Seamless Technology Inc. Announces Expansion of the Services and Technology Offered by Its Ecommerce Subsidiary
15 January 2006
Seamless Technology Inc. (OTC: SLSX)
(www.seamlesstech.com), today announced its subsidiary, MerchandiZer
Software Inc., entered into an agreement with ClearCommerce Coporations
(www.clearcommerce.com) for the transactional software implementation and
with live transactions for the Company's Merchant Accounts and ISO
services. Live Transactions is a Registered Merchant Service Provider/ISO
of JP Morgan Chase (www.jpmorganchase.com) registered with Visa and
MasterCard.
MerchandiZer Software Inc will now have the capability of processing all
ecommerce transactions from all of its clients, therefore creating a new
source of revenue for the Company from each ecommerce sale generated. Prior
to the agreement with ClearCommerce, the Company relied upon third party
processing for such sales, and thereby did not receive the processing fees
associated with each transaction. Now, the Company will receive all such
processing fees, which should substantially increase its revenue stream
with little to no additional direct costs associated with such revenue
stream.
MerchandiZer has also begun a marketing campaign to small to medium sized
companies located in the United States and internationally to bring an
ecommerce component to their traditional sales channels. In this new
business model, MerchandiZer will provide its services and technology with
no to little upfront payment by the client, but rather than receive a
monthly fee and service charge, the Company will now receive a percentage
of each transaction generated through ecommerce for providing the
technology, services and processing to the client. The Company's share of
revenue for each client will range from 5% to 20% of each transaction, in
addition to the processing fees described above. MerchandiZer implemented
this program on January 1, 2006, and expects to increase its gross revenues
generated from small to medium sized companies by a minimum of $5,000,000
in 2006 at a minimum of a 50% margin.
MerchandiZer is offering its new merchants an end to end solution including
Gateway and Merchant Accounts Services, therefore making the entry to the
new Internet sales channel for small and medium sized corporations easier
and more profitable for the Company.
After adding a new sales representative in December to market to the small
to medium merchants, the Company has added 14 clients over the last 45
days. The Company is in negotiation with several other sales and marketing
organizations to represent the Company in a nationwide rollout of its new
technology and services, and anticipates hiring additional in-house
marketing staff throughout 2006. Because of the influx of new clients, its
new revenue model, and the additional sources of revenue it will now
generate, MerchandiZer is now reviewing its revenue and earnings guidance
for 2006 that it has announced to the public. It expects to announce a
substantial increase in this guidance within the next two weeks.
Krister Martinez, president of MerchandiZer in describing the new program
for small to medium sized companies, and the enhanced services offered by
the Company, stated: "We are very excited about our new program for small
to medium sized companies, which has switched our revenue model from a fee
for services model to a model where we limit the upfront costs of migrating
to an ecommerce sales model for our clients. Rather than charge a monthly
fee, as has been our policy in the past, we will now be charging a
percentage of each sale generated by our clients. As our technology is
utilized to improve and enhance the sales generated by each client through
the Internet, we will see a substantial increase in our revenues through
this revenue sharing model. Our goal in 2006, through the implementation of
this new program, is to become the leading ecommerce technology and service
company to small and medium sized companies."
ABOUT SEAMLESS TECHNOLGY INC.:
Seamless Technology is a public holding company for Internet based
technology companies. It presently owns two established technology
companies with excellent industry name recognition and reputations. The
Company has located other synergistic businesses that it intends to acquire
prior to the end of the first quarter of 2006.
The first subsidiary owned by Seamless is Pinneast Inc. (www.pinneast.com),
an eleven year-old e-Learning services provider, which is one of the only
eLearning companies that survived the shakeout caused by the bursting of
the Internet bubble, because of its large government and Fortune 500
clients. The Company recognized gross revenues in 2005 of approximately
$1.3 million with an EBITDA of approximately $300,000. The Company's
projected revenues should increase to a minimum of $2.265 million in 2006
and $3.3 million in 2007, with projected EBITDA of $823,000 in 2006 and
$1,347,402 in 2007. The Company has achieved a sustainable level of
profitability due to the multi-year contracts that it has with its clients.
