On The Go Technologies Group
(OTCBB: ONGO)
Company Continues to Move Closer to Positive Cash Flow
CONCORD, Ontario, June 13 /PRNewswire-FirstCall/ — On The Go Technologies Group (OTC Bulletin Board: ONGO; ‘OTG’ ‘the Company’), a leading multi-industry computer hardware, software and systems integrator, announced today a Shareholder update from its CEO, Mr. Stuart Turk, based on the Company’s Q3 2007 10QSB filed yesterday with the Securities and Exchange Commission. A copy of the filing is available for viewing at www.sec.gov.
On behalf of the entire On The Go team, I’m pleased to report that the first 9 months of our 2007 fiscal year — period ended April 30, 2007 — has been a robust continuation from our record year in 2006, both in terms of sales and debt reduction, and establishing a greater presence in the North American IT sales and service market.
We’re actively maintaining working towards achieving our goal of profitability and meeting our objectives of outside debt reduction and smart operational cost cutting:
– Revenues for the three months and nine months ending April 30, 2007
(’Q3′) were $5,227,452 and $18,538,153 respectively, as compared to
$8,879,319 and $22,086,515 for the same periods ending April 30,
2006.
OTG continues to focus on niche market sales and professional service
revenue mix transactions, generating more substantial margins. Our
being more selective in terms of clientele and the orders processed has
begun to strengthen our sector-wide market standing.
– The Company’s Q3 Selling, General and Administrative (’SGA’) Expenses
decreased significantly from both Q1 and Q2 this year: SGA for Q3 was
$1,027,116, down from $1,508,263 and $1,755,187 in Q1 and Q2
respectively.
The significant reduction is reflective of the overall benefits of the
Company’s cost cutting efforts, particularly the staff streamlining and
the conclusion of related severance package payouts.
– There was a notable decrease in OTG’s Loss from Operations to $112,226
in Q3 from that of $313,773 the preceding quarter.
As always, it’s the Company’s mandate to sustain a diligent effort in
effective cost-cutting all applicable operational costs to establish a
profitable position.
– OTG’s vertical efforts — the Healthcare and Digital Media divisions –
remain strong revenue generators with record sales and systems
integrations. Both sectors offer tremendous sales growth potential
into the years to come.
– We have expanded our reach in the healthcare and medical diagnostic
arena, teaming up with a veteran-owned small business and allowing the
use of our name, OTG Healthcare. In turn we are the exclusive supplier
of their healthcare solutions. Our Healthcare division also recently
received an order for a turnkey DICOM archive solution that has been
deployed within a Canadian Provincial healthcare region. The order is
significant and unprecedented as it represents the first of its kind in
Canada. It’s anticipated that the solution will become an industry
standard.
– We continue to streamline all costs and expenditures, reaching a staff
level of 42, down from over 80 just over a year ago. Revenues remain
strong and unaffected by the reductions.
OTG President and CEO Stuart Turk commented further, “The refinement of our sales and service targets, the elimination of external debts and making all operational costs and expenditures more efficient are serving us well in establishing our 2007 fiscal year as one of great consolidation and top-down corporate strengthening. We are focused on providing more innovative and tactical sales and service solutions industry-wide, and continue to position ourselves to be one of the preeminent VARs in the North American market.”
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 or 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..
This press 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.
Source: On The Go Technologies Group
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