Dallas, TX 11/14/2007 1:42:29 AM
OTCPicks.com Daily Market Movers Digest Midday Report for November 13th SPNG, SIVC, CVDT, DLAV, GXYF
Our Stocks to Watch today include SpongeTech Delivery Systems, Inc. (OTCBB: SPNG), S3 Investment Company, Inc. (OTC: SIVC), China VoIP & Digital Telecom, Inc. (OTCBB: CVDT), DealerAdvance, Inc. (OTCBB: DLAV), Galaxy Nutritional Foods, Inc. (OTCBB: GXYF)
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SPONGETECH DELIVERY SYSTEMS (OTCBB: SPNG)
Detailed Quote: http://www.otcpicks.com/quotes/SPNG.php
Company Profile: http://www.otcpicks.com/spongetech/spongetech.htm
SpongeTech Delivery Systems is a development stage company which designs, produces, markets and distributes cleaning products for vehicular use utilizing patented technology relating to sponges containing hydrophilic (liquid absorbing) foam polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, which is loaded with specially formulated soaps and wax that are released when the sponge is applied to a surface with minimal pressure. The Company's products are currently designed specifically for vehicular cleaning use. However, the Company is exploring the possibility of using its patented technology for the development of sponges for other uses, including for use with anti-bacterial, bath and kitchen soaps for household uses, as well as for use as a children's bath foam sponge.
SPNG News:
November 13 - SpongeTech Delivery Systems, Inc. Is Approved for Trading on the 'Open Market' Segment of the Frankfurt Stock Exchange
SpongeTech Delivery Systems, Inc. (OTCBB: SPNG) announced that it has been granted permission to trade its shares on the Open Market Segment of the Frankfurt Stock Exchange. The Frankfurt trading symbol will be "KBT.F" and the German securities code (WKN) will be A0MR0J.
SpongeTech Delivery System's CFO Steven Moskowitz commented, "We are very pleased to have been approved for trading on the Frankfurt Stock Exchange. The Frankfurt Exchange will make obtaining our shares less problematic for German and European potential stockholders and will provide substantially improved liquidity in our common stock overall."
Mr. Moskowitz said: "Additionally, We are striving to enhance our corporate visibility in Germany and expand our corporate image to a broader investor community in Europe. We believe that the Frankfurt Stock Exchange listing will assure that our compelling story will now reach a much larger European investor audience."
About the Frankfurt Stock Exchange
The FWB Frankfurter Wertpapierborse is the world's third largest organized Exchange-trading market in terms of turnover and dealings in securities. It accounts for more than 75 percent of the total securities turnover in Germany and is therefore the most important of the eight German stock exchanges. The public guarantor of the FWB is the Deutsche Borse AG whose duty it is to ensure the full viability of trading in securities. With the support of state- of-the-art computer-based trading, processing and information systems the Frankfurt Stock Exchange has been able to keep pace with the ever-increasing demands of the international stock market business. There is a full spectrum of computerized security trading available through Xetra® in addition to the traditional floor trading. Xetra® was established in November 1997 and has enabled the FWB to consolidate its existing competitive edge and create an attractive framework for international investors and market participants. The cosmopolitan atmosphere Frankfurt enjoys is demonstrated in the membership structure of the stock market where more than 70 foreign banks and financial service companies are counted among the total of more than 330 members.
S3 INVESTEMENT NEW (OTC: SIVC)
"Up 50.00% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/SIVC.php
S3 Investment Company, Inc. (www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships to achieve reverse merger transactions, and a 51% equity interest in SINO UJE (www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China.
SIVC News:
November 13 - S3 Investment Company Projects $4.5 Million in 2007 Revenues for SINO UJE Subsidiary
Gross Revenues Expected to Increase Approximately 12% Over 2006 Numbers
S3 Investment Company, Inc. (OTC: SIVC), a holding company with two subsidiaries doing business in the China market, announced that subsidiary SINO UJE Ltd. is on pace to top $4.5 million in gross revenues for calendar year 2007, an approximate 12% increase over the 2006 numbers.
SINO UJE (www.sinouje.com),a non-stocking distributor of medical and industrial high-tech products to markets throughout China, has been granted exclusive distribution rights in China to medical and industrial products manufactured by leading companies in Europe, North America and Japan. These products are marketed to end-users, including major Chinese hospitals and private companies in a variety of fields, as well as original equipment manufacturers (OEMs), such as Phillips, Siemens and GE, that package some of the distributed products with their technologies.
