Letter To Shareholders 2007
>>View Letter To Shareholders 2006, 2005
Profits like new products are the lifeblood of any company …be it public or private.
RELM has attained 5 consecutive years of profitability and 6 out of the last 7 …and since 2000 we have developed, manufactured and delivered 41 new products.
The digital P-25 portables and mobiles we have developed during this period have contributed over $55 million in 70% gross margin revenues and have led to our industry leading blended gross margins along with delivering $16.4 million in profits.
Along the path to RELM’s re-birth, we attained a remarkable 15 quarters of consecutive profitability …that was regrettably interrupted last year.
Good Performance …But not Great!!!
Our Goal …is…Great!!
So, the following is our path to Great!!
During the past 7 years we have been playing defense …riding the back of our VHF strength in the Public Safety Market with our successful DPHX and DMH product lines.
To approach Greatness we must go on the offense.
On the attached page is a visual depiction of our path to greatness …our Pyramid of Growth!!!
This path entails the aggressive development of 16 new P-25 APCO products over the next 2 years that we anticipate will propel the company to a new level of LMR solutions to an expanded customer set, and result in greater, more predictable growth while dropping more profits to the bottom line.
These products will be smaller, lighter, mil.spec c,d,e,f,, APCO P-25 Trunking capable and upgradeable, immersible and have Class A specifications that will challenge the technological titans of our industry.
We believe that over the next few years these new products will expand our addressable market by an incremental $3 Billion dollars to which we believe we should be able to capture at least 5 % market share.
RELM Wireless has always been defined by terms like durability, reliability and value. With the new digital P25 KNG series, we're returning premium specifications and performance to the list. With greater range, enhanced audio quality, longer batter life, more intuitive programming and functionality, these products will make it possible for us to serve broad new groups of customers for the first time - opening up "a whole new RELM of possibilities" in the process.
This also brings a more stylistic look to our corporate identity and marketing materials, while retaining the synergies that symbolize the RELM family of products throughout the marketplace. It's a difference that celebrates our past, acknowledges our present and positions us for a more prosperous future.
These plans are aggressive, but critical as we make that next evolutionary step beyond what we are today.
2008 will be a year of transition and re-definition for RELM in an uncertain economic environment …But I believe we will weather the storm and emerge a stronger and better company than we are today…
There is a great deal to look forward to in the months and years ahead. Stay tuned and we'll bring you the very best the industry has to offer.
…On our path to being Great!!!
Sincerely,
David P. Storey
President/C.E.O.
RELM Wireless Corporation


