LOS ANGELES, Sept. 18, 2017 (GLOBE NEWSWIRE) -- Atlas Technology International, Inc. (OTCQB:ATLT), a rapidly growing designer, manufacturer and distributor of touchscreen devices, today issued the following Special Letter to Shareholders:
“Dear Fellow Shareholder:
Atlas Technology is about to report record financial and operational results for its first full year as a publicly-traded company. And I am proud to say it certainly was a year full of a several historic milestones. I would like to take this opportunity to thank our long-term shareholders for their ongoing support, welcome our many new shareholders and discuss our background, market position, strategy and goals for fiscal year 2018.
A Story of Two Co-Founders in the Touchscreen Industry
Atlas Technology’s recent listing as a publicly-traded company was the culmination of more than 30 years of experience as executives and entrepreneurs of our Chairman and co-founder, Richard Lin, and myself in the global touchscreen technology. As our financial and operational performance clearly indicates, fiscal 2017 marked the beginning of Atlas Technology as one of the latest and most successful publicly traded U.S. listings.
Leveraging off our combined reputations as innovative and reliable designers of touchscreen technologies, Richard and I quickly built a solid client base of multi-national customers that focused on lower margin but higher volume products, such as Honeywell’s latest thermostat for the Smart Home, mixed with smaller companies that were in pursuit of non-branded product lines that boasted higher margins but lower volume, such as our private label rear view camera systems. As a result, we are rapidly building on our reputation as one of the most innovative providers of touchscreen technology for our existing product offerings that include home appliances and smart devices and look forward to launching our latest touchscreen technologies that integrate with products in industrial controls, point of sale payment devices, educational toys and smart watches -- all new revenue channels slated for Fiscal 2018.
As our innovative technology, high quality and competitive pricing attracted increased sales from blue-chip customers in North America, we relocated our corporate headquarters to Southern California. This strategic move, which was made almost a year ahead of schedule, provides us with proximity to the Golden State’s tech giants and emerging technologies as well as its world class engineering talent. It also provides our customers with the assurance of doing business with a U.S.-based company.
As your company’s CEO, I will provide highlights of both of our professional bios as context for why we are fully confident in Atlas Technology’s near-term prospects and excited about its long-term future.
Atlas Technology: Accomplished Touchscreen Executive Team
My background includes over 20 years’ experience in the touchscreen industry, since its inception. Prior to co-founding Atlas Technology, I served as the vice general manager for a major Taiwanese OEM manufacturer of touchscreens components. Earlier, I served as an R&D assistant manager for the touchscreen division of a major Chinese OEM company developing new products and optimizing the process for production. I earned a Bachelor’s degree in Mechanical Engineering from National Taipei University of Technology in Taiwan.
Our Chairman and co-founder, Mr. Lin, brings over five years of senior management experience within the touchscreen industry beginning with JoinWell, a Taiwan-based OEM manufacturer of consumer and industrial technology components specializing in the nascent touchscreens business. There, he served in roles including QA, client management, R&D, sales, marketing and promotion as well as materials and components sourcing. Earlier, he began his professional career as a senior engineer in Unimicron, the world’s largest printed circuit board factory, where he directed new product development and quality assurance. Mr. Lin earned a Master of Science Degree in Chemical Engineering from National Cheng Kung University in Taiwan, China.
When we launched Atlas Technology, we brought several of our largest OEM/ODM clients with us from our former senior positions. Now, at Atlas Technology, we have the creative and operational flexibility to build touchscreen solutions for those clients and others. Based on decades of proven experience, they all look to us to continue to innovate and produce best in class solutions for their existing products while enabling new ones.
They place great confidence in our ability to perform, and we are professionally and ethically driven to provide them the world’s most advanced, high quality solutions. Together, Mr. Lin and I own nearly 70% of the Company so our future and our respective family’s futures are intimately tied to the success of Atlas Technology and that of our fellow shareholders.
The Atlas Technology Business
Atlas Technology is an OEM (Original Equipment Manufacturer) and an ODM (Original Design Manufacturer) company. Our touchscreens are being integrated into fitbands, watches, automobile electronics, coffee machines, tablets, point of sale devices and more.
As an ODM, we are contracted by name brand companies to consult on design specifications for producing robust, best in class touchscreen components for their devices or to design components that enable incorporating touchscreen technology into new devices that have not used touchscreen solutions before, such as coffee machines.
As an OEM, we integrate our touchscreen technology to our clients’ specs, although the Atlas Technology name is not branded on the touchscreen components. For that reason, our top competitors, all based in China and Taiwan, are companies of whom few outside our industry will recognize.
We have contract manufacturing agreements in place with manufacturing companies in Taiwan and China, for a current annual capacity of $50 million. We expect that capacity will be sufficient for at least another two to three years before we will need to make any new substantial capital expenditures on our production. We are also currently evaluating acquiring or leasing specialized manufacturing equipment for our next generation solutions which currently remain a trade secret.