CHINA VOIP & DIGITAL (OTCBB: CVDT)
"Up 18.06% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/CVDT.php
China VoIP & Digital Telecom, Inc. offers Voice over the Internet Protocol service in People's Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd. Through Jinan Yinquan, China VoIP is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its NP Soft Switch system in China and is currently in the testing stage of other Information Technology products. More information can be found at www.chinavoip-telecom.com.
CVDT News:
November 13 - China VoIP & Digital Telecom, Inc. Subsidiary Reports Record Third Quarter Revenue & Profit
Jinan Yinquan Technology Co., Ltd. Third Quarter Revenues Increase by 1,000 Percent Compared With the Same Period of Last Year
Jinan Yinquan Technology Co., Ltd., a wholly owned subsidiary of China VoIP & Digital Telecom, Inc. (OTCBB: CVDT) reported operating results for the third quarter ended September 30, 2007. Revenues were $1,899,854 as compared to $152,329 during the same period ended in 2006, an increase of $1,747,525 or 1147%.
During the nine months ended September 30, 2007, the company recorded revenue of $4,155,855 compared to $889,602 during the same period ended in 2006, an increase of $3,266,253 or 367%. Net gain recorded $854,878 during the nine months ended September 30, 2007, representing a 388% or $679,773 increase as compared to $175,105 during the same period of 2006.
The company announced that the increase of revenue and net gain are mainly due to the following reasons: (a) significant revenue increase from rapid development of users; (b) significant decrease of the settlement cost with telecom carriers compared to the same period of last year; and (c) better control on selling, general and administrative expenses.
Li Kunwu, President and CEO of China VoIP & Digital Telecom, Inc., attributed the sharp increase in revenue to successful marketing efforts and rapid acceptance of the Company's products and services in newly developed markets. The new markets include Zhejiang, Anhui and Huangshan, which are developed in an orderly way now.
"We now have the capability to handle a significantly greater number of customers for our VoIP products," said Kunwu. "We have developed the Zhejiang Geely Group — a Hangzhou-China-based auto manufacturer, as our key customer within this period, and we anticipate more and more key-customers as Geely will be developed in the following quarter, which will bring additional increase in revenue."
The complete financial statement will be disclosed on Nov. 14, 2007.
DEALERADVANCE (OTCBB: DLAV)
"Up 133.33% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/DLAV.php
DealerAdvance, Inc. engages in the sale, marketing, and installation of a Web-based application software and database systems that manages the auto dealer-client relationship. The company offers WebDA that allows automobile dealers to capture a customer's contact and vehicle information, purchasing requirements, and gives dealership personnel the ability to search inventory in their DMS inventory systems. This search feature can be used to search inventory at multiple locations, and enables dealership personnel to locate an appropriate vehicle in stock and print out the necessary forms to complete the purchase or lease deal. The company was founded in 2000 and is based in Addison, Texas.
DLAV News:
November 13 - DealerAdvanceTM Announces Sales Success of WebDATM
DealerAdvance™, Inc. (OTCBB: DLAV), developers of proprietary Internet applications for the automotive retail industry announced that since the release of WebDA™, the web-based version of DealerAdvance™, the company has booked in sales revenue of over $600,000. Steven Humphries, in an analyst meeting, announced that he expects to bring on-line an additional 20 clients boosting revenue to approximately $1.3 million by years end.
“WebDA™ is the product of six months R&D and another six months of trials,” said Mr. Humphries. ”WebDA™ will transform DLAV from a hardware driven company to a software driven company and bring Dealerships throughout the country easy, cost effective access to programs necessary to run their dealerships. The software will allow dealerships to run programs without a heavy investment in new hardware, which was previously required with DealerAdvance™. Our goal is being realized and that is to quickly turn the company around and create shareholder value. The company expects to generate $1.3 million in revenue from the conversion of existing dealerships by the end of the year and an additional $5-$7 million for newly added dealerships by April 2008.”
