posted
Time for a new thread.....Looks like the company is heading in the right direction under new management. The third qtr numbers show that they are getting their spending under control and they improved their net income.
Homeland Integrated Security Systems, Inc. A GLOBAL TECHNOLOGY COMPANY November 15, 2006 To Homeland Integrated Security Systems, Inc. Shareholders: First of all, I would encourage you to read my earlier two letters dated July 27th and October 20th if you haven’t already. These letters each contain information that I will refer to in this letter. All the CEO letters can be accessed at our web site, www.hissusa.com. As most of you know, Homeland Integrated Security Systems (HISS) implemented a leadership change effective July 1, 2006 when I became CEO and President. This change was significant, because it meant that the two founders of HISS had both left the company. We have new leadership with new thinking in place now. In those four and a half months, the new team has undertaken a total review of the company. This was a review of our entire operation from culture, strategy, and operations including financial reporting. Our team went back to August of 2004 when the company was incorporated. As a result of the financial part of our review, our management team decided to adjust 2006 financials to reflect changes in earlier period statements. These changes were caused by a number of factors which are outlined in the notes to our financial statements. The adjustments that were made had a negative effect on our numbers through the first three quarters of 2006. Another area of review was our approach to public relations, investor relations and other aspects of promoting the company in the market. The result of this review was our recent announcement that Big Apple Consulting of Longwood, Florida and HISS had agreed to terminate the existing consulting agreements. Both parties agreed that it would be in everyone’s best interest to make a change. Since then we have been carefully reviewing consulting firms and will be making an announcement very shortly on our new Investor Relations partner. At the moment this change has caused some difficulty with taking investor and broker calls. Please be patient until we secure our new contracts. Cost reduction was another area that our team focused on. Our efforts in this area have resulted in a significant decrease in operating costs. In the third quarter we reduced selling and administrative expenses by more than 44% from the first quarter. This translated in a reduction of our losses by more than 44% as well. We also reduced our costs this year, by suspending our executive salaries until 2007. As we had announced earlier in the year, our executive team was issued restricted stock in lieu of salary. Not only did this reduce costs, but more importantly, it showed the faith that our officers have in the future of the company. We also reviewed our marketing and product development activities. Those who follow our company closely know that HISS was formed primarily to provide ports and military facilities with state-of-art security systems. Key products, such as the Cyber Tracker were designed with the port vertical in focus. HISS concepts for tracking, monitoring and directing traffic on a port were tested and proved successful. HISS conducted a research project at a major Southern Port and co-published a “white paper” which detailed the successful results. At the same time, HISS began to develop other security products for ports such as the Cyber Rad concept. Cyber Rad was conceived as a product that could increase the number of containers being screened for radiation as they were loaded from vessels, trains, and trucks. CEO letter to HISS Shareholders November 15, 2006 Page 2 HISS management felt that we were poised for growth in the port vertical. However, what management learned was that doing business in the ports is very complicated. The budget approval process and the priorities of the ports are tied to local communities and national governmental organizations. This made selling HISS products very time consuming and for a start-up company with limited resources, the payback in this vertical was questionable. HISS also contracted with manufacturers of other security products and became marketing agents for these products. In some cases, exclusive contracts were secured in certain geographic areas. Much of this effort was focused on developing a product line that would service HISS marketing partners in the UK and Middle East. Unfortunately, delays in securing export licenses, followed by political upheaval in the region has had a negative affect on this strategy. In July, when the new management team took leadership of the company, we held a strategic meeting in Asheville which included our entire team. A new strategy emerged. The management team decided to focus our efforts on the most unique asset that we had, the Cyber Tracker. We also determined that full utilization of the Cyber Tracker had to progress it beyond merely tracking. The Cyber Tracker is a “smart box” that can track, monitor, Geo Fence, and transmit data. It can make decisions without an operator or