City of Industry, Calif.--January 22, 2004--Global ePoint, Inc. (Company) (Nasdaq: GEPT) has outlined a new business and growth strategy, which includes plans to expand into new technologies, products, and markets through its existing operations and potential strategic alliances or acquisitions.
With the Company's current digital video and manufacturing operations as a base, the Company intends to enter new markets and develop new compression and chipset technology for next-generation digital video and Internet protocol (IP) applications for commercial, consumer, and other security and surveillance needs. Of note are plans to develop and market next-generation digital video recording systems incorporating new compression technology.
The Company's strategy also includes a potential acquisition of a related-party global sourcing and sales and marketing company, with which Global currently has ongoing transactions. To support planned technology and product development, the Company intends to add to its domestic R&D team and form an offshore support team for cost-effectiveness.
Global ePoint Chief Executive Toresa Lou commented: "Underlying this strategy is the potential for production and operational synergies between Global's existing and planned divisions and a more vertically-integrated business structure. Management feels there are significant advantages to be gained from internalizing and integrating operations from R&D to product design to parts and components sourcing to manufacturing, and then to distribution and sales.
"Clearly, there is much to be accomplished, if we are to achieve our primary objectives of growing sales and revenues and realizing greater cost efficiencies for profit growth," Lou added. "However, we feel this new strategy is meaningful for Global's shareholders, since it provides a cohesive business plan and offers insight into the reasons for our positive outlook for the Company. To effectively implement several steps involved in this strategy, we are also considering various financing alternatives, including an offering of equity or debt securities."