WebDA™ changes the platform of our company from being server dependent to a simple Internet product. The opportunity to earn millions from fast track sales promotions is now available for both DLAV and its dealerships. Dealers will no longer be required to purchase expensive hardware, as the application can be accessed and used from PCs anywhere, anytime.”
VP of Sales, Dave Scaturro discussed the ease of conversion of existing accounts and his expectations for 2008, suggesting that growth during 2008 should put the company in the black. “The conversion of our DA clients and the addition of new clients is all but certain because of their already successful experience with DA and the much superior attributes, especially the accessibility, that WebDA™ software offers from a PC anywhere.”
GALAXY NUTRITIONAL FOODS (OTCBB: GXYF)
"Up 29.03% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/GXYF.php
Galaxy Nutritional Foods, Inc. develops and markets plant-based cheese and dairy alternatives; and processed organic cheese and cheese food to the retail and food service markets in the United States and internationally. It offers cheese alternatives under the Veggie brand; soy-based cheese alternatives under the Veggy brand; soy free cheese alternatives under the Rice brand; casein free dairy alternatives under the Vegan brand; casein free and soy free dairy alternatives under the Rice Vegan brand; and organic cheese products under the Wholesome Valley Organic brand. The company also offers imitation and processed cheese alternative products. It sells its products to supermarket chains, mass merchandisers, and natural foods stores, as well as to food distributors who supply food to restaurants, cafeterias, hospitals, correctional institutions, and schools. Galaxy Nutritional Foods also markets its products directly to franchisees of national restaurant chains. The company was founded in 1972. It was formerly known as Fiesta Foods & Galaxy Foods and changed its name to Galaxy Cheese Company in 1980. Further, it changed its name to Galaxy Nutritional Foods, Inc. in 2000. Galaxy Nutritional Foods is headquartered in Orlando, Florida.
GXYF News:
November 13 - Galaxy Nutritional Foods Reports Second Quarter Operating Results
Net Income of $660,341 Compares With Prior-Year Net Income of $561,564
Galaxy Nutritional Foods, Inc. (OTCBB: GXYF), a leading developer and marketer of cheese alternatives, organic dairy and other organic and natural food products, today reported its operating results for the second quarter and first half of FY2008.
For the three months ended September 30, 2007, the Company reported net income of $660,341, or $0.03 per diluted share, on net sales of approximately $6.4 million. In the prior-year quarter, the Company reported net income of $561,564 or $0.03 per diluted share, on net sales of approximately $6.7 million.
For the six months ended September 30, 2007, the Company reported net income of $811,340, or $0.04 per diluted share, on net sales of approximately $12.3 million. Operating expenses during the first half of FY2008 included a previously disclosed non-recurring employment contract expense of $346,447. Exclusive of this charge, the Company would have reported net income of $1,157,787 in the six months ended September 30, 2007. In the six months ended September 30, 2006 the Company reported a net loss of ($780,865), or ($0.04) per diluted share, on net sales of approximately $14.6 million. Operating expenses in the first half of FY2007 included $1,428,000 in charges related to a reserve on a stockholder note receivable, $173,308 in costs related to disposal activities and $98,160 in non-cash stock-based compensation expense. Exclusive of these charges, the Company would have reported net income of $918,603 in the six months ended September 30, 2006.
The Company generated EBITDA, as adjusted, (a non-GAAP measure), of $1,424,901 (11.6% of net sales) in the first half of FY2008, compared with EBITDA, as adjusted, of $1,559,638 (10.7% of net sales) in the first half of FY2007 (see EBITDA table at end of this release for further Non-GAAP information).
"We are pleased to report a slight improvement in net income in the second quarter of Fiscal 2008 versus the same prior year quarter. As well, our gross profit % in the second quarter remained relatively stable with prior year results at slightly above 41%," stated Michael E. Broll, Chief Executive Officer of Galaxy Nutritional Foods, Inc.
"The reductions in current period net sales versus the prior period net sales primarily reflect our elimination of unprofitable non-branded product lines. The quarterly decline in net sales versus the prior year periods should level out in the second half of the current fiscal year, as most of the unprofitable sales were eliminated in the first half of the prior year. As well, we are beginning to see stabilization and moderate sales growth in our primary branded product lines versus the prior year. Going forward, we will continue to focus on driving brand oriented sales as well as exploring new product opportunities that fall under the "'healthy foods' umbrella," concluded Broll.
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