December 18, 1998Volume I, Issue 16
OTC Journal Newsletter
AXYN CORPORATION (OTC BB: AXYN)
The Year 2000 problem, known to investors as Y2K, is more pervasive than most people realize. People believe that the Y2K problem only effects large companies with main frame systems that have been up and operating for years. There are literally billions of lines of code written into software in computers that will not be able to make the transition into the Year 2000.
More than a few people feel that there will be a world wide crisis on January 1st, 2,000. People believe that computers all over the world will shut down, leaving communities without basic services such as power, phones, and traffic lights. Large Companies are spending billions of dollars trying to solve this problem in their computer systems.
The Y2K problem effects 93% of the computers manufactured before 1997, including the one sitting on your desktop. The Y2K problem effects 34% of the computers built since 1997. The Y2K problem might even effect the credit card in your wallet if the expiration date is in the year 2,000. Older point of purchase gas pumps and ATMs might mistakenly believe your card has expired.
You could have a problem if you have Microsoft Office 97 in your computer. Initially, Microsoft (NASDAQ: MSFT) said there was no problem with Office 97 making the transition into the 21st Century. It appears that within certain environments the Excel Spreadsheet may have difficulty making the transition to the Year 2000.
In short, 93% of all computers manufactured before 1997 are non-compliant with making the transition to the year 2000, and 43% built since 1997 are non-compliant. All these computers will need a combination of hardware and software upgrades. The size of this market is mind boggling.
This brings us to our Current Profile: AXYN Corporation (OTC BB: AXYN). AXYN (OTC BB: AXYN) has been formed by a management team that has unparalleled experience in this industry. The Company was formed in March of 1998. A series of news releases have been flowing out of the Company over the last eight months. They have already put some strategic relationships in place that should lead to an explosion of contracts in the Y2K arena. Their first major contract was signed on November 12th with the Canadian Department of National Defence. The estimated revenue from this contract is $5 million. To read this press release, click here.
On July 20th, 1998, the company announced its first major product introduction, known as "DATA OVERLOADING"tm. This product is a hardware solution for tool vendors that are currently being evaluated by some major household names that you would recognize immediately. These larger companies are paying AXYN (OTC BB: AXYN) for the right to evaluate its product, but the real money will come with large contract signings in the future. To read this press release, link to July 20th press release.
Shortly thereafter, on September 1st, 1998, AXYN (OTC BB: AXYN) announced the signing of a letter of intent with the Guide Associates to market a product called DataManager2000. AXYN (OTC BB: AXYN) believes that this product is the premier tool available for assessment of the year 2000 PC millennium "BUG". Click here to read this press release.
The very next day, on September 2nd, 1998, AXYN (OTC BB: AXYN) announced the signing of a Joint Venture with Untra SA of Poland to market Y2K solutions to the Polish Government and companies in Poland. AXYN Corporation has an international presence through offices in Denver, Los Angeles, Ottawa, Toronto, Warsaw (Poland), Washington, and Zurich (Switzerland). Look for AXYN (OTC BB: AXYN) to announce many more strategic international relationships in the near future. Click here for this news release.
On November 12th, AXYN (OTC BB: AXYN) was awarded a contract from the Canadian Department of Defence which is valued at over $5 million. In the month of December alone, AXYN (OTC BB: AXYN) has received endorsements from both the Canadian Alliance of Manufacturers and Exporters (click here for press release), and the Canadian Aerospace Industries Association (click here for press release).
AXYN (OTC BB: AXYN) is positioning itself to become a significant global supplier of Year 2000 Technologies. Through their Date Overloading technology, AXYN (OTC BB: AXYN) has built an automated conversion engine that significantly reduces the time and costs for remediation of non-compliant legacy codes that can be licensed to end users, resellers, and Code conversion factories.
In short, over the last six months, AXYN Corporation (OTC BB: AXYN) has been selected by three major organizations in Canada which will lead the millions of dollars in high margin revenues. They have set up offices Internationally and have put strategic relationships in place in Europe which will also lead to millions of dollars in high margin revenues.
There are several more press releases concerning strategic alliances that simply reinforce our belief that this Company is positioned for explosive growth. We recommend that you read every one of them, which you can find by clicking on AXYN Press Releases.
Now, let's move on to our Final Four review which we provide on every one of our profiled companies.
The Management team that has been assembled to direct this Company is as top notch as it gets. We strongly recommend that you click on MANAGEMENT and fully review the biographies of the people that run this Company. In short, every one of the key management has had a highly successful role at a large corporation, heading large departments with many employees. They have assembled to create a result for themselves and their own future.
MR. CHRIS ZAWITKOWSKI Chairman of the Board
Mr. Zawitkowski has a Masters in Applied Mechanics from the University of Warsaw and has accumulated almost 30 years of extensive experience in United States, Canada and Europe.
Mr. Zawitkowski has been in private business for the past 15 years having established successful businesses in the USA, Canada and Europe. He serves on several boards in different capacities and responsibilities. Prior to this he has occupied senior positions with Rockwell Corporation in Los Angeles and also as Director of Engineering at Litton Industries in both the United States and Canada. He is a member of several business and executive organizations in the USA and in Europe. Mr. Zawitkowski brings considerable expertise in the Year 2000 business having been named Chairman of Year 2000 Standing Committee for the Polish Government. He is the Company's major asset in penetrating the European Market for Y2K products.
