RONKONKOMA, N.Y., March 22, 2004 (PRIMEZONE) -- Trans Max Technologies, Inc. (OTCBB:TMXT), Chairman and CEO Peter Mergenthaler has provided financial goals and projections for the company.
Our research indicates that there are approximately 12,000,000 gasoline engines manufactured for the domestic auto industry and 125,000 for the marine industry per year. Therefore, we estimate the domestic market (excluding the rest of the worlds market) to be conservatively in excess of $2,000,000,000 for OEM and replacement ignition systems. These projections do not include foreign sales, which we feel are greater than the domestic market.
Our other products are more difficult to project. No other direct products exist in these categories so we have taken a conservative approach to our projections. If our estimates are correct, we estimate this market to be as or more significant as the market for ignition products.
We estimate in our first year, it is reasonable to expect our sales to come in at 4,000 ignition units. The average price per unit (which may vary depending on whether customers are warehouse distributors or jobbers) is approximately $650, for gross sales of $2,600,000. We project our other products will contribute approximately $2,000,000 to first year sales.
Gross profit margins are projected to range from 30% to 75% depending on the order size and purchaser.
In the near future, we feel it is possible for us to capture 3.0% of the combined projected market. This equates to gross sales of approximately $120,000,000.
As we have stated, we are aggressively pursuing acquisitions and our goals and projections do not reflect such potential acquisitions.
Trans Max Technologies, Inc. and its wholly-owned subsidiary Perma-Tune Electronics, Inc. through its Plasmatronics division, is a developmental Company engaged in the automotive and marine electronics industry and has several cutting edge products that were recently introduced at the Miami International Boat Show.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Trans Max Technologies Inc. takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties which is not paid for by the Company.