posted
Modern Technology Corp. Estimates 300% Revenue Growth Over Same Period Compared to Prior Year
20 March 2006, 3:06pm ET
Modern Technology Corp (OTC BB: MOTG), a diversified technology development and acquisition company, announced today it estimates revenues for the three-months ending March 31, 2006 to be approximately $4,620,000, or an approximate 300% increase over the same period last year which reported revenues of $1,547,793 for the three months ending March 31, 2005.
Anthony Welch, Modern Technology Corp's Chairman, said, "As we have committed, we deliver. Our model of continuous growth brings us closer to true economies of scale and higher earnings potential for 2006. We are poised for impressive results even without further acquisitions. Fortunately, we have acquisitions under consideration now, that if completed, will place us above $65,000,000 for 2006."
About Modern Technology Corp
Modern Technology Corp, a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MOTG improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MOTG also commercializes new technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to build shareholder value through a model of continuous growth. Web Address: http://www.moderntechnologycorp.com
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Modern Technology Corp. Founded 1982 Began trading publicly July 2004 CEO: Anthony K. Welch
MOTG is a technology acquisition and development company which builds revenue through acquiring companies, developing their products and services, and reducing costs by interlinking subsidiaries products and services.
Audited Revenues for the 6 months ended December 31, 2005: $3,120,624 Pro Forma Revenues 2006: $65,000,000 Audited Assets ending December 31, 2005: $9,679,117
Portfolio
MOTG owns 51% of Sound City, a high-end consumer electronics company. Sound City is rapidly expanding its footprint in the NY/NJ area and has opened 2 new stores in the last 6 months. Watch for news on this important MOTG-owned company as they are constantly announcing new contracts and product lines. The last Sound City contract was with T.G.I.Fridays for the installation of flatscreen televisions in 18 of their NY/NJ area restaurants.
H-Net is the most promising of MOTG’s acquisitions this year. H-net produces software used by virtually every major eyecare company in the US. Lenscrafters, Pearle Vision, Wal-Mart, and Macy’s eyecare centers are a few of the companies using the H-net technology. As part of its technology development initiative MOTG is working to introduce H-net to the medical industry and may be working on introducing it to the insurance industry as well. H-net is expected to produce revenue for MOTG in late 2006. It has been hinted at by CEO Welch that the H-net company may be a future spin-off with free shares going to MOTG stockholders. Watch for news of future H-net contracts as Welch pushes this technology into parallel industries.
MOTG acquired 51% of INmarketing Group late in calendar 2005. INmarketing is an online employee incentive and reward program with an impressive client base including Sharp Electronics, Nicklaus Golf Equipment, Waldbaums, A&P Supermarket, Bayer Diagnostics, Snapple Beverages, and, recently announced, St. Paul Travelers. INmarketing’s audited revenues for 2005 were $13.5m. INmarketing Group recently announced record revenue totals for the month of February. MOTG will report INmarketing’s revenues for the first time this May. Stay tuned for future contract announcements and revenue increases for INmarketing Group.
It may also be of interest to shareholders that MOTG CEO Anthony Welch is also the chairman of Energy Vision, Int’l, which MOTG also holds a $1.5 convertible note in. Energy Vision International, formerly DeMarco Systems, trades on the pinksheets under ticker symbol EGVI. Energy Vision Int’l owns an exclusive patent in providing heating and air conditioning through the thermal properties of managed water.
Welch has maintained several goals for his company Modern Technology Corp in 2006. Among these goals are being listed on a national exchange. This would bring MOTG off the bulletin board and onto the tech-heavy Nasdaq or American Stock Exchange.
Welch has also been speaking of "big" acquisition under consideration which would put revenues for MOTG close to $65m annually. While Welch is unable to comment on such a manuever or who the target of such an acquisition might be, message board talk has focused around the company Harvey Electronics. Harvey, currently listed on the Nasdaq under ticker symbol HRVE, has received repeated delisting notices from the Nasdaq for failure to maintain the minimum required $1.00/share price for listing. Seeing the unenviable financial state of HRVE, seeing the obvious ties between Harvey Electronics and MOTG subsidiary Sound City Electronics, noting that both Harvey and Sound City are located in the NY/NJ area, and noting that the two companies at one time shared an employee it is not too hard to discern that HRVE might be the target of MOTG’s acquisition. This is only a rumor however and has not been confirmed by management.
