Business Plan For Manufacturing Company

Business Plan For Manufacturing Company-35
The same technology used in the Telco market has been applied to the industrial market for the development of a continuous monitoring system to detect spills and leaks of hazardous substances for use at factories, industrial storage facilities, high rise condominium complexes, and gasoline storage tanks, either above or below ground.FOA has sold an initial system to a major ammunition plant in Texas and is in the process of implementing an upgrade for automation of the monitoring system.

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Sales have fluctuated from year-to-year, from a low of $233,000 to a high of $700,000 during the period from 1990 to 1995.

This was due to minimal sales and marketing efforts put forth during the early years, when we concentrated our efforts on development of products and partnership agreements.

The primary focus of the Company is in the telecommunications industry, telephone operating companies, ("Telco's"), Cable TV (CATV) and Local Area Network (LAN) fiber optic markets.

To date, the Company has raised approximately $6.0 million to support research and development, product introduction to the Telco market and initial sales.

The outdoor telephone cable, splices, and repeater sites are generally known as outside plant.

Management believes there is no other product currently available which can directly monitor and locate long-range faults on fiber optic cable.

By providing "early warning" and by identifying and locating faults before an outage can occur, the system can save telephone companies as much as

Management believes there is no other product currently available which can directly monitor and locate long-range faults on fiber optic cable.

By providing "early warning" and by identifying and locating faults before an outage can occur, the system can save telephone companies as much as $1.0 million per minute in lost revenue and repair costs.

This system can also extend the useful life of telephone cable network (outside plant) significantly.

The Company has been focusing its efforts on the fiber optic segment of the telephone market, which is growing rapidly (in excess of 20% a year) on a worldwide basis.

The total market for Cablewatch application on fiber optic cables is estimated by management to grow from $156 million annually in 1993 to approximately $363 million by 1997.

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Management believes there is no other product currently available which can directly monitor and locate long-range faults on fiber optic cable.By providing "early warning" and by identifying and locating faults before an outage can occur, the system can save telephone companies as much as $1.0 million per minute in lost revenue and repair costs.This system can also extend the useful life of telephone cable network (outside plant) significantly.The Company has been focusing its efforts on the fiber optic segment of the telephone market, which is growing rapidly (in excess of 20% a year) on a worldwide basis.The total market for Cablewatch application on fiber optic cables is estimated by management to grow from $156 million annually in 1993 to approximately $363 million by 1997.FOA's business plan projects that annual sales will reach the $34.0 million level by the fifth year with net after-tax profits of approximately $10.8 million.The Company's monitoring system, Cablewatch, facilitates the continuous monitoring of fiber optic and copper cables.This has been limited due to manufacturing limitations.These numbers are based on the market size for fiber optic cables as projected by Kimbrough Marketing Inc.Since the acquisition of the basic technology and a basic patent in late 1986, the Company has developed several important products and been awarded several new patents.In addition, several more patent disclosures are being processed for the Company's latest innovations dealing with automated monitoring and fault locating of both optical fiber copper cable and for solving one of the industry's major obstacles in bringing fiber to the home or fiber to the curb.

.0 million per minute in lost revenue and repair costs.

This system can also extend the useful life of telephone cable network (outside plant) significantly.

The Company has been focusing its efforts on the fiber optic segment of the telephone market, which is growing rapidly (in excess of 20% a year) on a worldwide basis.

The total market for Cablewatch application on fiber optic cables is estimated by management to grow from 6 million annually in 1993 to approximately 3 million by 1997.

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