ST. PETERSBURG, Fla.,
April 5, 2012 /PRNewswire/
-- Infrax Systems, Inc. (OTC.BB: IFXY), a global provider of
Smart Grid-related products and services for the energy and utility
industries, today issued the following letter to our shareholders
from our acting CEO Sam Talari:
Dear Fellow Shareholders,
As an acting CEO of Infrax Systems, I would like to update all
of our shareholders on our current business, future strategy and
our overall vision.
Management
As you well know, our CEO and our co-founder, Mr. Paul Aiello, resigned from the Company as
President & CEO, due to medical and personal reasons
to focus more on family matters. His departure is not due to any
disagreement with the Company on any matter related to the
Company's operations, policies or practices. Mr. Paul Aiello will remain a board member and
advisor and will continue his contribution to the future of the
Company.
Mr. David Glaser was named the
Company's interim COO. He is a CPA with over twenty five years of
experience in successfully directing multi-million dollar projects
for various private sectors on a global basis. As CFO of Piper
Aircraft Corporation, he was instrumental in setting up various
financing plans (asset based and EXIM guarantees) while utilizing
creditor negotiations in an effort to keep an adequate supply of
materials flowing for continued operations of the Company. He was
successful in completing one of the largest direct working capital
guarantees ($50 million) for the
financing and ramp up of export sales for the company. Mr. Glaser's
addition to the management team will allow us to move to the next
level of our business development activities, including completion
of present and future acquisitions, implementing financial controls
and increasing sales.
Mr. Terry N. Gardner joined the
Company as its Vice President of Engineering and Professional
Services.. This new business unit has been created to provide
engineering support for all Infrax products as well as Professional
Services to our customers in the energy and utility markets.
The direction of the Professional Services unit is to provide
design and consulting services in advanced areas such as Smart grid
networking, Distribution Automation, NERC Critical Infrastructure
requirements and Multi-Tiered Telecommunications networks..
Terry Gardner brings over 30 years
of utility engineering experience to Infrax Systems through his
career spanning two leading utilities in the Southeast United
States. He has extensive knowledge of broadband
telecommunications networks, IP and Ethernet networking, NERC SIP
requirements for substation and Critical Infrastructure
communications, and Smart Grid Networks. His newly created
unit will contribute immensely to the organic growth of our revenue
and gives us access to decision makers at major utilities in the
Southeast United States.
Advisory Board
We have expanded our advisory board seats with the inclusion of
the following three new members:
- Vik Grover - Senior Managing
Director, Investment Banking at Source Capital Group, Inc.;.Source
has an extensive financial industry experience in firms such as
Bankers Trust, Chemical Bank, and Smith Barney. Our belief that the
best financial advice should be independent, unbiased and
tailor-made for each client's needs is at the core of every
client's relationship with our firm.
- Jaanus Tamm – CEO of Defendec
Inc.; Defendec actively participates in European research
projects. In cooperation with the European Border Guards and
Frontex, Defendec is developing the embedded software for TALOS, a
European Union next generation land border surveillance
system. TALOS is a pan-European research project co-funded by
the European Commission.
- Bill Barry – Southern Power
& Controls. With projects ranging from aviation to
manufacturing facilities and from homeland security to power
generation, Southern Power & Controls is an electrical
contractor that tackles the most complex jobs with unparalleled
skill and customer service.
Our Current business & Revenue Guidance
Business – Engineering & Professional Services
Distribution Automation
For the past few weeks, we have been working hard to complete
our first ever multi-year multi-million dollar RFP (Request For
Purchase) for a major utility. We have completed the proper
documents and are awaiting response or an award for the
project. Although there are no guarantees that we will be awarded
the project, we are ecstatic that our technology has shown its
competitive advantage against other fortune 500 companies that were
competing against us. We hope this project would open many doors to
the future growth of our company and validation of our unique
product and services. This and other future RFPs will be headed by
our Engineering & Professional Services division.
Substation Security
We have piloted our Substation Security products for two major
utilities and are awaiting purchase orders. We hope to pilot our
products to more utilities in the next few weeks. Our Substation
Security products cost could range from tens of thousands of
dollars to hundreds of thousands of dollars, based on application.
There are hundreds of thousands of Substations in the USA alone and we believe our Substation
Security products will be contributing immensely to our revenue
going forward. Physical security and intrusion detection is
becoming a critical concern to the electric utility industry.
Not only has this concern proved an economic reality, but it also
is now seen as a safety concern as copper theft usually causes
substation transformers and safety equipment to become unstable and
extremely hazardous. Infrax is developing an intrusion
detection package which is both economical and functional and can
provide first alert as well as visual verification of
intrusion. Not only will this system help reduce outages and
property loss, but it will provide effective indication as to
whether a substation's security has been compromised.
Business – Lockwood Technology
We have signed one contract and have other proposals pending.
Currently, its technology is in the process of being adapted and
embedded into our Secure Intelligent Energy Platform. For the past
few months, Lockwood has shown not only to be a great technology
but also an instrument to increase revenue and bring profitability
to Infrax Systems. The Lockwood employees are working very hard to
increase its awareness throughout the industry and have garnered
much interest due to its 16 years of history.
Per our previous 8K, Lockwood Technology completed the largest
implementation of its technology at Qatar University. The software implementation
included Lockwood's Asset Tracker, Event Manager, RemoteLink, Dock
Manager, Asset Tracker Mobile and RFID Collector. Qatar University needed to perform a full
business process improvement analysis for asset management, and
recommend procedures and solutions to fully integrate the
recommended asset information management system with RFID based
automated data capture technologies. The contract value awarded by
Qatar University is a multi-year
multi-million dollar agreement and is currently being managed by
multiple vendors and partners.