MOTG is approaching its 52 week low despite its highest assets and revenues since listing on the OTCBB. The revenues, though familiar to MOTG shareholders, have not yet been seen by the market. The quarter ending March 31, 2006 will reflect the increased revenues of MOTG’s acquisitions for the first time in a 10-QSB.
posted
Modern Technology Corp Revises Revenue Guidance Upward for 2006 With $65,000,000 Target
7 February 2006, 2:29pm ET
Modern Technology Corp (OTC BB: MOTG), a diversified technology development and acquisition company, revised its revenue goal upward and expects to achieve $65,000,000 in annualized revenues for calendar year-end 2006. The company's revenue projections in the absence of any further acquisitions is $25,000,000 for 2006. The company has acquisitions under review now, that if completed, will bring 2006 revenues above $65,000,000.
Anthony Welch, Modern Technology Corp's Chairman, said, "For the last 12 months, we have consistently demonstrated our ability to deliver results. Our revenues and operational results grow every week and demonstrate our continuous growth model at work. Should we complete the acquisitions in our current pipeline, our revenues for 2006 will easily exceed $65,000,000. We release this guidance today to acknowledge our stockholders' need to be informed on a regular basis. We will release our earnings guidance soon. We are working on operational efficiencies and cost-reductions across all business units. Stockholders should ready themselves for a bracing 2006 and continued impressive results."
About Modern Technology Corp
Modern Technology Corp, a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MOTG improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MOTG also commercializes new technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to build shareholder value through a model of continuous growth. Web Address: http://www.moderntechnologycorp.com
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
posted
I'm glad we started a new thread. It surely cannot hurt. Maybe we'll have a more positive karma now. I hope the Q is at least filed on time. Let go AW. Posts: 1289 | Registered: Dec 2005
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posted
For any new investors, MOTG is about to release its biggest quarterly in it's history on the OTCBB. To make matters even more enticing, the stock is almost at its 52 week low.
1 year:
3 months: Posts: 953 | From: Southwest USA | Registered: Nov 2005
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posted
I believe the quarter filing will be filed 45 days after March 31st. I expect to see MOTG steadily rise as we get closer to filing in mid-May. Investors are going to jump on this with MOTG's 300% revenue increase when we get the official numbers in the filing in mid-May. Its ridiculous MOTG is trading in the mid .02s, A lot of upside potential from here, should easily reach .08 or so with the acquisition news and maybe as high as .15-.20. Ive been buying the past couple of weeks and have acquired 400k shares of MOTG averaged at .02474 Hopefully we will see a PR here soon to maintain the pps for the time being. GLTY
Posts: 216 | Registered: Mar 2006
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posted
Stocktrader: Very nice average, I'm jealous.
Nice work everyone.
Third quarter results may be the pay day a lot of us have been waiting for (or at least the chance to break even).
For the long term, if the merger which Welch has been working on becomes a reality, the upside could be well worth the risk. A lot of us have held on to MOTG since the middle of last year and are very anxious to finally see good results. So far, Anthony Welch has given us everything as promised (albeit a tad late). Once we start an upturn, the convertible debt shouldn't be as much of a factor as it has been in the past. Only time will tell.
Posts: 807 | From: Upstate NY | Registered: Dec 2005
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posted
Modern Technology Corp Initiates Tender Offer to Acquire Harvey Electronics Monday April 3, 3:38 pm ET
OXFORD, MS--(MARKET WIRE)--Apr 3, 2006 -- Modern Technology Corp (OTC BB:MOTG.OB - News) a diversified technology development and acquisition company announced today the formal commencement of a Tender Offer to stockholders of Harvey Electronics pursuant to Regulation 14D of the Securities and Exchange Act of 1934, as Amended. A "SCHEDULE TO" Tender Offer Statement Pursuant to Section 14(d)(1) or 13(e)(1) of the Securities Exchange Act of 1934 will be timely filed with the Securities and Exchange Commission subsequent to this announcement.
