Revenue Increased Sequentially Due to g-Spout® Product Sales
BELLEVUE, WA, Oct. 15 /PRNewswire-FirstCall/ - The Tradeshow Marketing Company Ltd. (Pink Sheets :TSHO ), a direct sales company that represents and markets unique consumer products in diverse sales environments, today announced results for the Company's fiscal first quarter 2011 ended August 31, 2010.
Revenue for the fiscal 2011 first quarter was $167,970 as compared to $12,926 for the fiscal 2010 fourth quarter. The sequential increase in revenue is due to sales of the Company's g-Spout® utensil in the specialty catalog and direct sales channels. Total orders since Tradeshow acquired rights to the product now amount to approximately $600,000. The Company continues to receive product orders from established customers and inquiries from potential new customers in North America and international markets.
Net loss for the fiscal first quarter was $422,965, or ($0.02) per share, compared to a net loss of $323,889, or ($0.01) per share in the fourth quarter. Net loss for the first quarter includes non-recurring expenses of more than $155,000 consisting of costs related to media buying for product test campaigns, campaign management fees and recruiting expenses.
Cash and cash equivalents at August 31, 2010, was $189,319. The decline in cash in the first quarter reflects cash used in operations and an increase of approximately $225,000 in working capital investment for manufacturing, inventory and accounts receivable to support the increase in g-Spout product sales. Accounts receivables and inventory were approximately $154,852 and $94,190, respectively.
In addition to the continued development of product sales initiatives, the Company has refined its product positioning and streamlined operational costs to improve efficiencies and reduce expenses. These efforts include reassignment of campaign management to internal staff, the shift to wholesale marketing, and utilization of internal resources for product marketing and sales. The Company also completed re-positioning efforts for the g-Spout in order to better align with the needs of retail outlets that have reviewed the product ahead of possible retail introduction.
"The first quarter reflects the Company's efforts to expand sales of the g-Spout product and the required costs associated with these efforts," stated Luniel de Beer, President and CEO of Tradeshow Marketing. "In addition to fulfilling our wholesale orders, the Company is actively working with our partners to identify international market opportunities in the areas of direct response and retail sales channels. While we remain focused on ramping revenues, the Company has undertaken a number of initiatives to reduce corporate expenses and lower future costs on such items as product media testing and campaign management fees. We are also exploring options related to the capital needs of the business to further expand the retail sales of g-Spout and to bring additional products to market. We look forward to continued progress on these sales initiatives, while we closely manage the financial requirements of the Company."
For more information about Tradeshow Marketing, please visit the Company's web site at www.tsho.com. Shareholders of Tradeshow Marketing who would like to be added to the Company's email distribution list can send their contact information to firstname.lastname@example.org.
About The Tradeshow Marketing Company
The Tradeshow Marketing Company Ltd. is a publicly traded consumer-products company focused on the development and distribution of unique products that have broad appeal and improve the lives of consumers. The company operates a Direct to Consumer (D2C) Commerce business in North America, and markets and sells products through various channels such as trade shows and exhibitions, Direct Response Television (DRTV), printed catalogs and magazines, retail stores, and product-specific e-commerce web sites. The company was established in 2003, and is headquartered in Bellevue, Washington.
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SOURCE Tradeshow Marketing Company Ltd.