SARASOTA, Fla.,-- Sunovia Energy Technologies, Inc., (OTCBB & OTCBB: SUNV), a global leader in the development and commercialization of high performance LED lighting systems, released today the following letter to shareholders from its Chief Executive Officer, Mel Interiano:
May 15, 2012
Today, Sunovia Energy released its SEC quarterly results for the quarter ended March 31, 2012. As you know, I accepted the CEO position at Sunovia on March 27, 2012 and I believe it is important for me to inform every investor and shareholder that the performance reported today is not acceptable and to let you know that I have already taken action in many areas to ensure that the second half of the year performance far exceeds the first half.
Over the past 60 days, we have taken steps that we believe will allow Sunovia to become a profitable company during 2013. Following are some of the actions that have been taken and policies that have been implemented in order to stabilize and grow our distribution, manufacturing and product development activities:
- Secured $5 million in financing in order to increase manufacturing capacities to a minimum of 10,000 units per month by the end of 2012.
- Hired industry experts to complete the engineering and development of our next generation Aimed Optics™ fixtures. These second generation fixtures will cost significantly less than our current units and put even more light on the road than our original fixtures, which are already the top performing street lights in the industry. I expect these next generation fixtures to begin shipping during the 3rd quarter of 2012.
- Renegotiated key supplier agreements in order to further reduce the costs of our existing LED lighting product lines.
- Finalized key distribution agreements with leading international lighting distributors, and we are in the process of selecting industry sales professionals to join Sunovia to help support this business.
- Secured the commitment of Frank Santiago and Burton "Skip" Sack to join the Sunovia board of directors.
- Finalized a Memo of Understanding (MOU) with our first global contract manufacturing partner; and expect to finalize additional agreements with other domestic and international manufacturers in the near future. We expect to disclose further information about these contract manufacturing partnerships as the definitive agreements are executed.
- Stabilized the relationship between Sunovia and one of the top three lighting companies in the world and secured their commitment to focus sales and marketing attention on our LED Aimed Optics™ product lines.
For shareholders who know little or nothing about my background, I spent 15 successful years at OSRAM SYLVANIA working with some of the best minds in the lighting industry. I understand both the lighting and semiconductor industries, and recognize the incredible opportunities that are evolving as these two industries merge. In my career, I have developed successful international distribution channels and have established and grown manufacturing capabilities quickly by implementing lean manufacturing methods. My experiences have taught me that it is critical to inspect rather than to expect. I have inspected Sunovia, and the ingredients for success are here. Sunovia's technology and products are world class, and the board of directors and founders are completely committed to the company's success.
With respect to the 18% drop in revenues for the quarter ended March 31, 2012, this was the result of the company's inability to raise capital, the lack of support to internal and external sales representatives and our inability to maintain component inventories that would allow us to grow. Typically, sales in the lighting industry run on a 6-month cycle, meaning that sales made in the first quarter of the year will be recognized in the 3rd quarter; sales in the 2nd quarter will be recognized in the 4th quarter; and so on. The issues outlined above have resulted in the unacceptable revenue performance during the first quarter of 2012. The good news is that I have addressed these issues in my first 60 days, and am confident that we are on track to have the strongest 3rd and 4th quarters in our history.
As your CEO, my primary goal is to create value by positioning our company to become a dominant "pure play" LED lighting company within the $100 billion lighting market. We are already working to accomplish this goal by: (1) increasing our manufacturing capacities; (2) hiring experienced lighting industry sales professionals; (3) hiring experienced lighting design and engineering experts to integrate our patented controls into the Aimed Optics™ fixtures; and (4) by delivering the most advanced and highest performing LED lighting products to the global market at a competitive price.
The future is bright!
Chief Executive Officer
Sunovia Energy Technologies, Inc.