Based primarily on the rapid expansion of initial client base, we expect to end our fiscal year ending June 30, 2017 with over $4 million in revenues on gross margins of approximately 30%, which are quite healthy in this business. Our higher margins are largely since we typically collaborate closely with our customers to produce premium touchscreens for new or high-end applications that themselves command premium prices.
The $3.8 Billion Touchscreen Industry with 24.4% CAGR
With the Internet of Things (“IoT”) perhaps the hottest global sector on Wall Street, Business Insider Intelligence reports:
- IoT devices connected to the Internet will more than triple by 2020, from 10 billion to 34 billion. IoT devices will account for 24 billion, while traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise 10 billion.
- Nearly $6 trillion will be spent on IoT solutions over the next five years.
- Businesses will be the top adopter of IoT solutions because they will use IoT to 1) lower operating costs; 2) increase productivity; and 3) expand to new markets or develop new product offerings.
More narrowly defined, analysts estimate the touchscreen total addressable market opportunity for Atlas is currently $3.8 billion and projected to grow at a 24.4% compound annual growth rate to $9.1 billion by 2022.
Atlas Technology’s Competitive Advantages
Our competitive advantages in this marketplace are: Our track record of demonstrated design and innovation; strong industry relationships; technology and engineering talent; U.S.-based corporate headquarters; proven reliability for meeting and exceeding our customers’ touchscreen requirements and quality control specs; and a highly accomplished senior management team.
At Atlas Technology, we understand this is a service business. Unlike our older and much larger competitors, we are nimble and flexible which enables us to quickly accommodate our customers’ needs. On the design (ODM) side of the business, we are visionary and bold. Yet we have a variable-cost infrastructure to instantly scale up, if needed, to book and fulfill single orders of $10 million or more.
We also have a growing portfolio of proprietary methods and materials and other intellectual property such as our rearview mirror touchscreens that enable control of GPS, camera and other functions in a vehicle. This allows us to build a growing and valuable IP asset while erecting barriers to entry.
With a client roster of major global brands such as Honeywell and Kyocera and several others whose competitive concerns prevent us from disclosing today, we are well positioned to bid on and win the business of other equally prominent brands around the world.
As CEO, I manage our North American expansion strategy and corporate finance activities while our Chairman, Mr. Lin, focuses on the manufacturing and operations of the business out of Taiwan. Our key salespeople are based out of the Asian and North American regions, where much of the consumer electronics, automobile and industrial device manufacturing takes place.
Atlas Technology: Bright Outlook for Fiscal Year 2018
With a highly competitive industry position, a nimble U.S.-based operation and analysts forecasting a total addressable market of over $9 billion in the next five years, our key goals for Fiscal Year 2018 include:
- Growing Revenue and Cash Flow. Through significantly increased revenues and streamlined operating expenses, we expect to more than double our financial performance in Fiscal 2018.
- Build and Diversify the Customer Base. Currently, we have almost half a dozen major multi-national customers, all of whom represent major growth channels. Along with growing revenue and profits, we intend to build and diversify our customer base for growth and stability.
- Increase our IP Portfolio. We will continue to protect the value of our research and development by building intellectual property value as an asset through our own R&D, acquisition or licensing.
- Reinforce the Atlas Management Team and Board. As we grow, we plan to add highly accomplished executives to our management team and Board from technology, science and finance to help create new opportunities and steer the Company’s growth.
- Raise Growth Capital. By going public, we lowered our cost of capital. If and when the time is right, we may raise capital to fund growth and accelerate opportunities.
- Communicate Proactively. As a newly public company, we are implementing programs to keep our shareholders informed, and to communicate proactively with Wall Street and the media on our progress.
2018: Atlas Technology is Positioned for Success
As this brief summary of our operational and financial highlights indicates, your company has a strong market position, intellectual property, industry relationships and an accomplished and aggressive management team -- all of which address the large and extremely fast-growing multibillion-dollar touchscreen marketplace.
I, and your entire management team, are honored to lead your company into what I am confident, is an exciting and prosperous future. Thank you for your confidence and support.
Sincerely,
/s/
Ming-Shu Tsai
Chief Executive Officer”
Photos accompanying this announcement are available at
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About Atlas Technology International, Inc.
Atlas Technology International, Inc. (OTCQB:ATLT) is a designer, manufacturer and distributor of touchscreen devices to consumer electronic producers all over the world. Their products power the interface to a wide array of smart devices including GPS systems, point of sale machines, hospitality and medical devices and small appliances. For further information on Atlas Technology International, Inc. please visit our website at www.atlastechintl.com.
(This Press Release may contain certain forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Atlas Technology International, Inc. has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect Atlas Technology International's current beliefs and are based on information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause Atlas Technology International's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Atlas Technology International undertakes no obligation to update or provide advice in the event of any change, addition or alteration to the information contained in this Press Release including such forward-looking statements.)
Investor/Media Contact:
Bill Miller
Investor Relations Partners
Phone: 844-565-5665
bmiller@irpartnersinc.com