Letter To Shareholders 2008
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The disappointment of 2008 interrupted our successful streak of five consecutive years of profitability from 2003 through 2007.
This reality caused by the global contagion that affected our economy and the world must be reversed in 2009.
Losing is abhorrent in any venue …and we at RELM …hate to lose.
After suffering through a dismal first half we implemented across the board cost reductions and reorganized both sales and engineering to improve our prospects for profitability. These actions resulted in a profitable third quarter and an improved fourth quarter compared with 2007’s fourth quarter.
In last year’s message I introduced to you our Pyramid of Growth. This expansive plan was to introduce sixteen new digital P25 portables, mobiles, and base stations into our product offerings over the next two years to expand our market growth potential. Even in light of the difficult year in 2008, we forged ahead and introduced three new P25 digital portables and currently have one in FCC approval. These products expand our ‘frequency footprint’ into the UHF bands of 380-470 MHz which focus on the military and public safety opportunities and 440-520 MHz which target large municipal UHF (T-band) opportunities. We also introduced our first 700-800 MHz product in conventional mode which is targeted for the major metropolitan areas that utilize those frequencies.
I would like to remind you that the success we incurred between 2003 and 2007 was born on the back of the VHF frequency band and it is logical to assume that expanding into these other frequency bands with their rich market opportunities will result in revenue growth as we successfully penetrate these new markets. These four portable radios are smaller, lighter, class A spec, Mil-spec C, D, E, and F, waterproof with larger displays and bigger keypads and have a much more user-friendly software interface that we believe will enhance our market position with customers. These qualities support our company creed, which is “a product that is easier to use and a company that listens to the customer and responds with greater value at a lower cost”.
Now, the challenge remains to use these new products to penetrate the strongholds of our competitors. All of our competitors, like most of the companies in the world, suffered in 2008. The environment is a much more aggressive one and the companies that can battle and withstand the pressures of the competition, while winning, will emerge as market leaders. I believe RELM will prevail and come through this economic storm a stronger company; more focused, more responsive, and offering a greater value to its customers than the competition. This is our driving force.
We are continuing to invest in the future with an exciting new P25 mobile family that will mirror our portable product offerings and offer state of the art capability that our competition does not have. These new mobiles are planned for introduction in the second half of 2009.
RELM Wireless Corporation, your company, is disappointed with the results of 2008, but…we are dedicated to reverse that failure and get back to the basic, common sense business practices that resulted in our streak of five-consecutive profitable years. As President and CEO, this is my commitment, and our employees’ commitment, to you as dedicated stakeholders in the future of this company.
Thank you our loyal shareholders for your continued faith in, and support of, RELM Wireless Corporation.
Sincerely,
David P. Storey
President/C.E.O.
RELM Wireless Corporation