ADVERTISEMENT The summary of the offer's terms and some answers to common questions appear below.
Anthony Welch, Modern Technology Corp's Chairman said, "We feel this to be an outstanding offer to current Harvey Electronics stockholders. Not only does this offer provide a superb cash distribution and excellent premium above market price, but it also provides an equity position in the new larger organization. Stockholders of Harvey will continue as stockholders of a new and more powerful combined organization, with far greater market liquidity, a fantastic vision, a model of continuous growth, and expecting to generate a profitable $65,000,000 in revenue for 2006. We welcome the stockholders of Harvey Electronics to our bold vision for the future."
Modern Technology Corp is offering to purchase 51% of the outstanding shares of common stock of Harvey Electronics, Inc. (NasdaqSC:HRVE - News) for $1.15 per share, upon the terms and subject to the conditions set forth in this Offer to Purchase. The following are some of the questions stockholders may have and answers to those questions.
Who is offering to buy my securities?
Our name is Modern Technology Corp. We are a Nevada corporation formed in 1982. We are a diversified technology development and acquisition company, building revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MOTG improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MOTG also commercializes new technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to build shareholder value through a model of continuous growth. Web Address: http://www.moderntechnologycorp.com.
What securities are you offering to purchase?
We are offering to purchase 51% of the outstanding common stock of Harvey Electronics, Inc. We refer to one share of Harvey Electronics, Inc. common stock as a "share" or "Share." No shares will be purchased if less than 51% are Tendered. No shares will be purchased beyond the first 51% tendered.
How much are you offering to pay for my securities and what is the form of payment?
We are offering to pay you $1.15 per share in cash and stock without brokerage fees, commissions or, except in certain circumstances, transfer taxes. The offer consists of $0.80 per share paid in cash upon expiration of this Offer, and $0.35 in Convertible Warrants per share payable at the expiration of this Offer.
The Warrant holder shall have the right to exchange his Warrant, at any time, for Common Stock in Modern Technology Corp and the Warrant holder will be guaranteed a number of shares of Modern Technology Common Stock worth no less than $0.35 at the time of Conversion. If the Market Price of Modern Technology Corp is above $0.35, the Warrant holder shall be entitled to one share of Modern Technology Corp Common Stock. The Warrant holder is under no obligation to sell the Common Stock he receives under exercising his Conversion privilege. Modern Technology Corp believes this provides the Warrant holder the ability to participate in the anticipated growth of Modern Technology Corp while at the same time, providing the ability to redeem his warrant for marketable securities at a guaranteed minimum.
Do you have the financial resources to pay for the shares?
We will need approximately $1,500,000 to fund the initial cash portion of the offer for all shares and to pay related fees and expenses. As of April 3rd, 2006, we have secured a commitment from our investors to provide $1,500,000 in cash to support this Offer. The equity portion of the Offer will be issued to all stockholders of Harvey Electronics who have tendered their shares. This equity distribution will be authorized and effected pursuant to a Board Resolution of the Board of Directors of Modern Technology Corp upon completion of the Tender Offer process.
Is your financial condition relevant to my decision to tender in the offer?
Because the form of payment consists of cash and securities with guaranteed minimums, and is not conditioned upon any financing arrangements other than from our investors, we do not think our financial condition is material to your decision whether to tender in the offer. However, you may view our most recent quarterly and annual financial information by visiting our filings with the U.S. Securities and Exchange Commission at www.sec.gov.
What does the Board of Directors of Harvey Electronics, Inc. think of the offer?
Harvey Electronics Inc.'s Board of Directors has not approved this offer or otherwise commented on it as of the date of this Offer to Purchase. Within 10 business days after the date of this Offer to Purchase, Harvey Electronics, Inc., is required by law to publish, send or give to you (and file with the Securities and Exchange Commission) a statement as to whether it recommends acceptance or rejection of the offer, that it has no opinion with respect to the offer or that it is unable to take a position with respect to the offer.
How long do I have to decide whether to tender in the offer and how does the offer expire?
