Paying Off Debt and Moving to Profitable State Primary Focus
ONGO – Stock Guru Profile – On the Go
On the Go keeps going and going and going! Toronto based On the Go , a multi-industry computer hardware, software and systems integrator, completed paying in full a Promissory Note to Dutchess Private Equities Fund, L.P. and Dutchess Private Equities Fund, II, L.P., months in advance of the Note’s due date. On The Go has effectively eliminated payments on $2.89M of outside debt and all in advance of each respective due and/or conversion date. Coming much closer to a positive cash flow position, On the Go intends to eradicate as much debt as feasible, and as quickly as possible, to bring the Company to a profitable state.
The company arrived at this position with their implementation of a tighter, efficiently executed business plan allowing them to move closer to a profitable and debt-free status.
* OTG completed paying in full the January 2006 promissory note for $400,000 attached to the acquisition of healthcare and medical diagnostic division Island Corporation over four weeks early.
* Further representative of OTG’s continued focus on the reduction and elimination of outside debt, the Company announced two additional early repayments in April: a promissory note for $1.24M to supplier Synnex Canada Limited, three weeks in advance of the note’s due date, and a promissory note to Dutchess Private Equities Fund, L.P. and Dutchess Private Equities Fund, II, L.P. for $1.25M well in advance of the June 30, 2007 conversion date.
The Company eliminated $2.89M of outside debt in a 6 week period.
* Margins continue to increase well into the 3rd Quarter from the strong numbers established in the 9 months previous. OTG is maintaining an ongoing decrease in its Cost of Sales and Selling, General & Administrative Expenses, as well as an increase in Gross Profit. The Company has been more selective in orders processed and new clients taken on, focusing on transactions that are more industry-innovative, and continues to increase the professional services revenue mix resulting in increased gross margins across all divisions.
Revenue growth both now and in the quarters to come will be positively reflective of OTG’s more targeted and selective outlook.
* Staff numbers have leveled off at 42, down considerably from the year previous, with absolutely no interruption in the efficiency of day-to-day operations.
These steps have allowed On the Go to dramatically reduce outside Company debt and increase margins as much, and as quickly, as possible. With that, we remain well on track to achieve our goal of profitability and continue to strengthen our industry visibility and respected standing.
About On The Go Technologies Group
On The Go Technologies Group is a North American corporation focused on acquiring versatile and profitable companies in the IT sector. OTG and its divisions: OTG Enterprise, catering to Fortune 1000 and SME clientele and vendors such as HP, Apple, IBM, SGI, Extreme Networks and Adobe; OTG Digital Media & OTG Creative, prominent systems integrators in the U.S. and Canadian digital entertainment industry; OTG Healthcare, compiling digital solutions and networks for the diagnostic medical community; OTG Research, providing solutions to the education, funding and research communities; and in-house multimedia studio Go Motion + Design, have established themselves as a respected and sought after industry competitors. The Company’s intention is to maintain sustained growth in the years to come via continued organic development in its existing divisions and an aggressive acquisition schedule.
For more information, visit http://www.otgtech.com%20or http://www.otgtech.com/video.
To view a company profile, visit http://www.otgtech.com/pp.pdf.
To be added to On The Go Technologies Group’s e-mail list for company news, visit http://www.otgtech.com/new_site/inv_pkg_form.htm.
Source: On the Go
Stuart Turk, CEO
On The Go Technologies Group
85 Corstate Avenue
Concord, Ontario L4K 4Y2
Canada
Phone: (905) 669-7979
Toll Free: (800) 295-5877
Fax: (905) 660-5738
Email: info@otgtech.com
This release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements contain words such as “expects,” “believes,” “anticipates” and “intends.” Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, economic conditions affecting the B2B environment; continued ability to obtain hardware, software and peripherals at competitive costs; the company’s ability to finance its planned expansion efforts; the company’s ability to manage its planned growth; and changes in regulations affecting the company’s business and such other risks disclosed from time to time in the company’s reports filed with the Securities and Exchange Commission. The company does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in management’s expectations, except as required by law.
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