MINEOLA, N.Y., Oct. 27, 2004 (PRIMEZONE) -- Torbay Holdings, Inc. (OTCBB:TRBY): Shortly before our manufacturing run was due to commence, on the basis of advanced orders received, it was calculated that 34% of the inventory that the proposed production created was already allocated to the order book. Consequently the decision was made to increase the order quantity. This necessary decision has had the result of extending delivery by several weeks.
It had been anticipated that the stock on hand would carry us through into September, when new inventory was due to arrive. However, the anticipated summer lull never materialized and order flow was ahead of that expectation. As a consequence this depleted our inventory of Right Handed stock. As of today we have only some 60 Left Handed units remaining, which is also gratifying, as it indicates that we have anticipated Left verses Right handed requirement relatively accurately. Due to this "out of inventory position," as a technicality, under accounting convention, we will post a lesser revenue figure for Q3 compared to Q2, this is simply because revenue cannot be booked until goods are shipped and monies are received. Our actual business position demonstrates continued growth and increasing consumer demand as will be seen below in an order book that is roughly equivalent to sales during our entire first year of operation.
Our order book and revenues, un-audited so subject to change, added together in Q3 were almost $120,000, approximately 50% up on business as revenues in Q2. Our order book as of today is over $90,000. As these orders are to well established and trusted distributors or via credit card purchases, we are confident, barring any unforeseen circumstance, in our ability to commence converting these orders into revenues during this quarter.
By increasing the size of the manufacturing run it is hoped we will maintain an inventory position sufficient to satisfy so convert most orders to revenues during the winter holiday season that is approaching and our anticipation, based on growth trends and current sales expectations, is to restock in Q1 of next year.
Tom Large, President & CEO, stated, "We see much opportunity ahead, we expect to shortly meet some key milestones that should demonstrate our potential in the global marketplace and recognition by major computer industry players. Growth into corporate accounts continues, with accolades for our products from one Fortune 500 company who are now extensive users and report that 90%-95% of their users prefer our product over others. A phone call placing a multiple mouse order from another Fortune 500 company reported an 'RSI epidemic' that they are addressing in part with our products. Reaction to the color options appears to be very good and Onyx (black) is very popular.
"To further explain of our view of the 508 position in response to emails from individuals following Monday's PR: The argument in regards to our Section 508 listing will, in our opinion and ahead of receiving written legal opinion, hinge on a ruling as to whether computer mice are or are not Electronic and Information Technology (E&IT). We say that they are, the GSA 508 says that they are not. The GSA is not saying that our mouse products do not comply with the 1194.26 Standard; they are saying that ours or anyone else's do not have to as, by their determination, computer mice are not E&IT and they are therefore not applicable to 508 Law so have no need to be compliant with the 1194.26 Standard.
"Why do we disagree and why apply for compliance in the first place? Because Section 508 Law states in regards to applicability: 'keyboards and other mechanically operated controls' (please use the link below to navigate to 508 Law so as to see this in context) or, put another way, keyboards and mice, trackballs, etc., etc. In our opinion, the term 'mechanically operated controls' is used so as to be a catchall that encompasses all likely manner of input device on the market or that may come on to the market in the future. Such ambiguity avoids naming any one specific type of input device in order to include all devices that are mechanically operated.
"The Section 508 Group's response to this argument against that specific wording of the Law is, in essence, 'this Standard of the Law is primarily applied to power switches and other buttons (on the 'tower') of a desktop computer and not the keyboard and mouse (that are connected by cable to the tower)!' So we are given to understand that a Law was passed that, in part, covers the use of a mechanical button that is used, maybe, twice daily, which excludes other buttons or mechanically operated controls that can be used thousands of times a day! But then the GSA has stated to us that if the keyboard is built in, such as with a laptop computer, then the 1194.26 Standard is applied. So our opinion of the GSA's interpretation is that the difference must necessarily be in whether a mouse or keyboard is bolted onto a computer or if it is connected by a cable. Referring once more to the wording of the Law: 'The standards define electronic and information technology, in part, as any equipment or interconnected system or subsystem of equipment, that is used in the creation, conversion, or duplication of data or information.'"
References to issues cited herein, as forward looking statements, are made in good faith though cannot be relied upon as occurring, achieving an acceptable outcome or contributing towards the business of Torbay Holdings Inc.
Section 508 including Section 508 Law at a tab labeled 508 Law. www.section508.gov