ST. PETERSBURG, Fla.,
Aug. 20, 2012 /PRNewswire/ -- Infrax
Systems, Inc., (OTC.BB: IFXY), a global provider of Smart
Grid-related products and services for the Energy and Utility
industries, today issued the following letter to our shareholders
from our Chairman & Acting CEO Sam
Talari:
Dear Fellow Shareholders,
As an acting CEO of Infrax Systems, I would like to update all
of our shareholders on our current business and future strategy.
Since I took my old position back few months ago, I have given my
best to bring about culture of efficiency and work place
collaboration to increase revenue and shareholder value. We
have worked very hard on all fronts to monetize our current assets
including Lockwood technology and completing our first R&D
project, SNIC. Although with few distractions, Lockwood has
grown immensely, from almost limited revenue to close to
$6M in current sales pipeline and
growing (for first quarter 2012). It is not an easy task to build
the next big thing but, as a team with forward looking vision, we
had decided three years ago that as citizens of this great country,
something had to be done to secure our national infrastructure. So
we partnered with best of best and after two years of hard work, we
believe that we have done our part to be the first to secure our
grid and our infrastructure by introducing the SNIC. We will do
that in October at ITRON UTILITY WEEK 2012.
We have also looked at acquisitions to increase our footprints
locally and globally and we'll continue doing so in years to come.
We have made an interest in a Chinese company with a certain
synergy within the Smart Grid industry. We believe if this interest
comes to fruition, it may open China to our products and services as it will
be the largest market for years to come. The U.S. Energy
Information Administration (EIA) estimates that China will need to allocate $1.5 trillion towards Transmission &
Distribution (T&D) pipelines through 2030, which is more than
it will need to allocate for actual power generation. But our main
goal will always be to grow organically through internal
monetization and culture of efficiency.
So here are some summaries of our progress and our strategy;
Our Current business
Business – Lockwood Technology & Revenue
We have increased our efforts in generating revenue from
previous and current customers of Lockwood. For our first quarter
2012, we have built extensive channels and impressive sale pipeline
nearing $6M and growing. Our sales
pipeline included projects internationally and locally. We are also
seeing major traction from new and current fortune 1000 customers
for our products and services for renewal and upgrades. By the end
of our second quarter, Lockwood is expected to close a good portion
of its sales pipeline.
The new features, operational improvements, and added
functionality have been released as an upgrade as version v11.6. We
have started releasing this new version to our new customers and
will offer it as an upgrade or as a new instance to our current
customers.
Our development road map plan is to give the entire platform a
structural overhaul and graphical refresh by porting all of the
features and functions into a "Browser-Based" user GUI that can be
more easily deployed, managed, and updated. This would allow
Lockwood's platform to be deployed in a "Cloud-Based" architecture.
This upgrade will better position Lockwood's solutions to be sold
into the vertical markets we've identified for our next focus. This
will also allow us to better manage different licensing options,
thereby increasing revenue.
The Future is Now – Lockwood Technology
How could you manage, analyze and access millions of assets with
terabytes of information? Lockwood technology is in the process of
building the next Gen enterprise asset management software called
*XposeBD*. Using big data as its basic construct, Lockwood designs
to be in the forefront of the big data enterprise application
market targeted at large enterprises with terabytes to manage. We
are planning to release this version in calendar year 2013. We
estimate, this revolutionary product evolution will contribute
greatly to our revenue and bottom line.
Management – Lockwood Technology
As we continue expanding our team at Lockwood, we are proud with
the addition of Mr. Dave Kemman to
its management team.
Mr. Kemman started his position as the VP of Sales, Western
Division, on August 1, 2012. He has
over 20 years of progressive experience in direct sales, channel
sales, business development, marketing, operations leadership,
sales and consulting management in highly competitive segments of
the IT industry and as a senior executive, proven producer of sales
and profit with ability to pinpoint business opportunities.
Responsibilities include P&L, partnership and distribution
channel development, startup company creation, and most importantly
sales. Experience also includes IT infrastructure and process
implementation consulting.
Corporate update – Lockwood Technology
As stated in our previous letter, being in the high technology
field, building and owning sophisticated IP, we value our
Intellectual property and will ensure its protection for the sake
of the company and its shareholders. Besides our initial lawsuit
filed by Infrax Systems for IP theft with the United States
District Court against Lockwood Worldwide Incorporated,
Brad Vinecombe, Cheryl S. Reed , Bruno
Riegl and Adam Vinecombe,
Lockwood Technology has filed a separate lawsuit jointly with
Daedalus Capital with UNITED STATES DISTRICT COURT, SOUTHERN
DISTRICT OF FLORIDA, WEST PALM BEACH DIVISION, under the civil RECO
act. Currently we are awaiting important decisions by the court in
regard to our suit. We are confident that we will overcome and be
compensated for the proposed damages. Hence the lawsuit has caused
delays in spinning off Lockwood and currently we are working it
through the system to complete the spin-off.
Business – OptiCon systems
Due to the extraordinary demand created by the current global
need for broadband, there has been a resurgence of fiber builds
across the globe. The company owned OptiCon Systems is a prime
candidate for the management of fiber inventory. Hence the
company has decided to revamp and launch OptiCon Network Manager
starting in the third quarter. We are hoping with the
implementation of OptiCon that it will contribute significantly to
our revenue and bottom line.