where there is no wireless reception. Our technical team has added programming and hardware so that the Cyber Tracker can interface with a multitude of input/output sensors. Focus on the Cyber Tracker will enable us to build a strong foundation for us to develop other proprietary products in the future. The opportunities for the enhanced Cyber Tracker are nearly unlimited. Some of our recent sales best illustrate this: • Two wireless carriers in Jordan and are using the Cyber Tracker for applications such as tracking busses and for transmitting pictures from cameras over their networks • An Atlanta based trucking company is setting up a command central that will allow them to view all the dump trucks throughout Metro Atlanta and have purchased the Cyber Tracker as the tracking device on this project • An major international equipment rental company with 65 domestic franchises and 62 international franchises is currently testing the Cyber Tracker for use in preventing theft of rental equipment • An oil industry service company is using the Cyber Tracker for their air patrol fleet that monitors pipelines • A west coast maintenance company is using the Cyber Tracker to monitor street sweeping activities • The Cyber Tracker is being used for under cover tracking in a metropolitan police force • A school system is using the Cyber Tracker for tracking, temperature monitoring and video transmission • A major rental car company purchased and tested the Cyber Tracker for tracking rental vehicles • An oil company is using the Cyber Tracker to track tankers and insure that fuel loads are not stolen • An ambulance fleet is using the Cyber Tracker to track and monitor driving habits CEO letter to HISS Shareholders November 15, 2006 Page 3 HISS also has these proposals pending: • An environmental services company is considering a solar powered Cyber Tracker for tracking trailers and communications with operators • A wireless carrier in Singapore is considering the Cyber Tracker for tracking busses • A proposal to provide the IT infrastructure, Asset/Inventory management and Telecommunications for a major South American project in the oil industry • Tennessee is considering the Cyber Tracker for tracking and communications with prisoner buses • A compressor company is considering the Cyber Tracker for monitoring the performance of cooling units on trailers to avoid load spoilage There are just some of the many diverse applications that involve the Cyber Tracker and show that we have value added for a wide number of market verticals. And we can see the momentum building. October was our highest sales month for Cyber Trackers ever! In addition, our team has conducted a series of demonstrations for the Sprint sales teams. These demonstrations have been conducted in conjunction with our partners at Act Soft, Inc. Some of the locations included Atlanta, Nashville, New York, Boston, Chicago, Detroit, Columbia, Charlotte, Richmond, D.C., and Buffalo. Demonstrations included using the Cyber Tracker to remote start, lock/unlock doors, turn lights on and off, monitor current temperature and open/close doors and hatches. Sprint teams also got to see themselves on Blackberrys from the camera mounted in our demonstration vehicle. The teams were also able to access the Cyber Trackers remotely from a number of devices with internet connection to modify settings. These sessions have built awareness among Sprint teams of the capabilities of the Cyber Tracker. In addition, the relationships among Act Soft, Sprint and our personnel were strengthened. I would like to close with some comments about our stock price and enterprise value. As I have said in previous letters, the market forces affecting our stock price are complex and beyond our immediate control. We have a long range strategy to enhance the value that the company can offer to investors. It is quite simple and has two parts. First, we want to reduce the number of shares outstanding. We will do this whenever we can. Secondly, we need to grow sales, control costs and increase profits. I would again reassure our share holders that the HISS Board is working very hard to bring the success to the company. We are confident that we have a long term strategy that will accomplish this. Sincerely, Fred Wicks CEO and President Homeland Integrated Security Systems, Inc.
-------------------- Growing old is mandatory!......... Growing up is optional! Posts: 527 | From: Pennsylvania | Registered: Apr 2004
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posted
The link to the financials returns a "page not found" message. Please check it. Thanks.
Posts: 1772 | From: Oxford, PA, USA | Registered: Oct 2004
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-------------------- Sometimes the poorest man leaves his children the richest inheritance. Posts: 804 | From: Woodbridge, Va | Registered: Aug 2005
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And you people think this is good? Can any of you read? There are more negative numbers than positive, and we have under $50000 cash? Are you NUTZ??
Posts: 1772 | From: Oxford, PA, USA | Registered: Oct 2004
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