MR. SCOTT FEAGAN PRESIDENT
Mr. Feagan, the Chairman of the Board of AXYN Canada Corporation was previously President of AGISS Software Corporation, CPAD Technologies Inc., and was founder and President of AGISS Power Technologies Corporation. He brings over 25 years of business experience in various senior management positions in technology companies specializing in Year 2000 Remediation and Systems Integration.
From 1980 to 1990, Mr. Feagan held several senior positions at Honeywell Limited and was director of secure systems integration. During this time he was responsible for establishing the Canadian secure systems integration business and achieved sales in excess of $60 million. He was on the board of directors of a joint venture company founded by Honeywell, CN Telecommunications and Lavalin. Mr. Feagan completed the EMP program in 1988 at the School of Business at the University of Western Ontario where he also did his undergraduate studies in Computer Science.
Mr. ROBERT L. BELL DIRECTOR of AXYN Corporation and PRESIDENT & CEO of AXYN Canada Corporation
Mr. Bell, as President and CEO brings 30 years of project and business management experience, including the past 9 years as Vice President, of Monenco AGRA Inc. During this time Mr. Bell conceived, built and managed a successful project management, systems engineering and systems integration business with projects for clients in Canada, the US, Europe, Asia and South America.
Through Mr. Bell's leadership AGRA built effective alliances with key national and multi-national service companies and technology suppliers. Mr. Bell chaired the Management Committees for a number of project teams and joint ventures with over 200 professional and technical staff and provided over $125 million of project management and systems integration services.
Mr. Bell also brings experience in the management of the development, marketing, sales and support of innovative technology products and services and software product development. This product was alpha and beta tested with HP and ultimately sold to major technology suppliers around the world including Intel, Microsoft, Alcatel, Rockwell, Harris, GEC, Panasonic and Mitel. The business was subsequently sold for a substantial return on investment.
During Mr. Bell's earlier career, he managed the application of new technology and information systems for electric utilities, chemical, petrochemical and metallurgical companies and was responsible for building and managing project teams around the world with up to 120 professionals.
AXYN (OTC BB: AXYN) has retained Ernst & Young, one of the most respect international accounting firms, as its auditors. Their audit is nearly completed, and numbers will be released in the near future. Discussions with Senior Management at the Company lead us to believe that they are well capitalized, and positioned for future growth. We would have preferred to wait until financial statements were released to profile this Company, but we feel that significant contracts are just around the corner after the first of the year. We were impressed with the contract with the Canadian Defence Department, and contracts from members of the Manufacturers Alliance and the Aerospace Industry are imminent.
There are 12 million shares issued and outstanding, which is a fairly low number for Companies in this group. Trading in the $2 range, this gives us a Market Capitalization of approximately $24 million. We believe that the relationships they have alone are worth $24 million in potential business and value. This level gives this Company plenty of upside potential with a few contract signings.
More importantly, there are only 900,000 shares publicly traded in AXYN (OTC BB: AXYN). Extremely small public floats lend themselves to a high degree of volatility in stocks. With the Canadian Defence Department contract signed, and International business organizations endorsing AXYN Corporation as the preferred provider of Y2K solutions, a phenomenal year is in store for AXYN (OTC BB: AXYN).
Earlier in 1998 the Y2K stocks went absolutely ballistic. Stocks trading in the $2 range were suddenly in the $20 range with no contract signings. During September when we had a severe market correction, many of these high flyers came back down to earth, and ended right back where they started.
In 1999 we anticipate Companies benefiting from the Y2K phenomenon to do extremely well. Blue Chip and Internet stocks have been the darlings of Wall Street for the last two months. However, Wall Street will always pay up for growth in sales and earnings. AXYN (OTC BB: AXYN) will experience phenomenal growth in 1999. Time will tell if Wall Street will recognize this growth by buying up shares of this company's stock.
The Y2K problem is huge. Companies with solutions and the proper contacts will have unbelievable years in 1999 and beyond. Several OTC stocks trading in the $2 range rocketed into the $20 range earlier this year simply because they entered the Y2K solution business. AXYN Corporation (OTC BB: AXYN) has positioned itself to be a serious player in this arena. This is a risky situation, but risk and reward often go together. Look for this Company to have a great year in 1999, and a stock price that reflects that increased level of business activity. We could easily see AXYN (OTC BB: AXYN) achieving $50 to $100 million in sales in 1999 with $5 to $10 million in profits. This could easily lend itself to a $10 to $15 stock, if these targets are achieved, but there are no guarantees.
One other factor to be considered: Experienced small and micro cap investors know that the Year End is a great time to be looking at small stocks. AXYN Corporation (OTC BB: AXYN) has no institutional following. Smaller, retail investors are the shareholders of the publicly traded stock. This time of year, individual investors tend to focus on family and vacation, leaving stocks like AXYN Corporation (OTC BB: AXYN) to drift down on very light volume. This stock might show a handsome return to investors just on a January surge from the return of individual investors to the marketplace.
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