You have until the expiration date of the offer to tender. The offer currently is scheduled to expire at 12:00 midnight, New York City time, on Monday, May 1, 2006. We do not intend to extend the expiration date of the offer at the present time. If the offer is extended, we will issue a press release announcing the extension at or before 9:00 A.M. New York City time on the next business day after the date the offer was scheduled to expire.
We may elect to provide a "subsequent offering period" for the offer. A subsequent offering period, if one is included, will be an additional period of time beginning after we have purchased shares tendered during the offer, during which stockholders may tender, but not withdraw, their shares and receive the offer consideration. We do not currently intend to include a subsequent offering period, although we reserve the right to do so.
The Offer will expire upon the first 51% of the common stock of Harvey Electronics being Tendered.
The Offer will expire in the event the Board of Directors of Harvey Electronics and Modern Technology Corp enter into a Definitive Agreement whereby Harvey Electronics and Modern Technology Corp agree, in substantive part, to a plan of acquisition or sale of assets resulting in Modern Technology Corp being the majority or sole owner of the common stock or assets of Harvey Electronics. Stockholders would receive a Proxy to cast their vote on the proposed transaction subsequent to a Definitive Agreement.
What are the most significant conditions to the offer?
The offer is conditioned upon, among other things there being validly tendered and not withdrawn before the expiration of the offer a number of shares representing at least a majority of the total number of shares outstanding on a fully diluted basis.
How will I be notified if the offer is extended?
If we decide to extend the offer, we will inform American Stock Transfer & Trust Company, the depositary for the offer, of that fact and will make a public announcement of the extension, no later than 9:00 A.M., New York City time, on the next business day after the date the offer was scheduled to expire.
How do I tender my shares?
To tender shares, you must deliver the certificates representing your shares, together with a completed Letter of Transmittal and any other required documents, to Registrar and Transfer Company, 10 Commerce Drive, Cranford, New Jersey 07016, Tel: (908) 497-2300 not later than the time the offer expires. If your shares are held in street name by your broker, dealer, bank, trust company or other nominee, such nominee can tender your shares through The Depository Trust Company. If you cannot deliver everything required to make a valid tender to the transfer agent before the expiration of the offer, you may have a limited amount of additional time by having a financial institution (including most banks, savings and loan associations and brokerage houses) that is a member of a recognized Medallion Program approved by The Securities Transfer Association Inc., including the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchange Medallion Program (SEMP) and the New York Stock Exchange, Inc. Medallion Signature Program (MSP), guarantee, pursuant to a Notice of Guaranteed Delivery, that the missing items will be received by the depositary within three Nasdaq National Market trading days. However, the depositary must receive the missing items within that three trading day period.
Until what time can I withdraw tendered shares?
You can withdraw tendered shares at any time until the offer has expired, and, if we have not by May 7, 2006, agreed to accept your shares for payment, you can withdraw them at any time after such time until we accept shares for payment. You may not, however, withdraw shares tendered during a subsequent offering period, if one is included.
How do I withdraw tendered shares?
To withdraw shares, you must deliver a written notice of withdrawal, or a facsimile of one, with the required information to Registrar and Transfer Company while you have the right to withdraw the shares.
When and how will I be paid for my tendered shares?
Subject to the terms and conditions of the offer, we will pay for all validly tendered and not withdrawn shares promptly after the later of the date of expiration of the offer and the satisfaction or any waiver of the conditions to the offer relating to governmental or regulatory approvals. We do, however, reserve the right, in our sole discretion and subject to applicable law, to delay payment for shares until satisfaction of all conditions to the offer relating to governmental or regulatory approvals.
If a majority of the shares are tendered and accepted for payment, will Harvey Electronics, Inc. continue as a public company?
Harvey Electronics, Inc. will continue to be publicly owned. However, if we purchase all the tendered shares, there may be so few remaining stockholders and publicly held shares that the shares will no longer be eligible to be traded on a securities exchange, there may not be a public trading market for the shares, and Harvey Electronics, Inc. may cease making filings with the Securities and Exchange Commission or otherwise cease being required to comply with the SEC rules relating to publicly held companies. In either case, Harvey Electronics will continue its operations as a majority owned subsidiary of Modern Technology Corp.
