LOS ANGELES, CA, March 16, 2018 (GLOBE NEWSWIRE) -- Gawk, Inc. (OTC PINK: GAWK)
Dear Shareholder;
We’ve always disclosed all the updates, good or bad, to our shareholders. This is a good news/semi-bad news letter. The good news first: We have two potential acquisitions under analysis, since our growth strategy includes purchasing businesses that have market share, complimentary assets, advanced systems and infrastructure. Gawk’s management team grows as we employ talented, experienced professionals from our competition.
The good news continues: Our technical staff has created a best in class “voice broadcasting” platform, and in the 1st quarter, we also completed the development of our first proprietary software platform, a product known as Direct Delivery, which is a state-of-the-art Ringless Voice Mail system. This product has already generated over 70 new accounts since launch. The new “voice broadcasting” platform and the Direct Delivery platform also are enabling us to move into higher margin retail accounts and away from lower margin wholesale customers. We will be announcing significant customer wins in the voice broadcasting arena and in the RVM sector in the coming days.
Because the price of shares of Gawk has been stalled by our delay in filing quarterly reports, our Audit Committee chairman will now take an active role in the preparation of audit materials and in interfacing with our auditors. All bookkeeping has now been brought in-house and we are working to consolidate reporting from our subsidiaries to expedite the time needed to produce compiled data. As previously announced we have changed auditors to DMCL, Inc. who we feel are better suited to company’s like ours and can provide the needed professional services in a much more timely and cost effective fashion.
Which brings us to the “bad” news. As our shareholders know, our performance in the first three quarters of FY2018 was strongly affected by the delays associated with our public filings. Due to reasons beyond our control and with no reflection on the company or its financial reporting, these delays prevented the company from proceeding with multiple planned acquisitions, which according caused the company to under run our projected revenues.
We are making maximum efforts on increasing our revenue, both through acquisitions and organically, while reducing our General and Administrative costs.
We have emerged stronger than ever before. I have a deep resolve to finish this year strong and with knowing we have a powerful base for more growth in FY2019.
Thank you for your continued confidence in Gawk.
Sincerely,
Scott Kettle
CEO
About GAWK, Inc.
GAWK, Inc., offers a suite of cloud communications, cloud connectivity, cloud computing, and managed cloud-based applications solutions to small, medium, and large businesses; and offers domestic and international voice services to communications carriers worldwide. It offers a suite of advanced data center and cloud-based services, including fault tolerant, high availability cloud servers, which comprise platform as a service, infrastructure as a service, and a content delivery network; managed network services that converge voice and data applications, structured cabling, wireless, and security services, as well as include Internet access via Ethernet or fiber at speeds ranging from 10 Mbps to 10 Gbps; and data center solutions, including cloud services, colocation services, and business continuity services, such as storage and security. www.gawk.com
Forward-Looking Statements
All statements in this release that are not strictly historical facts are "forward-looking statements." Such forward-looking statements are based on GAWK's current assumptions, beliefs and expectations, and involve risks, uncertainties and other factors that may cause GAWK's actual results to be materially different from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words such as "expect," "plan," "possibility," "offer," "if," "negotiate," "when," "believe," "will," "estimate," "continue," and similar expressions. Risks, uncertainties, and other factors that could cause or contribute to such differences include, but are not limited to: ongoing and future intellectual property enforcement actions; the ability to successfully litigate or settle claims of patent infringement; GAWK's ability to obtain necessary financing, generate sufficient cash flow, and maintain appropriate indebtedness; and the increasing development of market competition in the area of telecommunications. These factors and others are described in more detail in GAWK's public filings with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in GAWK's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of these reports can be found on GAWK's website (www.gawk.com) under the heading "Investor Relations." GAWK is providing this information as of the date of this release and, except as required by law, does not undertake any obligation to update any forward-looking statements contained herein as a result of new information, future events or otherwise.