Re: Anybody remember details of Flashback sale/liquidation?
in response to
by
posted on
Nov 24, 2007 05:52PM
I think these 2 paragraph that you are looking for
In November 1996, the Company
entered into an OEM contract with Sanyo Information Systems U.K. Ltd. (extended
into the rest of Europe with Sanyo Buro-Electronic Europa) (collectively
"Sanyo") and in January 1997 entered into an OEM and development contract with
Lanier Worldwide, Inc. ("Lanier"). Management believes it has substantially
completed the transition from a manufacturing and sales organization to an OEM
provider of technology, product development services, and technology licensing.
The Company, as a consequence, anticipates that the majority of its future
revenues will be from license and royalty fees, private label agreements for the
Company's Flashback family of products and from contract development services for custum products.
e Company was unsuccessful in its efforts to directly distribute the
products and incurred significant expenditures and operating losses. In late
1996 the Company, as a part of its restructuring, discontinued direct sales and
elected to private label the products. In November 1996, under the terms of the
Sanyo agreement, Sanyo
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commenced private labeling the products under an exclusive arrangement in the
United Kingdom. In March 1997, the Sanyo agreement was expanded to provide for
sales to the rest of Europe. The agreement, which terminates in October 1999,
provides that Sanyo must purchase at least 500 product units per month (plus or
minus 20%) in order to maintain exclusivity. For the current fiscal year through
September 30, 1997, the Company had received approximately $414,000 in orders
from Sanyo, of which approximately $249,000 had been shipped. Management
believes Sanyo has the established infrastructure, brand recognition, and
marketing expertise required to be successful in retail channels. There can be
no assurance that Sanyo will be successful in distributing Flashback products in
Europe or continue to order from the Company.
The Company is seeking additional OEM private label relationships for
existing Flashback products in other markets.