LOS ANGELES, Dec. 29 /PRNewswire/ -- The following is being issued by WestPark Capital, Inc., a member of the National Association of Securities Dealers, CRD Number 39914: WestPark Capital announced today that it has initiated research coverage of USA Technologies (OTC Bulletin Board: USTT) with a BUY recommendation. USA Tech's proprietary technology (11 patents granted, 36 pending in the United States, 14 pending worldwide) augurs well to position the Company as the leading provider of unattended credit card activated control systems, especially in the micro-transaction category, a market VISA estimates at $400 Billion in the USA alone. Sales for the fiscal year ending June 2001 are projected at $8 million, up by a factor of four from $2 million in sales for the fiscal year ended June 2000. WestPark forecasts the Company achieving profitability in this fiscal year's fourth quarter ... with EPS increasing to $0.60 in fiscal year 2002. Driving this growth are sales of e-Port(TM), a patented and proprietary unattended credit card control system that basically provides non-PC Internet access to facilitate e-commerce. The Company has assembled powerful strategic alliances with IBM (NYSE: IBM) to migrate its current network to the Internet for worldwide distribution, with RadiSys (Nasdaq: RSYS) to manufacture e-Port. USA Tech is also an inaugural member of Sprint's Enabling Application Service Provider program (eASP), a network that seamlessly meshes non-PC machinery to the Internet via the Company's e-Port(TM) unit. Three years under development and Beta-tested with leading American vending machine manufacturers, e-Port(TM) was launched last October at the National Automated Merchandising Association's trade show (NAMA), the largest in the world. As prevalent as ATMs and Pay-at-Pump machinery have become on the commercial landscape, vending machines and point-of-sale terminals -- e-Port's primary market focus -- represent a considerably larger market by a factor of almost 18. Vending machines: 7,000,000 ATMs: 700,000 Point-of-Sale terminals: 9,000,000 Pay-at-Pump: 200,000 Total: 16,000,000 Total: 900,000 USA Technologies recently concluded its first multi-million dollar contract for 2,000 e-Port(TM) units to Self Serve Centers. Additional contracts emanating from the NAMA trade show with even larger vending machine operators are expected to materialize throughout the first half of calendar 2001. WestPark's EPS model for fiscal 2002 anticipates 50,000 e-Port(TM) units sold and delivered nationwide. At under $1,000 per unit, WestPark believes $45 million in sales in fiscal 2002 is a realistic top-line achievement. "Our near term target stock price (6 months) is $3/share," said Tom Heysek, Market Strategist for WestPark, adding "by the middle of next year, the market will be looking to USA Tech's projected results for FY 2002, and at $3, this represents a multiple of only five times that fiscal year's expected EPS." Longer term Heysek stated that a price target for more patient investors in the $5 to $10 range is a defensible investment point of view. (1) This report is for information purposes only. The information has been taken from trade and statistical sources which we deem reliable. We do not represent that it is accurate and it should not be relied upon as such. Any opinions expressed herein, reflect our judgment at this date and are subject to change. Under no circumstances is it to be construed as an offer to sell or a solicitation to buy any security. The information contained herein has been obtained from sources believed to be reliable, however their accuracy and completeness and that of the opinions based thereon, are not guaranteed. WestPark Capital, Inc., its affiliates, subsidiaries and/or officers and employees may from time to time acquire, hold and/or sell a position in the securities mentioned herein. WestPark Capital, Inc. may also perform for, or solicit from any company mentioned in this report, investment banking or other services.
SOURCE WestPark Capital, Inc.