VANCOUVER, Feb. 10, 2015 /CNW/ - Smartcool Systems Inc. (TSX-V: SSC) Ted Konyi, Chairman and CEO of Smartcool, is pleased to provide a corporate update.
"After founding Smartcool Systems Inc. in 2004, I have returned to the company as CEO to provide new strategic focus for growth.
Smartcool owns a proprietary algorithm that improves the efficiency of compressors used in air conditioning, refrigeration and heat pump systems. With over 30,000 installations completed worldwide over the last 10 years, it's clear that the technology is proven and effective.
Sales of Smartcool products have been made through both direct sales efforts and independent product distributors. While these sales channels have had success, more targeted efforts are now being applied to improve the overall sales volume for the company.
We have assessed the market for Smartcool products and in order to achieve scalability, our new product development incorporating wireless communication should be quite successful, and we have dedicated resources to this effort.
Smartcool has had a couple of challenging years, however, there has been a lot of exciting progress made with respect to the development of product features providing remote communications and control. The addition of new distribution and sales channels for the current line of products with these new benefits will allow for introduction to an expanded customer base.
Smartcool currently has 15 distributors worldwide in addition to Smartcool's United Kingdom and US direct marketing efforts. Having canvassed the distributors for their projected 2015 sales expectations, many pilot programs have been completed and are moving to commercial rollout. Most distributors appear to have targeted multi location retail chains. These cover a number of verticals, including grocery stores, convenience stores and quick serve restaurants. Some of the commercial opportunities being pursued include data centres, shopping malls and hotels. The prospective multiplier effect of these multi location enterprises should lead to high double-digit growth in sales volume for the company.
The combination of increased interest in energy efficiency, improvements in costs for processing power, ubiquitous wireless connectivity and ever higher utility rates have led to better market opportunities for Smartcool.
Based on all of these factors, Smartcool has targeted $3mm as its minimum sales goal for 2015 with positive cash flow expected commencing in the second quarter. This estimate only includes a small fraction of the total number of locations where Smartcool could provide economic savings. In the US alone, current pilot programs represent a prospective audience exceeding 10,000 locations with an average sale of $1,500 per location.
In addition, as previously announced, good progress has been made on the development of products geared to refrigerated transport. Sales to this vertical are expected to commence in the second quarter. This market opportunity is measured in the hundreds of millions.
In summary, Smartcool is looking forward to a breakout year with a renewed focus on growing sales.
I look forward to sharing our successes with our shareholders."
Legal Notice Regarding Forward Looking Statements
This news release contains "forward looking statements". Forward-looking statements are projections of financial performance or future events. Forward-looking statements can be identified by the use of words such as "expect", "anticipate", "intend", "plan", "believe", "estimate" and words of similar meaning. Forward-looking statements are based on management's current expectations and assumptions and they are subject to risks that may cause actual results to differ materially from those expressed or implied by such forward looking statements. Forward-looking statements in this news release include those concerning the company's target for sales growth and positive cash flow, its anticipation that sales to the refrigerated transport vertical can begin in the second quarter and its overall expectations of a breakout year for sales growth. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statements. Risks that may prevent or delay the forward looking statements from coming to fruition as anticipated include the availability of working capital, risks inherent in product development, as well as market factors that may increase costs or time to market. It is our policy not to update forward looking statements except to the extent required under applicable securities laws. Further information on the Company is available at www.sedar.com or at the Company's website, www.smartcool.net.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in as little as 12 months.
SOURCE SmartCool Systems Inc.