one cent.
With R and D completed, the company will now concentrate on generating revenue. In the Photo Printing Sever-based solution we have already sold three solutions to e-Pic - China’s largest photo-printing lab. We have several pending orders from several South American Companies. We are waiting for payment before we make further announcements. In the Medical Server-based solution we have sold one solution to the Medical Lab in Cupertino, California. In the later part of this month we will make presentation to two medical facilities in Phoenix, Arizona.
We are still working details with Sam’s Club about when we will be selling eFotoXpress. Our China office is in the final stages of being approved by the Chinese Government. We have received the certificate of incorporation but we are still waiting for the authority to approve the appointment of a public accountant.
In the following days to come you will see a significant change on our website reflecting the direction we are heading. Please visit our website at www.efotoxpress.com
With regret, stock holders are constantly calling this office to inquire trivial matters. With over 2500 stock holders we cannot provide personal service on this nature. We therefore ask you to provide us with your e-mail address so that we can inform you of progress from time to time. You can send your e-mail to email@example.com
All of us have worked very hard to make this company viable but whenever we make changes midstream we lost valuable time. But changes are necessary. This year we hired some more new employees and we will continue to hire sales people from here on.
We have decided that we will conduct business in the manner which we have explained for the remaining months and we have decided not to make any more changes in the manner which we conduct our business.
For this we ask all stock holders to continue to visit our website for important news and updates. We regret that we cannot post everything we do on our website for security reasons. So whenever you do not hear from us it does not mean that we are in trouble. We have highlighted our business model in this update and it will not change for the next 18 months. As soon as we are ready let me assure you that it is our top priority to list this company again.
However we are not ruling out the possibility of being bought over. We have successfully reduced the number of shares from 97 million to 32 million through the reverse split. We have remained private. If we succeed in getting 10 million eyeballs we surely will become good target to be bought over.
Finally our heart is always with the stock holders.
Once again thanks for your patience.
With Warmest Regards
Edward Tan, CEO
Press Room News Releases:
MMC joins the band of elite users of the DCM System
eFotoXpress is proud to announce the successful installation of their DCM ROBOT at Makati Medical Center (MMC) in the Philippines. MMC is the first hospital in the country to adopt a fully digital picture archiving sharing solution of the DCM ROBOT. It has joined the band of elite users of the DCM ROBOT. MMC is now able to access images remotely anywhere in the world and is the first hospital to adopt a fully automated optical archiving solution.
The DCM ROBOT will also allow MMC to enter the world in Tele-Radiology. Outsourcing image reading is the growing trend in Radiology.
Edward Tan, CEO of eFotoXpress said, “The stage is set for MMC to start receiving images from anywhere in the world for pre-reading and full diagnostic reading.”
St. Luke's Medical Center "Radiology Week"
eFotoXpress DCM System participates in St. Luke's Medical Center "Radiology Week"
This event is going to be attended by Radiologists from different hospitals all over Metro Manila, Philippines. The event's theme is "Shifting towards New Trend in Radiology". St. Luke's Medical Center is one of the largest and modern hospitals in the Philippines.
eFotoXpress latest automated storage system makes debut at two medical facilities. The first system was installed at Cardio Vascular Institute, Los Altos, California. The second system was installed at the Makati Medical Hospital, Makati, Philippines. Both systems have now been operating for almost one month.
eFotoXpress Inc., sold 15,000 copies of software to Germany
Edward Tan, President and CEO of eFotoXpress Inc., said: “This is our second entry into the German Market. This shipment with a value of over $650,000 is definitely not our last. We expect to continue to ship our medical versions shortly.”
eFotoXpress launches PASS
PASS – a very Low Cost Server-based Picture Archiving Sharing System for the medical industry
Last week the company released eFotoXpress (Premium).
New name - eFotoXpress, Inc.
We are pleased to inform you that American Multiplexer Corporation has changed its name to eFotoXpress, Inc.
The Reverse Split Has Been Approved
Notice is hereby given to all stock holders that the reverse split of the shares in AMUT in the ratio of 3:1 has been approved. The effective date is Sep 30th 2005.