If I decide not to tender, how will the offer affect my shares?
At the present time we are not offering to purchase any shares beyond 51% of the common stock of Harvey Electronics. We may make such an offer in the future. The remaining 49% of the Common Stock, the number of stockholders and the number of shares that are still in the hands of the public may be so small that there will no longer be an active or liquid public trading market (or, possibly, any public trading market) for shares held by stockholders other than Modern Technology Corp., which may affect prices at which shares trade. Also, as described above, Harvey Electronics, Inc. may cease making filings with the Securities and Exchange Commission or being required to comply with the SEC rules relating to publicly held companies.
What is the market value of my shares as of a recent date?
On March 31 2006, the last full trading day before the announcement of our intention to commence the offer, the last reported sales price of Harvey Electronics, Inc. common stock reported on the Nasdaq National Market was $0.65 per share. Please obtain a recent quotation for your shares prior to deciding whether or not to tender.
What are the federal income tax consequences of participating in the offer?
In general, your sale of shares pursuant to the offer will be a taxable transaction for U.S. federal income tax purposes and may also be a taxable transaction under applicable state, local or foreign income or other tax laws. You should consult your tax advisor about the tax consequences to you of participating in the offer in light of your particular circumstances.
Who can I talk to if I have questions about the offer?
You can call Modern Technology Corp at 1.662.236.5928.
Posts: 1351 | From: Phoenix Az | Registered: Nov 2005
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posted
I think we should start another new thread in the next days when (if) the offer is accepted!
Posts: 953 | From: Southwest USA | Registered: Nov 2005
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posted
I forgot that daylight savings was this weekend. AZ doesn't observe it so the market closes an hour earlier today. Closed up 16% on the day - gapper tomorrow!
Posts: 953 | From: Southwest USA | Registered: Nov 2005
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posted
Dang! I just sold my shares on March 30th for .027, I got sick of looking at the red numbers. Bought back in December at .06. I only had a few thousand shares so not a huge loss...maybe I should get back in?
Posts: 942 | From: Wisconsin | Registered: Jan 2006
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posted
Damn-I wish I woulda held my HRVE shares....oh well. I don't even us insider information to my benefit!
Let's hope that we have a week of GREEN GREEN GREEN.
This is great news guys. I think that many of us feel vindicated in that what we said would happen DID happen. For all those doubters out there.... HAHA.
I guess I shouldn't speak too soon. HRVE people turn in your shares! Let's get this party going!
[ April 03, 2006, 16:31: Message edited by: Katrina7 ]
Posts: 1351 | From: Phoenix Az | Registered: Nov 2005
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posted
Congrats to the longs that have held in there for so long. I always felt that we would acquire HRVE and it looks like it will come through. Hopefully this is the beginning of better things to come. What a difference some NEWS makes. Later folks.
posted
bobcat: In the short-term, it really depends on whether or not the HRVE shareholders accept the offer. If they do, we could see a nice pop. If not, my feelings are that this would still be a long-term hold if you have the patience to stay in it. Fact of the matter is, with every passing quarter, MOTG is bringing in more revenues. It's only a matter of time before they start turning a profit. Regardless of what happens, short or long-term, we are severly undervalued (and have been for a LONG time) IMO. I'm not going to throw out target numbers, because truthfully, I don't think anyone can predict that....supply and demand predicts that.
Posts: 807 | From: Upstate NY | Registered: Dec 2005
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posted
You just never know how the market may react to the news. We should however see some positive momentum for the next few days off this news. The upcoming Q's will make or break us. JMHO.
posted
In all seriousness, looking at history this stock tends to run for two days. Whether or not today counts as the first remains to be seen.
Whether or not it rebounds with a slow steady climb after the initial POP will depend on investors response to the news, and whether or not HRVE shareholders accept the offer.
I predict: mid 4's tomorrow, pullback to .03 in the middle of the week, then a slow climb on anticipation of the buyout. IMO
Posts: 953 | From: Southwest USA | Registered: Nov 2005
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