Newport Digital Technologies Provides Update to Shareholders
- Company Elects to Discontinue Efforts to Compete in the Digital Signage Market, Plans To Complete Restructuring and Explore Alternatives-
02 Apr, 2012, 12:09 ET
NEWPORT BEACH, Calif., April 2, 2012 /PRNewswire/ -- Newport Digital Technologies, Inc. (OTC: NPDTE) announced today that they have formally discontinued efforts to compete in the wireless, interactive digital signage solutions business but will continue with its previously announced corporate restructuring. The Company plans to complete its restructuring and explores several business opportunities. To preserve cash, the Company has elected to become a non-reporting but will trade under the symbol NPDTE and then will revert to and trade under the symbol NPDT.
The Company attempted to enter the highly competitive wireless, interactive digital signage marketplace under a partnership with Convergent Holdings, but was unable to attract the capital necessary to compete with much larger, better funded competitors in this space. It became clear to management and to the NPDT board that the Company could not profitably execute and that to continue to spend time in a market that is growing more competitive and dominated by major players would not be in the best interests of the company and its shareholders.
To that end, the Company will move forward to complete a reverse split of its common stock, eliminate all debt from the balance sheet and continue to explore an array of business opportunities that could create value for the stockholders. The company has nominal fixed operating expenses and will save tens of thousands of dollars in expenses by becoming non-reporting until it has defined its business model.
"We have worked very hard over the past few years, with limited resources and attempted to exploit potential niche markets in the digital signage space," said NPDT CEO Donald Danks. "The reality of competing against existing, established competition, a nominal balance sheet and limited human resources dictated that we make the moves that we are announcing today. We are actively exploring a number of business opportunities that we feel can add value given the current market conditions. We will keep shareholders apprised as we explore these options."
Newport Digital Technologies, Inc.
Safe Harbor: This press release contains certain forward-looking statements with respect to NPDT and its business. Statements that are not historical facts are identified as "forward-looking statements." The words "estimate," "project," "intend," "expect," "believe," "plan," and similar expressions, particularly when used in the "future tense," are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Information on potential risk factors that could affect the Company's business plans and financial results can be found in the Company's reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Newport Digital Technologies, Inc. has its headquarters located in Newport Beach, California, with a branch office in Australia. If you would like more information about this press release, please contact Donald Danks at +1.949.230.8323 or email at [email protected].
Newport Digital Technologies, Inc.
620 Newport Center Drive, Suite 640
Newport Beach, CA 92660
SOURCE Newport Digital Technologies, Inc.
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