MALVERN, Pa., Aug. 3 /PRNewswire-FirstCall/ -- USA Technologies'
(OTC Bulletin Board: USTT) Chairman and CEO, George R. Jensen, Jr., today
issued the following letter to update shareholders on the Company's recent
progress.
Dear Shareholder:
The entire team at USA Technologies is excited by the recent sales growth
and momentum in our key product lines, the strong Fiscal Year 2005 fourth
quarter close, and the $1.4 million plus backlog in orders, all of which gives
us reason to expect record revenue growth in fiscal 2006.
Not only did sales of all four of our key product lines increase during
the 2005 fourth quarter as compared to the 2004 fourth quarter, but it gives
us great pride to report we are the industry leader in energy management for
commercial appliances, in cashless transactions for vending, in networked
commercial laundry services, and in automated business center services.
According to the Nilson Report, USA Technologies had a commanding lead in
cashless vending products and services, conducting 90% of all credit and debit
card transactions in the industry. Further, Nilson predicted that one-half of
the 8 million US vending machines will accept credit cards by 2009.
Additionally, we have no known competitors in sales of energy management
products for existing vending machines and coolers - a market with tens of
millions of potential locations worldwide.
Only last month, beverage leader PepsiCo., took a giant step towards
energy management, placing an initial order of $810,000 on behalf of one of
its customers to help reduce the cost of running vending machines in its
customer's stores. Click on the following link to read the 8K filing done by
the Company regarding this transaction.
http://www.usatech.com/news/v022160_USATechnologies_8k.pdf
And we're anticipating further orders from PepsiCo, with other retail
chains and beverage companies expected to quickly follow its lead.
Based upon orders in place, by the end of this quarter, e-Suds(TM) is
expected to have over 2,000 additional connections to our USALive network.
These 2,000 new connections, along with e-Port(R) and Business Express(R)
connections are generating growth in monthly recurring service revenue for the
Company.
This recent progress, together with the $1.4 million plus backlog in
orders, gives us reason to expect accelerated sales growth for fiscal year
2006. Our business has never been healthier, our product line has never been
stronger, and we have never been more competitive. Our profit margins are now
approximately 50 percent compared to 21% just one year ago.
But there's more, including a growing list of high-profile programs that
we expect should drive revenue gains in fiscal 2006. They include:
-- The Company has begun installation of energy products with a second
Fortune 50 retailer - and in this case - on vending machines and glass
front coolers.
-- USA Technologies is currently shipping e-Port to two of the largest
vending operators in the US - and we expect an escalated degree of
activity with both during this fiscal year.
-- USA Technologies is currently involved in strategic activities with the
major credit card associations related to contactless, cashless vending
- an exciting new payment technology being rolled out to millions of US
consumers. Contactless RFID credit and debit cards are already being
used at some movie theaters, quick serve restaurants and drug stores,
but up until now, not in vending machines. The card associations
consider the $40 Billion vending market a major opportunity for growth
of cashless transactions, and believe that contactless RFID technology
could help accelerate the vending industry's adoption and use of
cashless payment.
-- Finally, the Company is engaged in multiple negotiations for the sale
and distribution of its products, licensing of IP, and other business
opportunities which are expected to impact fiscal year 2006 revenues.
Over the years, we have invested millions of dollars developing our
proprietary products, services and technology. The Company has 63 patents
granted, and 25 pending. Our products are unique, industry leading, and
importantly, in demand. As such, we believe the Company is positioned to
capitalize on three global mega trends that are driving the economy.
-- A worldwide crisis related to energy production, demand and cost.
-- The emerging networked economy.
-- Cashless revolution with non-cash purchases out pacing cash purchases.
The team at USA Technologies is squarely focused on its goal of driving
the Company's revenues - and reaching profitability during this fiscal year.
We will keep you updated with our plans, opportunities and most notably,
successes.
In the meantime, we thank you for your support as we work hard to grow our
company.
Sincerely,
George R. Jensen Jr.
Chairman & CEO
USA Technologies, Inc.
About USA Technologies:
USA Technologies is a leader in the networking of wireless non-cash
transactions, associated financial/network services and energy management. USA
Technologies provides networked credit card and other non-cash systems in the
vending, commercial laundry, hospitality and digital imaging industries. USA
Technologies is an IBM Business Partner. The Company has marketing agreements
with AT&T, Honeywell, MEI, Unilever and ZiLOG Corporation.
http://www.usatech.com
Statement under the Private Securities Litigation Reform Act:
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements relate to future events or our future
financial performance and involve known and many involve unknown risks,
uncertainties and other factors that may cause our actual results, levels of
activity, performance or achievements to be materially different from any
future results, levels of activity, performance or achievements expressed or
implied by forward-looking statement including, but not limited to prospects
for future market growth. In some cases, you can identify forward-looking
statement by terminology such as "may," "will," "should," "expects,"
"anticipates," "believes," "estimates," "potential," "continue," or the
negative terms or other comparable terminology. Although we believe that the
expectations in the forward-looking statements contained in this release are
reasonable, we cannot guarantee future results, levels of activity, and
performance achievements including the ability to obtain orders for or install
our products described in this release, our ability to obtain new customers,
our ability to increase revenues, or our ability to maintain profit margins.
These forward-looking statements are based on our current expectations, and we
disclaim any obligation to update these forward-looking statements for
subsequent events or to explain why actual results differ unless otherwise
required by law. You should not place undue reliance on these forward-looking
statements.
USA Technologies Contact: Investor Relations Contact:
George R. Jensen, Jr., Chairman & CEO Ken Sgro
Stephen P. Herbert, President & COO CEOcast, Inc.
Phone: (800) 633-0340 Phone: (212) 732-4300
e-mail: sherbert@usatech.com
Bob Giordano/Sarah Shepard
ROI Group Associates, Inc
Phone: (212) 495-0200, ext. 10/17
sshepard@roiny.com
SOURCE USA Technologies
 back to top
Related links:
http://www.usatech.com
CONTACT:
George R. Jensen, Jr., Chairman & CEO, or
Stephen P. Herbert, President & COO, USA Technologies,
+1-800-633-0340, or sherbert@usatech.com; or Investor Relations:
Ken Sgro of CEOcast, Inc., +1-212-732-4300; or Bob Giordano,
+1-212-495-0200, ext. 10, or Sarah Shepard, or +1-212-495-0200,
ext. 17, or sshepard@roiny.com both of ROI Group Associates, Inc.
|
