TORONTO, July 4 /CNW/ - The economic downturn we believe has affected a
significant portion of our end user customer base. The major impact of
lessening in demand is reflected in sales at most Club Warehouse locations,
and we understand that small business owners are being extra cautious,
resulting in the postponement of discretionary purchases. LOREX's Club
business is significant, therefore any major reduction in volume impacts the
We are and have been progressively introducing new product categories to
a widening customer base. Today, LOREX products are available in more than
9,000 locations throughout North America. It is our expectation that our next
generation of products will address the current market downturn, as we are
offering excellent security solutions at economical price levels. Our mission
is to deliver the best security solution, without compromising quality.
LOREX, over the past two years, has successfully introduced next
generation technology, simultaneously refreshed our inventory while expanding
our customer base, and restructured our overhead. As well, we have contracted
with new lenders.
As the Company was recuperating from historical issues, generating sales
growth and realizing profitability, we at LOREX believed that we would be
profitable in the current quarter and for 2008. As events have evolved and
revenues are currently below expectation, we do not expect to generate a
profit in this current quarter. Our business model is solid, and we are
confident that revenues will once again improve as we introduce exciting
product additions. Our overall business with customers in sectors other than
warehouse Clubs is growing, and we expect to attain a larger market share.
The Company is concentrating on introducing market driven value security
solutions, digital wireless technology and most importantly, addressing
marketing programs to assure customer awareness of LOREX and the new
technologies that are now available both for business and consumer markets.
Significant initiatives required to propel the Company's revenue growth
are in place. We do, as previously advised, continue to review financing
initiatives in order to provide additional liquidity.
About LOREX Technology Inc.:
LOREX Technology Inc. (TSX: LOX) global brands empower consumers and
professionals with leading-edge security video solutions delivering advanced
technology and innovative performance.
Certain information included in this news release contains
"forward-looking statements" within the meaning of applicable securities laws.
All statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future including, without limitation,
statements regarding financial and business prospects and financial outlook
and statements with respect to the next generation of products and expansion
of the Company's customer base are forward-looking statements. These
statements are based on management's current expectations and involve certain
risks and uncertainties. Any forward-looking statement speaks only as of the
date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future
events or results or otherwise. Actual results may vary materially from
management's expectations and projections and thus readers should not place
undue reliance on forward-looking statements. Certain factors that can affect
the Company's ability to achieve projected results are described in the
Company's filings with the Canadian securities regulators available on
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
For further information:
For further information: Jordan Schwartz, Chief Financial Officer, LOREX
Technology Inc., Phone: (905) 946-8589 ext. 168,