FORT LAUDERDALE, Fla., March 1, 2011 /PRNewswire/ -- I am writing to you at a time when I believe our company is on the cusp of a new and exciting era of growth. It promises to be unlike any period in our company's history, as our past achievements in research and development are rewarded by growing commercial demand for our proprietary Voraxial® technology. Our focus on both product and market development should provide us with a foundation for continuing revenue growth. An increasing pace of orders and inquires from major corporations along with invitations to present the Voraxial® technology at prestigious industry events, are evidence of the emergence of EVTN's Voraxial Separators as an accepted solution in the multi-billion dollar separation industry.
In the past three years we have successfully transitioned from an R&D company to a revenue generating company. During this period our revenues have gradually increased as awareness of the technology grew. Although our fiscal year 2010 financials have not been finalized, we estimate over a 35% increase in revenues from our 2009 fiscal year. Revenues in 2010 were primarily derived from the oil & gas exploration and production industry with additional revenues from the mining, and oil spill markets.
This revenue growth is accelerating in 2011 as supported by purchase orders already received and customer requirements under discussion. Again, the revenues in the upcoming year are primarily derived from the oil & gas exploration and production market. We are forecasting a 250-300% increase in revenues for fiscal year 2011 as compared to 2010. In fact, our current order backlog is already 150% greater than our revenues for the entire 2010 fiscal year. With the forecasted increase in revenues, we expect margin expansion that will result in profitability in 2011. Based on the inquiries and discussions we are currently having with oil companies, oil service companies and our representatives, we believe our revenues will continue increasing year over year in 2012.
The majority of our prior marketing efforts have been focused on the produced water sector of the oil & gas exploration & production industry. However, the unique performance advantages of the Voraxial provide the Company with revenue opportunities from other market sectors as well. Recently, EVTN was invited to be a guest speaker at the Chevron / Office of Spill Prevention and Response (OSPR) sponsored oil spill conference, the "Fourth Biennial Technology Workshop for Oil Spill Response in the Marine Environment." The Company believes additional revenues may be generated from the oil spill and oil reclamation industries in 2011.
The increase in Voraxial® Separator system deployments is resulting in stronger relationships with oil companies, oil service companies, representatives and OEM's. These important relationships allow EVTN to further penetrate the market. As the number of units deployed increases, we believe the acceptance of the technology will also continue to develop which will result in greater sales.
To better understand the reason for our excitement, it is important to explain how our Voraxial Separator technology provides unique performance advantages when compared to other separator systems currently used in the oil production and exploration industry.
There is a void in a large segment of the separation market that the Voraxial Separator fills; simply stated, in areas of high flow, limited space and limited fluid pressure. Currently, the solutions to handle this type of fluid stream are 1) create pressure which can be costly and counter-productive to separation efficiency, or 2) use large settling tanks or systems using large tanks to allow time for the oil and/or solids to settle – this results in a slower process, larger footprint (for which space may not be available) and potentially more maintenance. Additional problems include the difficulty in handling a high concentration of oil and a fluctuation in flow rate and oil concentration. The Voraxial provides the customers with a faster more economical solution. These competitive advantages, in addition to lower cost of ownership and operations, are as follows:
- No pressure drop
- High "G" force
- Separation of 3 components simultaneously
- High flow, low energy
- Compact Unit – small footprint
- Handles slugging of gas
- Treats a wide range of flows, even slugging flows
- High performance over a wide concentration range
- High performance over a wide flow range
- Variable speeds to optimize separation
The management of EVTN greatly appreciates the patience and loyalty of our shareholders. We have gone through an extended period of research and development and have succeeded in creating an extensive intellectual property portfolio surrounding our Voraxial Systems and technology. Additional time and effort is being invested in presenting the technology at major industry events and customer demonstrations. Due to its unique design efficiencies, a Voraxial system can usually process volumes equivalent to competitive systems many time its size and cost. These advantages allow EVTN to provide our customers with competitive pricing and still realize healthy profit margins that can translate to earnings potential. EVTN has now successfully commercialized the Voraxial and proven the Voraxial in a variety of market applications. We have accomplished this while remaining debt free and without significant dilution in shareholders equity. Based on the economic and operational benefits provided by the Voraxial and the increasing awareness of its effectiveness in multiple markets, we expect the current positive trends in profitable sales to expand.
We thank you again for your continued support.
Safe Harbor Disclosure -- This Press Release contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of Enviro Voraxial® Technology, Inc. For this purpose, any statements regarding this announcement, which are not purely historical, are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including Enviro Voraxial® Technology, Inc. beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and based on information available to Enviro Voraxial® Technology, Inc. as of such date. There are a number of important factors that could cause actual events or actual results of Enviro Voraxial® and its subsidiaries to differ materially from those indicated by such forward-looking statements.
SOURCE Enviro Voraxial Technology, Inc.