Letter to Shareholders Issued Monday, June 22, 2009
B-Scada, Inc. (OTCBB: MOBS) would like to take a moment and thank our shareholders for their ongoing support.
B-Scada was started with initial seed capital from our founder and angel investors. With a significant round of financing in 2007, we were given the opportunity to execute our business plan.
Over the past two year we have been able to assemble and train a world class software development team enabling us to attract fortune 500 companies such as Microsoft, Intel, Emerson, and General Dynamics who have sought our consulting and training expertise. B-Scada talent has been used in software products that train our military, monitor our country's electrical grid, entertain us in Las Vegas, and help us choose the beat seats for watching one of the top NBA basketball teams.
As we reached milestones in our technology development, we posted trials and evaluation downloads of our software on our website. To date, these trials have been downloaded more than 7500 times. Some of the companies that have downloaded our technology have subjected our software to rigorous testing and thereafter contacted us to use our technology in the software products they are developing. These relationships have resulted in several licensing agreements. These agreements are expected to generate long term recurring revenues for us. The companies that have licensed our technology cross a range of vertical markets including business application solutions, industrial monitoring and control, financial services, and healthcare.
For more information on these agreements, please see our news section.
Some of these licensing agreements were signed in the latter half of 2008 and others in 2009. It should be noted that there is typically a delay in revenue recognition from these types of agreements. It will take time for our licensees to complete their products and bring them to market. We project that we will begin to see revenue from these agreements starting in the fourth quarter of 2009 with more significant revenues being generated in 2010. We anticipate solid year after year revenue growth as these software applications mature and are widely adopted.
Creating sophisticated software products is a complex, expensive and high risk endeavor. Many projects never complete, or run grossly over time and budget. The development team at B-Scada has, in the past two years designed, developed, and delivered our own world class solution for monitoring information and data. This application ("Status") will be used as a monitoring solution for manufacturing and heavy industry, and also has application in health care, facilities management, smart grid, and financial services.
"We are impressed with the progress B-Scada has made… their team has done a tremendous job" - Forest Key, Group Product Manager of the .NET Developer Tools Division, Microsoft Corp.
We announced the release of Status in the first quarter of 2009. Over the past few months, we have been assembling a sales channel to sell the software. To date, we have signed four resellers to have our software distributed in the UK, Korea, Indonesia, and Mexico, with several other resellers currently in the product evaluation phase. We have also been contacted by a number of fortune 500 companies with interest in using portions of our technology in their products, or licensing and reselling our Status solution.
As B-Scada moves forward we will be looking to expand our business through the acquisition of synergistic companies with products and services that complement what we have developed. As we grow, we envision creating the "B-Scada Group of Companies" that leverage the same core technology into numerous software products and vertical markets.
The management and employees at B-Scada are very proud of what has been accomplished to date and are very excited and optimistic about our future. We would like to thank you for your ongoing support and the trust you have placed in us. We will continue to do our best to grow the business and build shareholder value.
Ronald A. DeSerranno, CEO