ATLANTA, July 30, 2012 /PRNewswire/ -- East Coast Diversified Corporation (OTC.BB: ECDC) releases its mid-year report and discusses execution of its business plan for the first half of the year 2012 including the official introduction of its two new divisions, StudentConnect and WetWinds to be reported in its 2nd quarter filing.
Business Development and Market Penetration
The company experienced significant successes with some of its partner pilot projects resulting in Master Licensing agreements with partners in Russia (Komntelecom) and Kenya (Asonicslive). EarthSearch also made its first significant progress toward breaking into the US market where it has experienced difficulty in introducing its products due to artificial barrier created by legacy systems on the market.
Major Licensing and Joint Venture agreements
In late July EarthSearch executed agreement for Integration Certification and Trademark licensing agreement with SAP to integrate its RFID product and GATIS software with the SAP NetWeaver platform. This would provide EarthSearch to offer products to customers using SAP NetWeaver. The integration will open up both domestic and international SAP partners' network to EarthSearch's wireless integrated RFID/GPS product. This will create significant business opportunities and growth for EarthSearch. The Company also entered a Joint Venture Marketing agreement with McLeod Software, a major US logistics software provider that would integrate its GATIS software with the McLeod software. For the first time, major businesses and logistic companies seeking real time, item level tracking or continuous visibility of cargo in transit, can access EarthSearch products and technology. We expect to complete both the SAP and McLeod integrations by end of August.
The StudentConnect division continues to introduce its school transportation solution to school districts across the country with a focus on Georgia and the Southeast region. Several school districts are preparing RFQ's that will facilitate implementation of StudentConnect technology and transportation system. StudentConnect presentation to the association of School Transportation Directors in the metro Atlanta School District was very well received and has prompted discussions with some of the school districts to adopt the solution and technology.
Rogue Paper successfully secured businesses with both MTV and VH1 and continues to add new shows from both networks to its technology including expansion to MTV2. In an effort to meet increasing demand the Company recently relocated Rogue Paper to new offices and will be adding a commercial team to its operation in the 3rd quarter. Rogue paper passed the 1 million user threshold for its technology and remains one of the leading second screen applications on the market. The Company is in dialogue with major networks seeking to adopt the Rogue Paper second screen technology. Rogue Paper's ability to customize and private label its second screen application for network television is a key competitive advantage and one it will explore throughout 2012.
WetWinds social media division introduced the name for its social media platform Vir2o in July and will launch a sign up page with promotion campaign in advance of launching the site. WetWinds "Vir2o" will be the most innovative social media platform allowing users across the globe to share real time interactive social engagements. WetWinds completed the design phase of the platform and brought on a marketing team to begin exploring monetization strategies that will make the site successful for the company and its users.
Mergers & Acquisition
WetWinds entered into a licensing agreement to acquire social media site aNOTEfor which is now named Vir20. Rogue Paper will seek acquisition of other competitors in its technology space as consolidation in the space continues. The Company will not seek additional acquisitions in 2012.
Management and Personnel
ECDC added key personnel and other staffs to its business and operation to help execute its business plan more effectively.
Andrej Jeremic joined as Director of Marketing and Business Development, ECDC.
Tish Spaulding, Managing and Creative Director for WetWinds Inc.
George Porras, Director of System Engineering and Design
Toral Kapur, Head of Accounting and Financial Operations
Sales and marketing team for StudentConnect and EarthSearch.
The company added Interactive web development and Designer team for WetWinds development operation.
2012 Outlook and Financial Position
ECDC continue to enjoy stable financial operation in 2012. As the various operations continue to grow revenue, dependence on outside or new funding will diminish. The Company has increased revenue on a quarter to quarter comparison with prior years and expects to see revenue growth at an increasing rate through the end of 2012.
Our 2nd Quarter report will reflect significant revenue growth over same periods for 2011 and for the first 6 months on a year to year comparison.
ECDC successfully reduced debt under a financing transaction with Ironridge Global while adding almost $500k in inventory to balance sheet as part the financial transaction. This will secure the launching of the StudentConnect division and expand sales activities for EarthSearch. In addition, "We negotiated additional equity funding to help us secure all of our development and commercial activities. This provides us the cushion we need to calmly approach the execution of our business plan," said Kayode Aladesuyi ECDC, CEO.
We continue to incur R&D costs for the WetWinds division as well as continuing cost of integrating our technology platforms with other legacy systems.
The aggregation of revenue from all of company's subsidiaries will lead to significant increase in revenue and cash flow. ECDC has streamlined cost of operation, with shared administrative resources, such as accounting, legal services, personnel and other services; the Company will see an overall decrease in operating expense as a percentage of revenue in the next year with significant increases in revenue.
"Our revenue strategy is more focused and diversified. Licensing, data mining and advertisement driven business models will help propel our financial success beyond all prior years. It is my belief that our operation has matured and the addition of these key executives will result in significant growth and revenue successes in the next several quarters," continues Kayode Aladesuyi.
About East Coast Diversified Corporation
East Coast Diversified Corporation (ECDC) is a holding corporation with a diversified group of technology companies. Its business portfolio include businesses offering technology for logistics and asset management, media entertainment technology, transportation safety and class attendance monitoring system and social media applications.
EarthSearch offers solutions using the world's first wireless communication between GPS and RFID. EarthSearch delivers solutions relevant to the operations of businesses and governments across the globe, providing efficiency, cost saving, continuous visibility of assets and cargo in transit, with real time visibility across the entire supply chain. www.earthsearch.us
StudentConnect also utilizes our proprietary wireless communication between GPS and RFID to provide transportation safety and class attendance monitoring solutions to schools, alerting parents and schools of safe departure and arrival of students riding on school buses. www.studentconnect.us
Rogue Paper's award-winning social media technology. TV Tune-In, developed by Rogue Paper, is a real-time, companion viewing and mobile app development platform for media companies to help drive viewership, conversation and interactions for television shows and content. TV Tune-In's CMS allows media companies to develop branded iPhone and iPad apps for television shows and channels. Powering such category leading applications as MTV's WatchWith and VH1's Co-Star iPhone and iPad applications, users can actively comment along with their favorite show (live or time-shifted). www.roguepaper.com
WetWinds, a new social media division scheduled to launch in 2012, will deliver human to human interactive social media experience to audiences and users across the globe. Register to be part of the first one million global beta users at: www.wetwinds.us
For more information on East Coast Diversified Corporation and its group of companies please visit the company's website at www.eastcoastdiversified.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, the risk of obtaining financing, recruiting and retaining qualified personnel, and other risks described in the Company's Securities and Exchange Commission filings. The forward-looking statements in this press release speak only as of the date hereof, and the Company disclaims any obligation to provide updates, revisions or amendments to any forward-looking statement to reflect changes in the Company's expectations or future events.
East Coast Diversified Corporation
SOURCE East Coast Diversified Corporation