We are in the process of completing the spin-off of Lockwood and
will file a S1 registration with the SEC shortly. Management
believed that our shareholders deserved a much awaited dividend. As
previously mentioned, the record date has changed to April 19th, but if any shareholders sell their
Infrax shares before the actual dividend date, they will lose their
rights to the Lockwood shares.
Business – Infrax Products & R&D
Our product development is proceeding full speed toward
completion of the Secure Network Interface Card (SNIC). We
will begin our field trials within the next few weeks. Although the
current version of the card is made for Itron's Centron II meters,
the design can be fairly easily modified to fit the form factor of
other meters as well. The meter data will be encrypted and securely
transported to an electric utility's energy control center over a
robust, reliable communication infrastructure that will be planned
and designed by Infrax through the Professional Services
division.
We are also working on revolutionary Nodes to collect and
distribute the data to the utilities central office. Our Nodes are
made up of Collectors and Concentrators with the same security
features as our SNIC. The Collectors are devices that communicate
with the SNIC on one side and transport the data over an
appropriate wide area network (WAN) to a concentrator, typically
installed at a utility's substation. Repeaters are devices
that extend the reach of our network. Collector has the option to
support a variety of WAN modules such as RF, cellular, WiMax
etc.
With over 3.5 trillion dollars in
estimated spending on the Smart Grid related products and services
globally, we believe with the completion and the production of our
R&D products and our related services, Infrax Systems, will see
considerable revenue for the coming years.
Patents
Presently, we have filed two provisional patents with the patent
office and will file more as we continue our development in these
revolutionary products.
Future growth through SPC
As in the past, we will continue to focus on our growth through
strategic partnerships and acquisition. We have been working
diligently to complete the acquisition of Southern Power &
Controls, although with the transaction of this size we have had to
mitigate certain financial issues to minimize dilution to the
company and the shareholders. Dilution is the major factor in
breaking down stockholder value so as management, we have to
consider the best possible path to complete this transaction
without any major dilutions. Management is currently working on
proper funding sources to complete this transaction without hurting
our stockholders. Both companies are aggressively working to
mitigate these delays and complete the transaction. Currently SPC
and Infrax are working together as a team on a project for a major
utility and continue doing so in the future. We will inform our
shareholders when the transaction is completed.
Technology & Corporate Visibility
In the coming months, we will be highlighting our technology at
several industry conferences in the US, Europe, Asia
and South America. We are set to
exhibit through the help of the Department of Commerce and the
Smart Grid Trade Mission to the UK in London in a few months and hope to expand our
reach to other European countries in the near future.
Our Company continues to make great progress toward our goal of
securing the emerging Smart Grid. Infrax System's Secure
Intelligent Energy Platform continues to be received as a major
security component for the emerging smart grid. We are creating an
ecosystem of security and communications products, and our core
technology will meet or exceed the emerging energy grid security
standards.
Our Future
While we still face challenges, we are confident that our
activities better position Infrax for future success. We continue
to believe that we are the only solutions provider focused on new
technology and securing both communications and meter data. We are
committed to the advance in Intelligent Smart Grid and Meter
communications technologies that are efficient, reliable and
secure. Our belief has been reinforced by the interest
shown in our technology by both utilities and meter
manufacturers.
The reality of the vulnerability of the grid has gained
acceptance globally. Infrax is well positioned to strengthen what
was once seen as the weakest link into an impenetrable wall. We
will continue to add to this strength through organic growth and
acquisition.
We continue to be grateful to our loyal shareholder base and
together we will build a Company that is both successful and
relevant in the times we live in.
About Infrax Systems
Infrax Systems offers a series of interrelated operational
management, communications, and grid security related products and
services known as Secure Intelligent Energy Platform (SIEP). Our
products enable a comprehensive and unified solution for
communications and applications management of the Smart Grid. SIEP™
incorporates a wide array of communications, security, device and
data management tools for Smart Grid applications such as advanced
metering solutions and grid optimization. SIEP platform creates a
unified solution to securely manage Advanced Metering
Infrastructure (AMI) and distribution automation. Infrax's secure
smart grid platform, incorporates a communications transport and
management system, (GridMesh™), device and data security
management, and ultimately secures intelligent endpoint devices
(SIED). The secure management of the "last mile" backhaul will be
necessary for utilities to implement Smart Grid applications
including AMI, real-time pricing, Demand Side Management (DSM),
Distribution Monitoring and Automation. When combined, these
applications can offer economic, operational and environmental
benefits for utilities, and ultimately the utility's customers.
For INFRAX Systems information, contact Investors@Infraxinc.com
or visit www.infraxinc.com.
Forward-Looking Statements
This press release may contain forward-looking statements
covered within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among other things, plans and timing for the introduction or
enhancement of our services and products, statements about future
market conditions, supply and demand conditions, and other
expectations, intentions and plans contained in this press release
that are not historical fact and involve risks and uncertainties.
Our expectations regarding future revenues depend upon our ability
to develop and supply products and services that we may not produce
today and that meet defined specifications. When used in this press
release, the words "plan," "expect," "believe," and similar
expressions generally identify forward-looking statements. These
statements reflect our current expectations. They are subject to a
number of risks and uncertainties, including, but not limited to,
changes in technology and changes in pervasive markets.
Contact:
Media Contact:
Infrax Systems, Inc.
investors@infraxinc.com
727-498-8514
SOURCE Infrax Systems, Inc.