Furthermore, the Company has a present order backlog exceeding $1.3m,
including 2 contracts from the US Army. Other customers of Pinneast include
Dow Chemical, Wachovia, Volvo Trucks, Delta Airlines and Johnson and
Johnson, among others. The Company offers web based course management,
learning management systems, LMS hosting and e-Learning technical support.
Unlike its competitors, who offer a product that is one size fits all,
Pinneast is capable of designing e-Learning products that are tailored to
the specific needs of each client.
The second subsidiary is MerchandiZer Inc. (www.MerchandiZer.com), which is
a seven year-old eCommerce software company and service provider that
provides end to end online services for small to medium sized companies
that want to expand their marketing to the Internet sales channel. The
Company's clients number approximately 3,000, with such well-known names as
Dole Plantations, Total Discount Vitamins, Go-To Forms and Kids Customs.
The Company's software has been awarded the PC Magazine's Editor's Choice
Award as tops in its field. The key feature of the software is that it
allows users to add customized design features, as opposed to most of its
competitors that require that the merchant/client have a store that looks
like all other stores utilizing the same software. MerchandiZer keeps its
software up-to-date with the latest advances in Internet marketing, and its
ecommerce software has an exclusive Internet marketing feature built into
its software that allows the merchants/clients to optimize their entire
catalog and categories for search engines, and achieve very high ranking,
including the first and second pages in the search engines, such as Google
and Yahoo. MerchandiZer also provides a wide range of templates that enable
web designers to customize sites. This allows merchants/clients, without
design flair, to build a respectable looking eCommerce site by simply
picking pre-packaged design themes, and then choosing from the 30 built-in
templates designed to suit every catalog layout requirement. The Company
also aids its clients with web promotion and online marketing services,
including Search Engine Optimization that increases the presence of the
site on the web, and thereby attracts more customers to the client's site.
The Company recognized gross revenues in 2005 of approximately $200,000
with an EBITDA of $50,000. The Company is projecting gross revenues in 2006
of $1,800,000 increasing to gross revenues of $2,572,000 in 2007, with a
projected EBITDA of $723,385 in 2006 and $1,470,000 in 2007. This revenue
guidance for the Company is now under review for a substantial increase.
Seamless has consolidated gross assets of over $4,400,000 and net
shareholders equity of $3,100,000. The Company's consolidated revenues have
increased from $388,000 in 2004, and a loss of ($451,000) to 2005 gross
revenues of $1,300,000 and an EBITDA of $350,000. The Company, without
considering acquisitions and other substantial projects under negotiation,
is projected to increase gross revenues to $4,065,000 in 2006 and
$4,873,000 in 2007, with projected EBITDA of approximately $1,366,000 in
2006 and 2,500,000 in 2007.
FORWARD-LOOKING STATEMENTS:
Statements about the Company's future expectations, including future
revenues and earnings, and all other statements in this press release other
than historical facts are "forward-looking statements" within the meaning
of section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, and as the term is defined in the Private Litigation
Reform Act of 1995. The Company's actual results could differ materially
from expected results. The Company undertakes no obligation to update
forward-looking statements to reflect subsequently occurring events or
circumstances. Should events occur which materially affect any comments
made within this press release, the Company will appropriately inform the
public.
Seamless Technology Inc.
3155 NW 82nd Avenue, Suite 200
Miami, Florida 33122
Phone: 305-477-8177
www.seamlesstech.com
www.pinneast.com
www.MerchandiZer.com
Contact:
Seamless Technology Inc., Miami
Borys Rafalowicz, CEO
305-447-8177
borys@seamlesstech.com
Investor Relations Contact:
Gerald Kieft or Ryan Audin
Wall Street Resources, Inc.
2646 SW Mapp Road, Suite 303
Palm City, Florida 34990
772-219-7525
www.wallstreetresources.net
SOURCE: Seamless Technology
Source: marketwire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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