|Global ePoint Announces Strategic Initiatives For 2005
|CEO Reaffirms Commitment to Growth in Homeland Security Technologies, Product Development and Strategic Agreements
CITY OF INDUSTRY — (BUSINESS WIRE) – November 29, 2004 — Global ePoint, Inc. (Nasdaq: GEPT) an innovator in homeland security solutions in the aviation law enforcement and high volume contract manufacturing, announced today its Strategic Initiatives for 2005. The announcement, by Toresa Lou, CEO of Global ePoint, reviews the Company’s key achievements of the past year and presents the Company’s vision and business goals for the coming year.
Global ePoint’s key operational strength is its vertical integration. The Contract Manufacturing division provides an excellent example of the Company’s effective margin protection strategies at work. In order to obtain a competitive advantage in the market place, the Company continually manages component pricing and operational costs and strives to provide scaleable, in–time production capabilities. By keeping control of all vertical functions – from design to distribution – the Company is able to effectively manage all processes from start to finish. By keeping these functions in–house, the Company is able to capture efficiencies and maintain a cost leadership advantage over our competitors. The Company also intends to follow a strategy of seeking out additional synergies and new cost saving structures across its three divisions. Manufacturing, sales and marketing and management strengths and core assets from the companies that Global ePoint has recently acquired provide the Company with significant leveraging opportunities it intends to pursue and exploit.
Global ePoint is committed to building its R&D program, especially in light of technology and intellectual capital that has been incorporated to the Company through its acquisitions. The Company recently added a new business unit with the purpose of developing new technology as well as augmenting existing technology. One example of this business unit’s efforts is the development of breakthrough compression technology for next–generation digital video and Internet–protocol applications for commercial, consumer, and other security and surveillance needs.
The Company is developing proprietary Internet protocol (IP) camera for special weapons and tactics team (SWAT) surveillance operations to transmit real–time, streaming video and audio. This is a very powerful information gathering, transmitting and sharing technology in pressing demand by the nation’s diverse network of first responders, law enforcement and intelligence organizations. The Company is also active in supplying technology and products to the military and defense marketplace; it has previously announced delivery of a prototype advanced digital video recorder that is currently undergoing evaluation for use in U. S. Air Force B–1 Bombers.
Global ePoint is expanding its marketing and sales efforts to build brand awareness of our security products and applications across diverse and emerging market places. The Company intends to pursue strategic relationships where appropriate. It has already successfully entered the Mexican contract electronics marketplace, supplying 40,000 personal computers in the last quarter of 2003 to customers there, with continuing sales development efforts in progress. The Company is also developing initiatives to provide digital video security recorders to the Mexican banking industry, which are now required by law to be installed in banks in that country. The Company intends to continue to expand globally as demand for its higher–end PC systems grows. In addition, with demand increasing for security products, strategic alliances will help the Company gain more rapid market penetration and revenue growth.
The Company intends to continue and extend its successful track record of identifying, closing and integrating acquisitions established. Over the past two years, Global ePoint closed major acquisitions in each of the Company’s three divisions. Airworks, Inc. provided core surveillance technology integral to cockpit security in aircrafts. Perpetual Digital enabled the Digital Technology division to greatly enhance product offerings in the digital video surveillance space. The acquisition of intellectual property from Sequent Technologies, Inc. brought an extensive portfolio of proprietary technology in the design, development and manufacture of video transmission systems. The Company will continue to examine unique and complimentary technologies, but will remain careful to determine which firms offer the best and most accretive fit. Shareholder value is a top priority; the Company will never undertake an acquisition without thorough due diligence and 100% confidence in the long term effects of any acquisition on its business.
Global ePoint is enthusiastic about its early successes and the numerous milestones achieved to date. Most importantly, the Company looks forward to substantial growth in revenues, earnings and, ultimately, in shareholder value. The Company is positioned to create market momentum within the homeland security arena in order to further expand brand awareness and cultivate new strategic alliances. Global ePoint’s mission is to become the leading force in digital surveillance, homeland security and information–gathering applications, while building upon consistent revenues in contract manufacturing of personal computers and electronics.
|About Global ePoint, Inc.
Global ePoint’s growth catalyst, through its wholly-owned subsidiaries, is the design, manufacturing, sales and distribution of digital video surveillance systems for the law enforcement, military, aviation and homeland security markets. On the cutting edge of digital technology and seeking to expand its product line, Global ePoint is developing new compression technologies and next–generation, secure network digital video systems and servers for a wide range of new markets, concentrating primarily on security and homeland defense applications. As a solid recurring revenue stream, the Company also manufactures customized computing systems for industrial, business and consumer markets, as well as other specialized electronic products and systems. Complete vertical integration — from design and manufacturing to sales and distribution — allows the Company to capture efficiencies and maintain cost advantages in these growing markets, particularly homeland security. For more information, please visit www.globalepoint.com.