Business – Engineering and Professional Services &
Revenue
Our newly formed operations are starting to make traction.
The Engineering and Professional Services organization was started
in April 2012. The mission of this
operation is to provide specialized engineering and professional
services for Smart Grid related activities in the power utility
industry. The customer focus is for medium to small Investor
Owned Utilities (IOU), Municipalities and Rural Electric
Cooperatives. Our areas of expertise include Smart Grid
consulting and Neighborhood area network design, Intelligent Meter
networking, Distribution Automation, Volt and VAR management
systems and networks, Intelligent sensors, SCADA data networks,
fiber optic design and construction engineering.
Although in the early stages, we are currently bidding on two
significant projects which are still in the bid evaluation
phases. The one is with an Investor Owned Utility for an
intelligent Capacitor bank communications network and the other is
with a large rural electric cooperative venture to design a fiber
optic based backbone communications network primarily used for
transmission relay circuits.
The Engineering and Professional Services organization is also
involved with the sales and support of integrated third party
products and services for Physical substation security and radio
networks to support utility infrastructure. Additionally we have
six utilities actively interested in our Substation Intrusion
detection system which we have branded as SPIDer. Currently
we have a sales pipeline in excess of $1.3Millon which is continuously increasing.
Business – Infrax Products & R&D
SNIC & Beyond
Infrax Systems has been invited by its partner Itron, as a
sponsor, to showcase its highly anticipated, world only, 2.4GHZ
Secured Network Interface Card (SNIC) built based on its Secure
Intelligent Energy Platform. Infrax will be showcasing the
relevance of security in today's world of Smart Grid and how its
ever growing product lines will build a solid barrier against
insidious intrusions through its initial product; "SNIC". ITRON
UTILITY WEEK 2012, hosted by one of the largest Meter manufacturers
in the world, is a premier international event with thousands of
participates from utilities from all over the world.
Network Transport ‐ IntelliNet
IntelliNet is a wide area multi‐layered, multi‐protocol,
multi-secured communication system, that is communication protocol
agnostic and standards compliant to manage Smart Meters (AMI, AMR),
Transmission & Distribution Systems. IntelliNet offer:
- Multi‐protocol, multi‐layered advanced communications
architecture
- Advanced wireless technology utilizing Wi‐Max technology
- Accepts data and communications from various networks and
transports over a common secured platform
- Provides efficient data flow management and logical
segmentation of devices and network domains that are user
defined
- Future enhancements to include fiber optics and PLC
With over 3.5 trillion dollars in
estimated spending on the Smart Grid related products and services
globally, we believe with the completion and the production of our
R&D products and our related services, Infrax Systems, will see
considerable revenue for the coming years.
Infrax Systems Inc. – Future products
Through modification of the SNIC, a variety of sensors and
devices that is used in the substations, distribution and
transmission grid will be provided secure, wireless communication
capability. Infrax has identified several such devices and have
initiated preliminary discussions with some of the manufacturers of
these devices. Examples:
- Capacitor bank controllers
- Voltage and current sensors
- Transformer tap changers
- Intelligent segmentation switches and re‐closures
- Hardware based security using Trusted Platform Module (TPM) for
the next version of SNIC
General update
We have just finished our move to our new permanent location on
the third floor of the Capital building. With a five years lease,
we have plenty of room to grow.
About Infrax Systems
Infrax Systems offers a series of interrelated operational
management, communications, and grid security related products and
services known as Secure Intelligent Energy Platform (SIEP). Our
products enable a comprehensive and unified solution for
communications and applications management of the Smart Grid. SIEP™
incorporates a wide array of communications, security, device and
data management tools for Smart Grid applications such as advanced
metering solutions and grid optimization. SIEP platform creates a
unified solution to securely manage Advanced Metering
Infrastructure (AMI) and distribution automation. Infrax's secure
smart grid platform, incorporates a communications transport and
management system, (GridMesh™), device and data security
management, and ultimately secures intelligent endpoint devices
(SIED). The secure management of the "last mile" backhaul will be
necessary for utilities to implement Smart Grid applications
including AMI, real-time pricing, Demand Side Management (DSM),
Distribution Monitoring and Automation. When combined, these
applications can offer economic, operational and environmental
benefits for utilities, and ultimately the utility's customers.
For INFRAX Systems information, contact Investors@Infraxinc.com
or visit www.infraxinc.com.
Forward-Looking Statements
This press release may contain forward-looking statements
covered within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among other things, plans and timing for the introduction or
enhancement of our services and products, statements about future
market conditions, supply and demand conditions, and other
expectations, intentions and plans contained in this press release
that are not historical fact and involve risks and uncertainties.
Our expectations regarding future revenues depend upon our ability
to develop and supply products and services that we may not produce
today and that meet defined specifications. When used in this press
release, the words "plan," "expect," "believe," and similar
expressions generally identify forward-looking statements. These
statements reflect our current expectations. They are subject to a
number of risks and uncertainties, including, but not limited to,
changes in technology and changes in pervasive markets.
Contact:
Media Contact:
Infrax Systems, Inc.
investors@infraxinc.com
727-498-8514
SOURCE Infrax Systems, Inc.